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<br />MINE ID # OR PROSPECTING ID # M-1977-297
<br />INSPECTION DATE 10/18/02
<br />OBSERVATIONS
<br />INSPECTOR'S INITIALS WHE
<br />This inspection occurred in accordance with DMG's routine monitoring plan for permitted
<br />operations. The Burros Mine is located within DOE lease block C-SR-13, approximately 1.5 miles
<br />north of Slick Rock, in portions of the NW Y4 of Section 29 and in portions of the NE '/4 and SE
<br />'/< of Section 30, T44N, R18W, NMPM, San Miguel County. The permit is approved for 9.9 acres
<br />affected area. Permitted lands includes the following: Burros portal, ore bin and waste rock
<br />stockpile; vent hole, located approximately 880' NE from the portal; the Burros 5 shaft and
<br />associated waste rock stockpile; the Burros 7 shaft and associated waste rock stockpile; and
<br />access road providing access to all portions of affected lands. Mine status is intermittently active.
<br />Affected lands will be reclaimed to support wildlife habitat and rangeland post mining land use.
<br />DMG has previously calculated 519,412 reclamation cost. However, the operator has posted
<br />539,000 reclamation bond with the DOE for mining activities within C-SR-13. Reclamation cost
<br />for the Ellison Mine, Permit No. M-1978-342 and the Hawkeye Mine, Permit No. M-1978-311, also
<br />located within C-SR-13 and permitted to Gold Eagle Mining, Inc., are also covered under the DOE
<br />bond. Of the total 539,000 DOE reclamation bond, 523,250 are designated for reclamation of the
<br />Burros Mine. Therefore, DMG holds 5100 financial warranty and the provision required under Rule
<br />4.2.1(8) operators who have posted a reclamation bond with a federal agency equal to or greater
<br />than the cost of reclamation estimated by DMG.
<br />Permit History: The original permit was issued on 2/1/79, to Union Carbide Corporation for 9.9
<br />acres affected area, 52,500 financial warranty. The entire permit area was affected prior to the
<br />permit application. Additionally, pre-law mining disturbances exist adjacent to and/or surround
<br />much of the permit area. Pre-law disturbances adjacent to the permit area include the Burros 3
<br />shaft and its associated waste rock stockpile and access road. Topsoil was not salvaged from pre-
<br />law mining activities and is therefore not available for reclamation purposes. On 1/9/91, DMG
<br />approved TR-01, revising the mine status from active to intermittently active. On 10/4/93,
<br />financial warranty was increased to 519,000. Operations were in temporary cessation status,
<br />effective 12/4/96. On 3/24/98, the operator informed DMG of permanent cessation of mining
<br />operations and commencement of final reclamation. On 2/16/99, DMG approved TR-02,
<br />addressing permanent structures at the Burros 7 shaft area. Under TR-02, the operator will not
<br />remove the Burros 7 headframe and hoist house, per BLM directives. On 8/18/99, DMG approved
<br />TR-03, accepting available portions of the DOE bond as financial warranty. Under TR-03, DMG's
<br />519,412 financial warranty was approved as 56,250 posted with DOE and 513,162 posted with
<br />DMG. On 8/19/99, DMG approved SO-01, for Gold Eagle Mining, Inc., as successor operator. On
<br />8/28/01, DMG approved TR-04, approving 5100 financial warranty because the DOE bond portion
<br />for the Burros Mine had increased to 523,250.
<br />Portal Area: Mine identification sign was posted on the steel ore bin, near the permit entrance.
<br />Mining and reclamation activities appeared confined to approved areas. Public access to the portal
<br />was controlled by locked steel grate. Portal had been partially backfilled during 1998 reclamation
<br />activities. Evidence of animal or human excavation through the top of the backfill material was
<br />observed. Evidence of portal discharge was not observed, portal appeared dry.
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