INSPEC15575

• Permit No: M1982020
• IBM Index Class Name: Inspection
• Doc Date: 7/12/2004
• Doc Name: Insp Rpt
• From: DMG
• To: Melvin R Gydesen
• Inspection Date: 6/10/2004
• Media Type: D
• Archive: No

(Page 2)
MINE ID # OR PROSPECTING ID # M1982-020
INSPECTION DATE 6-10-2004
INSPECTOR'S INITIALS SSS
This was a partial inspection conducted to familiarize this inspector with this site and it's current conditions, due to the recent
operations to reactivate the mine and mill. Russ Means, DMG; and Mick Carter, operator for the permittee accompanied.
The current process of reactivating the mine includes rehabilitation of the old secondary escapeway shaft located at the
southwest corner of the tailings pond. The old shaft had been caved and was reopened and lined with steel tanks laid end to
end and welded together. Holes were cut in the ends of the tanks to allow a ladder to be installed through the steel lined
manway, from the workings to the surface. The original mine plan addresses creation of an escapeway in the southeast portion
of the original 2 acre permit area, but no details were ever submitted, and the reclamation of such was never addressed or
included in the reclamation cost estimate. Therefore, the operator needs to submit a technical revision to DMG addressing the
construction and reclamation details for the escapeway. Those details need to include revised permit maps and reclamation
cost fgures for the escapeway (if the escapeway is to be sealed).
An above ground diesel fuel tank was brought to the site and hooked up to supply the generator. This tank was located beside
the engine building and was not installed in a spill containment structure. The operator will need to include details of the spill
containment structure in the technical revision required above. The details must show the size and location of the tank and
give the construction specifications to show that the spill containment is adequately sized to contain all the fluid of the largest
tank to be stored within it. The permittee will need to ensure that this tank and all hazardous material containers stored on site
are located in adequate spill containment facilities. This includes drums and buckets of hazardous materials, batteries, etc.
The permittee is storing explosives on his property near the site for use at the mine and use in his construction business. The
off-site storage is acceptable due to the explosives not being used exclusively for the mining operation, The operator indicated
that the BATF had recently inspected and approved the explosives magazines.
As noted in the previous inspection report, there is a stockpile of rock that has been imported from the Brown Derby Mine. This
material was to have been crushed and removed before the 2003 winter, but this was not accomplished. DMG has been
lenient regarding the importation and stockpiling of this material without notice to DMG nor revision to the permit. This material
must be removed from the site, either crushed or uncrushed, by August 31, 2004.
The permittee has also indicated an interest in importing material from other mine sites for processing at this mill, potentially
becoming a custom mill. A memorandum of understanding between DMG and the Colorado Department of Public Health and
Environment (CDPHE) and the law both say: (A) counties decide whether a facility can become a custom mill, and (B) CDPHE
oversees the certificates of designation (as a custom mill). In the case of mining, where certificates of designation show the
ores to be ordinary ores -not uranium ores and not mine wastes being re-processed that might contain foreign chemicals -they
sometimes have deferred to DMG for mills that are part of aDMG-permitted operation.
County Custom Mill Designation is a feature of local land use regulations or zoning. It secures land use decisions in the
hands of the counties, and allows the county to impose local regulations on issues like noise, traffic, hours of operation,
aesthetics, etc. In other words: the state, through certificates of designation and reclamation permits cannot impose a
custom mill upon a county if the county doesn't want it.
Therefore, before Lucky Strike imports off-site ore, they must:
1. Gain county approval for a custom mill
2. Contact CDPHE -Solid Waste Disposal Section -Glenn Mallory -regarding the need for getting a certificate of
designation for the ores chosen.
3. If CDPHE decides to test the ore and provide a certificate of designation, they have that authority. However, they
cannot cause ores to be deposited onto a DMG permitted site without a proper bond Covering disposition and reclamation
related to disposal of the mill waste related to that designated material.
4. But, if CDPHE defers to DMG to regulate the waste rock under the Lucky Strike permit, then DMG will require that the
permit be revised to include a commitment to sample all potential ores to be imported and submit analysis results to DMG.
DMG will:
a) evaluate the ore for toxic and/or acid forming materials and determine if it must be processed and disposed of
within 180 days of importation
b) evaluate the waste so see that it is only inert rock (not toxic or acid forming material), and;
c) bond for reclamation of the disposal area and handling of reagents and chemicals required for the operation.