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i ;. <br /> <br />C7 <br />(Page 21 <br />1 <br />MINE ID # OR PROSPECTING ID # M-86-076 <br />INSPECTION DATE 7/22/99 INSPECTOR'S INITIALS WHE <br />BSERVATI <br />This inspection occurred as part of DMG routine monitoring of permitted operations. Bob Hill <br />accompanied the DMG inspectors throughout the inspection. The permit area is located in an area <br />previously disturbed by pre-law mining activities. The Incas Mine is approved for 9.94 acres <br />affected area. DMG holds 540,358 financial warranty. <br />Signs & Markers Mine identification sign was posted at the mine entrance. Permit area boundary <br />markers were observed. Mining activities appeared to be confined to approved areas. Public <br />access is controlled by two locked gates on the access road. <br />Mill Facility The operator continues to expand the mill building and improve the milling <br />equipment. Concrete for the structures foundation, stem walls and floor is mixed on site. Mill <br />tailings and local rock are utilized in the concrete mix. Portions of the milling equipment had been <br />relocated to a lower mine bench to produce aggregate for the concrete. The minimal quantity of <br />tailings produced from previous operations has been consumed in concrete production. The <br />existing and newly constructed structures appeared well constructed and located away from <br />established avalanche paths and drainage channels. <br />Hydrologic Balance The desired metals occur in low concentrations in sandstone and limestone <br />strata. Analysis reports from the 1998 water samples indicate a pH of 6.78 for groundwater and <br />a pH of 6.38 for surface water. Operator is current with the approved hydrologic monitoring plan. <br />Financial Warranty The existing 540,358 financial warranty was calculated by DMG on 3/1 /95 <br />and includes reclamation costs associated with significantly greater areas than those currently <br />affected, significantly greater quantities of tailings than those currently existing, and significantly <br />larger structures than those currently constructed. Therefore, DMG has determined that the <br />existing financial warranty is adequate to ensure reclamation. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITYISTATEIZIP <br />Bob Hi11 <br />Deadwood Gulch Mining Co. <br />P.O. Box 96 <br />Hasprus. CO 87326 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CHI <br />^ SE <br />^ WOCD ICHI <br />