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;~ . _ <br />(Page 2) • <br />MINE ID # OR PROSPECTING ID !J M-80-171 <br />INSPECTION DATE 8/28/97 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG routine monitoring program of permitted operations. Bachelor Mine- <br />Khedive Level is approved for 1.85 acres affected area. DMG holds 51,700 financial warranty. Mr. Carl <br />Dismant accompanied the DMG inspectors throughout the inspection. Mining operation appeared dormant. <br />Records -Annual reports, submitted by the operator, indicate that operation has been dormant for several <br />years. However, operator has not filed Notice of Temporary Cessation, as required by Rule 1 .13.5. Please <br />review Rule 1 .13 and submit the Notice, as appropriate. Please note that Rule 1 .13.7 provides a Substitute <br />far Notice of Temporary Cessation. <br />Sions & Markers -Mine identification signs and affected area perimeter markers, required by Rule 3.1.12, <br />were not observed. Due to absent permit boundary markers, DMG could not verify that all mining related <br />disturbances were contained within the 1.85 acre permit area. However, mining activities appeared to be <br />limited to approximately 2 acre area. <br />Mine Facilities -Public access was controlled by locked chain across access road. Access road at Dexter <br />Creek crossing was partially washed out, remainder of access road was well maintained. Affected area <br />consisted of a portal, Butler building, and waste rock stockpile. <br />Public access into portal was controlled by locked gate closure at portal mouth. Portal shed and gate were <br />well maintained. Operator indicated that Khedive portal was originally established in the late 1890s. Portal <br />discharge was visually estimated at 3 cfs, discharge appeared clear, no iron staining evident. Aquatic <br />vegetation was well established in discharge outflow. <br />Waste rock stockpile terminated along the south bank of Dexter Creek. Evidence of erosion of stockpile, <br />by Dexter Creek flow, was observed. Permit documentation indicates that at the time of permit issuance, <br />waste rock stockpile was located at its current location and contained approximately 80,000 tons. Mining <br />and Reclamation Plans indicate that the 80,000 ton waste rock stockpile would be removed from site and <br />processed at the Camp Bird Mill. Camp Bird Mill is no longer operating and therefore cannot receive waste <br />rock from the Khedive portal. Operator's commitment to removal and reclamation of the stockpile is a <br />permit condition. Additionally, present location and configuration of the stockpile is not compatible with the <br />performance standards of Rules 3.1.5(3) and (5) and 1101, 3.1.6(1) and (31. <br />Financial Warranty -Review and recalculation of the required bond for reclamation of this operation will take <br />place over the next few months. A detailed estimate of the recalculated cost, based on the approved mining <br />and reclamation plans and conditions observed during the inspection, will be forthcoming. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Carl F. Dismant <br />Bachelor Silver Mines Comoanv <br />P.O. Box 965 <br />Ourav. CO 81427 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />[} WOCD ICHI <br />^ OTHER <br />