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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-284 <br />INSPECTION DATE: 3/24/05 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Minerals and Geology. The JD-6 and associated Mineral Joe Claims, JD-8, JD-9 and the Wright Group / SM-18 <br />Mines have begun mining operafions after a lengthy period of minimal activity. The Division of Minerals and <br />Geology is inspecting the referenced sites in conjunction with permit reviews to ensure that permits meet current <br />standazds for metal mining activities. No problems or issues will be noted within this report specifically as any <br />concerns will be addressed through the permit review process for each site individually. <br />The Mineral Joe Claims are part of the overall complex that makes up the JD-6 Mining Area. The claims are kept <br />under permit for 2 reasons. First, the Duggan Adit is used for access to the JD-6 ore body. (Photo 1) The other adit <br />that has not been reclaimed provides a required emergency exit for the active JD-6 Mine. The second reason the <br />claims area aze still permitted sepazately is that originally the Department of Energy requested that waste developed <br />from the federal tract lease program be kept sepazate from other mine generated waste..Since that original request <br />back in the 70's, DOE -has relaxed that requirement. However, the waste piles are to be used once space <br />underground is depleted so the perrnit is kept in an active state. (Photo 2) <br />Most of the Mineral Joe Claims has been reclaimed. The exception is the still open adits referenced above and the <br />waste piles and associated mining structures adj acent to the Duggan Adit. Current practice is that waste generated <br />within the mine is being placed in mined out azeas as part of a back fill /gob operation. This effort keeps the <br />operation within the cunent footprint of existing disturbances and reduces haulage costs for the operator. <br />Some low-grade ores are being brought to the surface load-out area. The inspector noted aloader /truck loading ore <br />for shipment off site. Approximately 30 tons of material was observed stockpiled for loading. (Photos 3,4 and 5) <br />Fuel tanks on site aze noted as being in secondary containmerit structures constructed of earthen berms with a plastic <br />liner. Heavy precipitation in the azea has created some water retention within these structures but it appears not to <br />be a negative impact at this time. (Photos 6 and 7) <br />No erosion or storm water issues were noted at this time. Some erosion of the waste piles was noted, but the gullies <br />were observed during the last inspection and measures were taken to stop the process. Slopes aze not at their final <br />configuration and repairs will be done when final sloping occurs. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology; Grand Junction <br />Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address cc: <br />^ CE <br />NAME: Glen Williams ^ BL <br />OPERATOR: Cotter Corporation ^ FS <br />STREET: P.O. Box 700 ^ HW <br />CITY/STATE/ZIP: Nucla CO 81424 ^ HMWMD (CH) <br />^ WOCD (CH) <br />^ OTHER <br />