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(Page 2) MINE ID tJ OR PROSPECTING lD tl M- INSPECTION DATE /03 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its review of amendment application AM-03 for this Hard Rock and Metals 110 DMO permit, to inspect an area requested for release, and to inspect an area to be added to the permit. The operator was contacted about the inspection and a time was arranged to meet at the site. The operator'srepresentative named on page one was present during the inspection. The required ID sign was posted at the entrance to the site. Numerous permit boundary signs were also observed posted along the perimeter of the permit. This includes new markers placed along the proposed boundary revisions (added under AM-03 and released under AR-01). The operator applied for release of 0.67 acres of undisturbed land on the northern end of the permit area, which lies on the north side of the ridge, away from any previous mining disturbance related to this permit. The area consists of steep talus and no soil or vegetation, no trails or roads, no structures or underground openings. The release of that area has been approved. The originally-approved location for the permanent mill building at the top of the ridge contains no mill building, just the terminus of a dirt trail in the permit. (The dirt trail also leads to Adits 11, 12, 13, which are historic adits, and are afully closed.) This amendment seeks to move the approved location of the mill to the mill's present location. This will be approved as part of the amendment. The area to be added as part o4 this amendment was also inspected. It lies on the southern end of the permit area, on a grassy slope. There is no disturbance there currently, and little to none planned. The interior of the mill building was inspected, with attention paid to storage of designated chemicals, containment of fluids associated with the leach circuit, and spent ore neutralization. The tailings are neutralized before the slurry is angered out of the mill building. The neutralized tailings sump was nearly empty (contained some tailings sand, but was dewatered. All fuel storage is outside the building, and has secondary containment. The ground under the SE corner of the foundation of the mill building had showed signs of erosion, but the operator has recently reinforced it. That reinforcement was only temporary and further work should be done to stabilize the slope, but there is no problem at this time. The operator is reminded that the foundation and stem walls function as the secondary containment for the leach circuit. Allowing them to crack due to erosion will preclude use of the building as a mill and may become a problem with noncompliance with a DMO condition. The mill building is to be changed to the status of a permanent structure. This will be approved as part of the amendment, and the upcoming bond calculation will reflect this change. The wooden storage shed on the mill building bench was observed to be close to the edge of the bench, and should be moved farther away from the edge. The next bench below the mill contains the active mining area, topsoil pile, ore crusher, and storage of various parts for the mill circuit. Some parts have been removed from the bench. Adit 8, against the face of the mining area, has been closed by backfilling. It may become opened or exposed again after more mining occurs there, and the adit must be closed again. The area of the proposed tailings disposal area was also inspected. The site is an extension of a bench already existing at the Adit 2 location. (Adit 2 has been closed and the slope partially backfilled.l The tailings disposal area is bulldozed out of the hillside material, with all material cast over the side onto the native slope. The cut face and depression in the bench exhibit the bedrock described in the amendment application. The outslope of the bench is unconsolidated mixed material lying at the angle of repose, so no tailings must be placed on the outer portion of the bench. Loading of tailings must be limited to the depression and against the cut face. Topsoil must be salvaged and set aside for reclamation, as further areas are affected by mining or tailings area expansion. Waste rock, and other rejected material is planned to be placed in the contour fill areas, with those areas then topsoiled and seeded. The operator is reminded that the contour areas also contain topsoil which must be removed before placing fill there.