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(Page 21 MINE ID # OR PROSPECTING ID # M-79-787 INSPECTION DATE 7/20/99 INSPECTOR'S INITIALS yy(~E OBSERVATIONS This inspection occurred in accordance with DMG routine monitoring program for permitted operations. The Ruby Trust Mine is a 11012) type permit, approved for 2 acres affected area. DMG holds Sg,481 financial warranty. The permit area is located approximately 8 miles SW of Ouray, at the outlet of Governer Basin, in portions of the SW 1/4 of the SW 1/4 of Section 16, T43N, R8W, NMPM, Ouray County. Records indicate that the permit area includes pre-law mining disturbances dating from the late 1800's. Signs & Markers Mine identification sign, required by Rule 3.1.1211), was posted at the mine entrance. Mine entrance gate was locked. Affected area perimeter markers, required by Rule 3.1.12(2), were not observed. DMG previously identified absent affected area markers as a Problem in the inspection report generated from the 8/28/97 inspection. DMG records do not indicate that the operator has posted the required markers, as requested in DMG corrective actions from the 8/28/97 inspection. Affected Area Areas being utilized by the operation and defined as "affected lands" by Rule 1 .1(4) totaled approximately 4 acres. Affected lands extended E - W from the mine entrance gate to the portal, and N - S from Sneffels Creek to the upper-most access road. Affected areas included 3 portals, waste rock stockpiles, ore stockpile, sediment pond, 4 buildings, equipment storage and parking areas, and 3 connecting access roads. DMG interprets the apparent exceedence of the approved 2 acre affected area as a possible violation of permit conditions, the Act and Rules. Hydrologic Balance The waste rock mine bench, containing pyritic materials, defined the north bank of Sneffels Creek from the portal to the entrance gate area. Approximately 700' of the creek's north bank has been buried in waste rock. Portions of the creek channel have been constricted by the waste rock material. The toe of the steep waste rock embankment terminated at or below the existing creek flow. Additional waste rock and ore had been stockpiled on the mine bench adjacent to Sneffels Creek. Drainage control for the pyritic ore and waste rock materials was not observed. Waste rock, ore and mining related debris were observed within the channel of Sneffels Creek. Evidence suggests that waste rock, debris and ore materials generated subsequent to permit issuance, have not been handled in a manner which minimize disturbances to the hydrologic balance, as required by Rule 3.1.6. Please also review Rules 3.1.5(5), l10) and (111. DMG identified the waste rock/ore/debris issue as a Problem in the inspection report from the 8/28/97 inspection. Corrective action was to submit a Technical Revision to the permit within 60 days, containing plans for removal of all waste rock, debris and ore materials, handled or disturbed subsequent to permit issuance, from and immediately adjacent to Sneffels Creek. DMG records do not indicate that the operator submitted the Technical Revision required by DMG corrective action. Erosion/Sedimentation & Off-Site Impact Uncontrolled surface drainage has resulted in significant erosion of affected lands and off-site transport and deposition of sediment. Uncontrolled affected area drainage have transported sediment beyond the entrance gate, across the county road providing access to Governer Basin, and to the creek bank of Sneffels Creek. The abrupt termination of the sediment delta at the bank of Sneffels Creek indicate that significant quantities of eroded sediment have been deposited in Sneffels Creek. The Act and Rules require an operator to control erosion and sedimentation of affected lands and minimize off-site impacts. Please review Rules 3.1.513), 3.1.6(1) and 3.1.6(31. Mine Discharge One of the portals, a decline, was flooded and discharging. Mine drainage was conveyed to a sediment pond, located at the far SE corner of the affected area. The sediment pond was discharging directly into Sneffels Creek through a 6" PVC pipe. Pond discharge was visually estimated at < 30 gpm and appeared clear with no evidence of mineral staining. DMG records indicate that NPDES Permit No. CO- 0037206 may have been issued by CDPHE-WOCD for the operation.