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(Page 21 <br />MINE ID # OR PROSPECTING ID 1! M-1978-091 UG <br />INSPECTION DATE 9/3/03 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 DMO permits. The <br />operator was contacted about the inspection, and a time was arranged to meet at the site. The operator'srepresentatives <br />and DMG inspectors named on page one were present throughout the inspection. <br />There were 21 one-ton ore sacks stored at the Vickers Ranch parking lot on the day of the inspection. This location is not <br />within the permitted area and is not an approved environmental protection facility, but the storage site was approved in <br />2002 by the Mined Land Reclamation Board for short-term storage of sacked ore. <br />The required permit ID sign was posted at the entrance to the lower 16 level) portal area. The 6 level portal was active at <br />the time of the inspection. There has been no change in the portable structures at the site. Equipment noted during the <br />inspection included diesel generator and compressor, crusher and conveyors, underground muckers and haulers, wheel <br />loader. and flatbed haul trucks. <br />Stockpiling and processing of ore is ongoing on the pad. There was a stockpile of ore on the pad, presumably drying and <br />waiting to be crushed, containing about 25 cubic yards. There were 26 filled one-ton sacks on the south part of the pad, <br />waiting to be hauled down to Vickers Ranch parking lot. Pad surface drainage is still directed toward the sump immediately <br />south of the portal. No discharge from the portal was observed. The breach in the berm at the outer shoulder of the pad, <br />noted in 2002, which allowed contaminated drainage from the pad surface to flow down the face of the dump, has been <br />filled and drainage no longer leaves the surface. Precipitation is the cause of the water on the pad surface, though it <br />becomes mineralized in contact with the ore on the surface, making it important that drainage be monitored, the surface be <br />maintained to direct flows to the sump, and that the sump capacity be maintained. <br />The dump face exhibits minor erosion, but is mainly stable. A few volunteer plants have grown on the face, possibly a type <br />of wormwood. The operator is encouraged to begin some revegetation on the face, since the face is not to be redisturbed <br />and it will help further stabilize it. Establishing vegetation in this medium may prove difficult, and beginning the process <br />sooner could be advantageous. <br />The operator mentioned the recent trouble in stabilizing the existing drift at this level, and the possible need for driving <br />another drift just north of this one. This may require a technical revision, the fee for which is 5875. It should be noted that <br />a new drift will generate large volumes of waste rock, which may be difficult to dispose of on the small pad area. Some of <br />it may be used to backfill the existing portal, some to buttress the cut slope at the borrow area (north end of pad), some to <br />raise the pad elevation, and possibly some carefully placed on the dump face to enhance vegetation success. <br />The operator has maintained the drainageway on the south end of the pad so that no mineralized muck has been placed or <br />allowed to slough there. This is important in minimizing the contact of surface flows with mining-related contaminants. <br />Water quality sampling occurs downstream from the dump location, and the operator is reminded that 2003 samples must <br />still be taken and their analyses submitted. Please do not wait until the gulch is dry later this season. <br />The level 3 portal area was also inspected. It remains inactive and unchanged. There are mining-related debris items all <br />over the 2 dumps which comprise this area, which will be reclaimed. The portal was secured by locked grate. <br />No further items were observed or discussed during the inspection. Responses to this inspection report should be directed <br />to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; <br />phone no. 970-247-5193. <br />I & E Contact Address <br />NAME Kve Abraham <br />OPERATOR LKA International, Inc. <br />STREET 3724 47"' St Ct NW <br />CITY/STATE/ZIP Gio Harbor WA 98335 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />