INSPEC10820

• Permit No: M1978279
• IBM Index Class Name: Inspection
• Doc Date: 3/22/2002
• Doc Name: Inspection Issues
• From: DMG
• To: Flag Resources Inc.
• Inspection Date: 3/15/2002
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
DepartmeaE of Natural Resources
1313 Sherman St., Room 21 S
Denver, Colorado 80203
Phone: [phone]
fAX: [phone]
Mazch 22, 2002
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DIVISION O F
MINERALS
GEOLOGY
RECLAMATION
MINING•SAFETY
Fred Frei ~
Flag Resources, Inc.
1412 CR 311
New Castle, Colorado 81641
Re: Goldman Pit, Permit No. M-1978-279, Inspection Issues.
Dear Fred:
Bi11 Owens
Governor
Greg E. Walther
Executive Oirettor
Michael B. Long
Division Director
Please find attached the inspection report for the above referenced site. A review of the file on this site
shows that it is typical of those done in the late 70's and early 80's. A bare amount of information and
vague references to mining and reclamation methods was more the norm back then. This Office needs
to bring the permit more up to date to protect Flag Resources as well as the Division during public .
scrutiny.
The Mining Plan calls for trenching and terracing to be used and quite frankly, this Office is unclear as
to what the original intention was given the current state of the site, permit documentation and
topography. It is in Flag Resources best interest to do a Technical Revision (TR) and address this matter
so that current mining methods and duection are more clearly defined. As the site appeazs now, the
Mine Plan has not been followed. The addition of a visual berm should also be addressed as the size of
the berm and final disposition of the material needs to be clazified. A review of annual reports and
other materials raises the question of if there is enough material to accomplish the required reclamation.
The request for volume calculations is made to ensure [hat Flag Resources and this Office have a cleaz
understanding of what is needed to accomplish the reclamation goals. Flag Resources has a better idea
of what overburden is on site so a better estimate on the available material can be made by you.
The Financial Warranty appears to be low. This Office will hold off on doing an estimate of
reclamation cost until the other issues mentioned above are addressed. That way, any changes in the
Mine and Reclamation Plans can be incorporated into the new estimate.
L` you need additional information, please contact me at the Division of Minerals and Geology, Grand
Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no.
970,241.1117.
Sincerely, j
G. Russell Means
Environmental Protection Specialist