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(Page 21 <br />MINE ID # OR PROSPECTING ID # M-1978-311 <br />INSPECTION DATE 10/18/02 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred in response to operator request to document recent reclamation progress. The <br />Hawkeye Mine is located in DOE lease block C-SR-13, approximately 1 mile SE of Slick Rock, in portions of <br />the SW '/< of Section 32, T44N, R18W, NMPM, San Miguel County. The permit is approved for 9.7 acres <br />affected area. DMG has previously calculated the cost of reclamation at 55,000. However, the operator has <br />pasted 522,000 reclamation bond with the DOE for mining activities within C-SR-13. Therefore, DMG holds <br />5100 financial warranty and the provision required under Rule 4.2.1(8) for operators who have posted a <br />reclamation bond with a federal agency equal to or greater than the cost of reclamation estimated by DMG. <br />Affected lands will be reclaimed to support wildlife habitat and rangeland post mining land use. <br />Mine identification sign was posted on the ore bin, near the permit entrance. Affected lands were well <br />contained within approved areas. <br />Mining activities never advanced as anticipated in the original permit application. Mining related disturbances <br />appeared consistent with descriptions of pre-permit disturbances and were limited to one portal with steel <br />grate closure, small portal bench constructed from waste rock material and log cribbing, one steel ore bin, and <br />two track entrance road. Several drill holes were located on the rim bench above and east of the portal. Drill <br />holes were lined with PVC piping. A small sediment detainment basin was located immediately downslope <br />from the portal and waste rock stockpile. <br />Recent reclamation efforts include grading of the portal bench and waste rock stockpile to approximate 3H:1 V <br />slopes which blended with surrounding topography. The final slope of the waste rock material had been <br />pocked with staggered rows of depressions. The offset rows of small basins will detain stormwaters, control <br />erosion, trap sediment and seed, and encourage revegetation. Available topsoil had been replaced over the <br />graded waste rock and the area seeded. Evidence of the seeding was observed. The log cribbing material had <br />been pushed into a previous gully located along the SE side of the waste dump, behind the ore bin. The <br />cribbing materials will aid in slowing runoff, control erosion and trap sediment and seed. Sediment had also <br />been recently cleaned from the sediment basin located below the waste rock stockpile. <br />Financial Warranty: DMG has estimated the current cost of reclamation at 53,761, Enclosed, please find <br />DMG's 11/4/02 reclamation cost estimation, totaling 53,761. Therefore, the existing S5,000 DOE bond and <br />S100 DMG bond appears sufficient to ensure reclamation. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino <br />del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME Don Coram <br />OPERATOR Gold Eagle Mining. Inc. <br />STREET P.O. Box 3007 <br />CITY/STATE/ZIP Montrose. CO 81402 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />