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(Page 21 MINE ID # OR PROSPECTING ID # M-1978-342 INSPECTION DATE 3/15/02 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its monitoring of Hard Rock 1 10 non-DMO permits. The operator was contacted about the scheduled inspection, but was not present for it. During the phone call to notify the operator of this inspection, the operator stated that there was no permit ID sign posted at the site. Observations made during the inspection confirmed that no ID sign was present, nor were many of the markers. The site's easy accessibility to unauthorized persons traveling off the county road accounts for the operator's difficulty in keeping signs posted at the site. However, since the site contains a steel building, overhead electric powerpoles, steel portal shed and steel grated portal entry, there are numerous locations where an ID sign could be securely affixed. The lack of an ID sign is noted as a problem in this report. The operator must post a sign Icontainino all the required information) and send this office evidence of such posting, by the date shown on the last page. While the operator is onsite performing this corrective action he should verify that all nine perimeter boundary corners are also marked A photo of the new sign must be sent to this office, but photos of all markers is not needed. There has been intermittent activity at this site. The dump configuration, though still contained within the permit area boundary, has expanded considerably from its depiction on the permit map. It is rough on the surface and contains some amount of new waste rock, a small portion of which exhibits mineralization. The operator is cautioned against expanding the dump farther to the east, since the toe of the dump in its present location is actually on the permit boundary line (the marker identified as "ELL 4" was seen there.) During reclamation, the toe could be inadvertantly pushed out, offsite, or it could slough as it weathers during the coming years, which is also offsite damage. Offsite damage, whether active or passive, or during mining or reclamation, is a possible violation. The dump contains a small amount of debris, but no observed contaminants. There were no material stockpiles. A steel shop building containing an ore haul truck is present, as well as the portal shed constructed of steel sets. The grated door to the underground workings was found unlocked and open, allowing unauthorized access underground. The operator should secure the entry to prevent this potential risk. The topsoil berm was observed in its mapped location. It is vegetated and stable. Other portions of the site have self- revegetated, usually with rabbitbrush Ian acceptable rangeland species), but also with halogeton la weed, which is toxic to sheepl. Weed control is best carried out on a regular basis to keep infestations in check. Regular moniroting at least should be carried out. Waiting to control weeds until final reclamation often results in more difficult and expensive control, and more time required for reclamation. No noxious weeds were observed. At this time, there is no problem noted. The operator should ensure that the topsoil does not become infested. The bond amount has not been recently reviewed by the Division. In 1999 a technical revision was approved allowing a portion of the bond required for this mine to be posted to the federal government, and a portion to this Division. The combined total of the two bonds must be found to be an adequate amount to perform final reclamation. There were no additional items observed. All responses or questions about this inspection report should be directed to this inspector at the Division's Durango Field Office. The address is: Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301; telephone 970/247-5193, or fax 970/247-5104. I & E Contact Address NAME Don Coram OPERATOR Gold Eagle Mining, Inc. STREET P.0. Box 3007 CITY/STATE/ZIP Montrose, CO 81402 cc: Tom Gillis, DMG ^ CE ^ BL p FS ^ HW ^ HMWMD ICH) ^ SE ^ WOCD ICHI ^ OTHER