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(Page 21 MINE ID # OR PROSPECTING ID # M-1980-055 HR INSPECTION DATE 10/8/03 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its monitoring of Hard Rock and Metals 110(2) permits, and to review changes approved recently in technical revision TR-01. The operator was contacted about the inspection and a time was arranged to meet onsite. The operator's representatives named on page one were present during the inspection. The required permit ID sign was posted on the gate to the site. TR-01 included several changes to the permitted area boundary, and the boundary was not yet fully marked. This was not a problem at the time of the inspection, but the operator must ensure that the boundary of the permit is adequately marked by next field season. Markers should be durable and visible, and should at least be placed at the corners. Additional markers between corners are recommended if sighting from corner to corner is not possible. The access road from the county road to the portal area is also included in the permitted area acreage, though the road itself does not need boundary markers. The access road exhibited several patches of knapweed, in the borrow ditches and the roadway edge. It is suspected that the weeds were Russian knapweed, one of the species listed on the State noxious weed law, which requires that they be controlled. The patches were fairly small still, though they may spread quickly due to drought years and/or by vehicles along the road. Mr. Fisher observed the weeds, and stated that they will be treated this fall, and monitored during coming years, until they are controlled. He is a licensed applicator, and is trained to use the most effective chemical. The weeds are not a problem at this time, but the operator should report what treatment methods were used this year to control them. (This may be reported as part of the annual report, or in a separate correspondence.) The continued presence of the knapweed and size of patches will be monitored in future inspections. Recent rains have eroded gullies in the access road. The operator should work to ensure that roadways, shoulders, and borrow ditches are stable, and that they do not contribute to odffsite sediment transport, due to poor maintenance. The waste dump still contains the portal, steel portal shed, steel shop building, upland runoff diversions, and stormwater runoff control structures below the dump. The dump slope is steeper than 2:1 presently. The shop is not secured, and may be scheduled for removal from the site Iby the operator) if it becomes a liability through vandalism or degradation. The fuel tank near the building was empty. The shop contained a 2-yard loader and waste oil. No contaminated soil was seen outside the shop. The margins of the dump pad were well bermed. Site clean-up has resulted in a neat site with no debris or parts present. The topsoil stockpile was in stable condition. The adit is closed temporarily by earthen fill at the mouth of the portal shed. This is adequate to safeguard the opening, but should be monitored to ensure it remains closed. Final closure will consist of removal of the steel shed, backfilling the adit with rubble and debris, and earthen fill in the adit and against the vertical face up. If the face up is stable, the upper portion of it may remain; it may not have to be completely covered by backfill. The primary vegetation on the dump pad was halogeton. This is not a noxious weed, and the BLM does not regard it as a problem. The operator may consider controlling it at some point before final revegetation efforts begin, to improve the success of revegetation establishment. The bond amount is S22,869. This amount is due to be reviewed after the updated reclamation map is submitted in the near future. However, the present amount is estimated to be adequate at this time. No further items were observed or discussed during the inspection. No problems were observed onsite, and the operator has corrected all outstanding problems noted in the file. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970-247-5193. Cont.