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• (Page 21 • MINE ID 11 OR PROSPECTING ID ~ M-1987-143 INSPECTION DATE 9/26/00 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division to assess the amount of reclamation work performed on this Hard Rock and Metals 110 permit area. The operator was contacted about the inspection and a time was arranged to meet at the site. The operator named on page one was present throughout the inspection, The Division mailed a reclamation cost recalculation to the operator, in July 2000, which indicated a significant increase in bond from the present S2,800 amount. In order to reduce the size of any required bond increase, the operator performed several reclamation tasks, as specified in the approved reclamation plan, and clarified other reclamation questions via providing a written statement from the property owner. All aspects of the site were viewed, and those items deemed to be adequately performed, or documented as being unnecessary, will be deleted from the revised estimate. The site consists of two level benches, one at portal level and a lower one nearer to the stream. The portal level bench contained several mine buildings, mine track, debris and parts. The three buildings will remain after reclamation, per the landowner's wishes. The portal will be closed by an adequate steel door anchored to a timber portal shed. The track will remain as it exists. All debris is to be removed, and it was observed that most of it now gone from the site. Some pipe and track still remain, but it will be hauled off as required. The outslopes of the benches were all at angle of repose and littered with debris. The slopes have largely been pulled up by excavator. The slopes are less steep (averaging 2:11 and the excess has been placed against the toe of the upper bench slope or portal cut slope, as appropriate. (The excavator is still present onsite.l The outer end of the portal shed has been removed, back to the steel door. All loose timbers have been removed from the site. All ore cars have been removed from the site, except one. The large vent fan and water tank near the portal have been removed. The concrete foundation on the upper pad has been buried in place, and graded well. The buried water line to convey discharge is still adequately buried though there may be a question as to how completely it captures all underground water: there is a small seep iust outside the portal doors. This is not a problem, but should be monitored and corrected as needed. The old brick and metal assay building at the S end of the lower bench has been demolished and buried in the slope grading. The timber pile at the stream edge is still present, and may likely remain there, since its proximity to the sediments below the mill may cause an inadvertent release of sediments, metals or mercury if picked up or burned. The mill and tailings have not been disturbed. The mill in the permit area is a designated "historic" structure, but in dilapidated condition. It is not safe to enter and may fall down someday while this permit is still active. The operator has not disturbed it, and has been instructed to not affect it. No bond money is earmarked for any mill building treatments. The unstable slope on the N end of the bench slope, where the old cribbing was falling down, has been cleaned up and stabilized. The timbers are removed or buried, the hanging portion of the tracks has been removed, and the slope graded to 2:1. There is a small amount of staining visible, though it is not ore or tailings. The operator states that it is clay gouge. This portion of the permit will be seeded during revegetation of the rest of the reclaimed area. If the mineralization of the gouge prevents its adequate revegetation, it will have to be dispersed or topsoiled as necessary. The operator does not want to go into final reclamation at this time, but these tasks were carried out to stabilize the site and reduce the reclamation bond amount needed. No seeding has occurred vet, but the operator was encouraged to seed the newly graded areas since revegetation takes so long here. If any of those areas never get redisturbed, then the reclamation is that much farther ahead. For this small area, grass seed is cheaper than the spending time waiting for grass to grow. Some native vegetation is encroaching on its own, including spruce seedlings, willow, grasses and sedges. There were no other observations, and no problems at this time. For all questions or responses to this report, please contact this inspector at the following address or phone: 701 Camino del Rio, Room 125, Durango CO 81301; tel 970/247-5193 or fax 970/247-5104.