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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1980-178 <br />INSPECTION DATE 2-14-2002 INSPECTOR'S INITIALS SSS <br />OBSERVATIONS <br />This was a routine inspection conducted as part of on-going monitoring for permitted mine sites and to evaluate the current <br />site conditions for use in updating the reclamation cost estimate to determine if the current reclamation bond is adequate. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />No significant erosional features were noted on the affected areas of the site. <br />No significant infestations of noxious or other problematic weeds were noted on site during this inspection. <br />The current approved mine plan indicates a mining depth of 15 feet and that the pit slopes would be graded to 3H:1V as part <br />of the mining operafion as mining progresses. However, mining is not being conducted according to the approved plan. The <br />working face of the pit (north highwall) is estimated at 40 feet high. The upper 10-15 feet is graded to an estimated 3H:1 V while <br />the lower portion of the highwall is near vertical. The east pit slope was regraded and reseeded at one point in time. That <br />slope is now under a large pile of fines with a slope estimated at 2H:1 V. The south and west pit sides currently daylight to <br />drainages. The current increased pit depth and highwall configuration is not in compliance with the mine plan. This is listed <br />as a problem on the last page of this report with corrective actions that must be taken by the correction date specified. The <br />oversteepened pit slopes were listed as a problem in a 1994 inspection report and were reduced subsequent to that report. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved <br />reclamation plan, DMG has updated the reclamation cost estimate (copy enclosed). Clearly, the site is currently under-bonded. <br />Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must <br />be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon as <br />possible and contact our office if any calculation errors are noted. <br />There are actually two reclamation cost estimates enclosed. The estimate with the total bond amount of $17,107 is calculated <br />far reclamation of the site based on the current approved mining plan, including mining at the 3H:1V grade, affecting <br />approximately 9.6 acres and replacing fines (growth medium) and revegetating the entire 9.6 acres when mining is complete. <br />This is the amount of financial warranty that is due to DMG within 60 days. Additionally, a technical revision to address the <br />increased mining depth will need to be submitted and the pit slopes will need to be reduced to 3H:1 V within that 60 day period <br />and maintained there throughout the life of the mine. <br />The second estimate, with a total bond amount of $12,146 is calculated based on current site conditions. This estimate is <br />based on a maximum of 5 acres disturbance with a 500 foot long by 40 foot high north highwall mined at an average grade <br />of 1H:1V that is reduced by cut and fill methods to 3H:1V; an east highwall that is assumed to average 400 feet long by 20 feet <br />high that is reduced by full backfill with the stockpile of material at the crest of the slope. Fines replacement and revegetation <br />is based on 5 acres affected area. Since a technical revision needs to be submitted to correct the non-compliance with the <br />mining plan, the revision could be used to address additional changes such as mining with steeper highwalls and reducing them <br />by cut and fill methods, limiting disturbance to 5 acres and a depth of 40 feet (requiring some reclamation to be completed prior <br />to additional mining). Many options exist to change the approved mine plan to fit the current mining conditions that seem to <br />be preferred by the operator. The operator is encouraged to discuss these options with DMG staff prior to revision submittal. <br />Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. <br />1 & E Contact Address cc: <br /> ^ CE <br />NAME Jean Moores ^ BL <br />OPERATOR Moores Mining. Ran ching & Mill ^ FS <br />STREET 32906 Highway 14 1 ^ HW <br />CITY/STATE/ZIP Gateway. Colorado 81522 ^ HMWMD (GH) <br /> ^ SE <br /> ^ WOCD (CH) <br /> ^ OTHER <br />