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(Page 21 <br />MINE ID # OR PROSPECTING ID rY M-1982-020 <br />INSPECTION DATE 9/2/03 INSPECTOR'S INITIALS RCO,HHP <br />OBSERVATIONS <br />This inspection was performed by the Division as part of its monitoring of Hard Rock and Metals 110 permits. The <br />operator was contacted about the inspection, but was not present during the inspection. The inspectors named on page <br />one were present throughout the inspection. The site was inactive but secured at the time of the inspection and no mine <br />personnel were present. <br />The site includes a mill building, which is not fully used. It houses the dry room and hoist to access the underground <br />workings, as well as an assay lab, which all may be utilized in the presently-approved plan. The building also contains the <br />equipment necessary for operating a milling circuit, which is capable to be utilized as either a flotation or cyanide process. <br />There are limited quantities of chemicals in the building, consistent with use in the assay lab or with limited use in a <br />flotation process. The building's contents were in fair to good condition, and the building appeared to be sound. <br />The permit plan is also approved to allow a modification to begin using cyanide, with the proper notifications to this office, <br />and the required change of permit type to a 110 DMO. Onsite processing presently does not include cyanide, the permit is <br />not a DMO, and no cyanide is present at the site. There is no fuel presently stored onsite. <br />The underground workings are accessed by a nearly vertical shaft south of the mill/hoist building. The opening is secured <br />against unauthorized entry by a headframe with locked cage. The secondary escape was locked also. The underground <br />workings are flooded, are usually remain that way when the mine is inactive. When the operator dewaters the mine, it is <br />pumped into the onsite lined pond north of the mill/hoist building. The pond is fenced and locked, with signage warning of <br />cyanide (though it does not contain cyanidel. The liner is in good condition. There is about 8 to 10 feet of freeboard. <br />There is a tailings pond in the NW part of the site. No tails have been placed there for many years. The earthen dam <br />exhibits good revegetation and no erosion. The topsoil stockpile also exhibits good revegetation and no erosion. The <br />operator, who also owns a heavy equipment company, also has an equipment storage yard adjacent to the E side of the <br />permitted area. It is not part of the permit area, and its use is not related to this permitted operation. <br />There is an ore loading hopper and conveyors on the W side of the mill/hoist building. No ore is stockpiled, though small <br />amounts spilled in the past are still present. There was, however, a mined material from a different mine piled where the <br />haul trucks dumped it W of the building. It appears to be about 7 dump loads, containing about 50 cu yds, of blasted <br />unsorted muck from the Brown Derby Mine (see M-1999-074). In a phone conversation with the operator subsequent to <br />this inspection, the operator stated that this material was brought here recently to store it for a short period until it could be <br />crushed and removed. The Rule 3.1.519) normally requires an operator to provide a notice to this office prior to importing <br />offsite generated material. Given that the material is benign and in limited amount, imported recently and one-time only, <br />will not be processed (other than crushing), will require no chemical use onsite, and will be removed before winter, this <br />office will not require the operator to provide a notice or apply for a revision at this time. However, if this is to become a <br />regular event or involve larger quantities, a notice or revision may become necessary. <br />The bond is S9,100, in the form of 3 CDs. The reclamation plan was reviewed, and the bond amount appears to be <br />adequate to perform the limited reclamation still outstanding. <br />No further items were observed, and there were no problem noted at this time. Responses to this inspection report should <br />be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob <br />Oswald; phone no. 970-247-5193. <br />I & E Contact Address <br />NAME Melvin R. Gvdesen <br />OPERATOR _Iss;;~_ <br />STREET 229 CR 11 - #21 <br />CITY/STATE/ZIP Gunnison. CO 81230 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD (CHI <br />