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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2001-063 <br />INSPECTION DATE 7113/04 INSPECTOR'S INITIALS RCO.HHP <br />OBSERVATIONS <br />This inspection was performed by the Division as part of its monitoring of permitted metal mines. The operator was contacted <br />about the inspection but was not present during the inspection. <br />There is a small notice attached to the portal door, which includes the permit number and the operator's contact information, <br />but since this site is now permitted, a better permit ID sign must be installed. Please refer to Rule 3.1.12 for the ID sign <br />requirements. The permit boundary is based largely on pre-existing claim boundaries, several of which are still marked. For <br />now these adequately delineate the permit boundary, but better markers should be installed prior to initiating activities at the <br />site. <br />The operator stated that the only activity this season has been a brief visit to assess the site and repair some vandalism to the <br />portal entry. The site features consist of an old access road which shows no sign of recent traffic, a portal which is securely <br />boarded shut, and various old mining-related items left from many years ago. There has been no disturbance and no real <br />activity since this site was permitted in fall 2003. <br />Improvements to be made during the start up of the operation include adding gravel to the roads, deepening the sediment <br />ponds, installing culverts at stream crossings, cutting and removing mature spruce trees to create an operating and ore <br />stockpiling area, and stripping and stockpiling topsoil for reclamation. None of these activities has occurred. <br />The surface water at the site has been periodically sampled, including the portal discharge when it is flowing. A baseline of <br />several consecutive quarters of water samples has been submitted to this office. At the time of this inspection no discharge <br />from the portal was observed. <br />The operator obtained a BLM road permit for using a portion of an existing road as part of the haul road. That portion, lying <br />east and down valley from the permitted area is not included in this DMG permit. The operator stated that he wishes to utilize <br />non-mineralized waste rock from the permitted dump on that unpermitted segment of haul road, to which this office has no <br />objection. The operator should ensure that the BLM also approves of this proposed practice. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. <br />I & E Contact Address <br />NAME Wavne Giesv <br />OPERATOR Midas Mining Co., Inc. <br />STREET PO Box 772 <br />CITY/STATE2IP Philomath, OR 97370 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />