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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-iggn-nai <br />INSPECTION DATE: ng/~4Jna INSPECTOR=S INITIALS: TAS <br />1. A site inspection of the Bates-Hunter Mine and Golden Gilpin Mill was conducted as a follow-up of the Division's <br />previous inspection on July 7, 2004. Present during the inspection was Mr. George Otten. The primary purpose of the <br />inspection was to conduct an inventory of milling reagents and chemicals stored at the Golden Gilpin Mill. There are no <br />chemicals or reagents stored at the water treatment plant adjacent to the Bates-Hunter Mine. <br />2. Mr. Otten has filed a notice indicating that there will be at least 180 days or more of activity at the Mine and Mill <br />facilities beginning October 1, 2004. Based on this notice, the status concern noted in the Division's previous inspection <br />report of July 7, 2004 has been abated. <br />3. There was a small volume of stormwater runoff in the upper holding pond immediately south of the Golden Gilpin Mill <br />Building. The detained liquid was reddish-orange in color, indicating a potential for acid mine drainage. A digital <br />photograph of the detained liquid was taken and is attached to this report. The historic tailings on site have the <br />appearance of pyritic tails. The operator has committed to install a final Flotation cleanup circuit to remove pyrite from <br />any future ore processed on site, The existing tailings are in close proximity to a perennial stream, North Clear Creek, <br />and have been graded to form a series of settling ponds. In order to minimize the potential for erosion of tailings and/or <br />runoff from stormwater or future process water into the stream the operator has installed a significant buffer between the <br />tails and the stream in the form of a berm constructed of non-pyritic, soil material. This inspector notes that the berm is <br />stable, well vegetated, and sufficient to contain any tailings, effluent, or runoff from the site. There was no evidence of <br />any water quality concerns in the stream. This inspector noted several brook trout swimming vigorously in the stream <br />adjacent to the tailings facility. During final reclamation, the tailings-settling ponds will be re-graded to natural contours <br />such that runoff waters will not be detained. Available soil materials will be re-spread and the site will be re-vegetated <br />with a grass mix. <br />4. An inventory of millings reagents and chemicals at the Golden Gilpin Mill was taken and is listed below. The Division <br />has verified that the reagents and chemicals stored at the Golden Gilpin Mill facility are neither toxic or hazardous in their <br />current concentrations and volumes. The inventory includes milling reagents and chemicals stored outside the mill <br />building as well as inside the mill building. The reagents and/or chemicals are being stored in heavy plastic or metal <br />drums. Within the Mill Building, the reagents and/or chemicals are stored on curved, and sloped concrete Floor with <br />collection sump. In the event of a leak or spill, the liquid or dry powder reagents would be routed to the collection sump. <br />The settling ponds south of the Mill Building provide an additional level of containment. <br />Stored Outside of Mill <br />1 - 55 gallon drum of sodium silicate <br />1 - 55 gallon drum of 404 aero promoter <br />4 - 55 gallon drums of aero froth 65 <br />1 - 55 gallon drum of pine oil <br />3 - 55 gallon drums of aero froth 31 <br />i - 55 gallon drum of motor oil <br />Stored Inside Mill <br />2 - 55 gallon drums Zll Zanthate, powder <br />1 - 55 gallon drum 317 Zanthate, powder <br />1 - 55 gallon drum aero zanthdate <br />1 - 5 gallon pail 411 powder <br />1 - 55 gallon drum Ell potassium amyl zanthate <br />2 -gallons HCL <br />3 - 20 gallon hyso-caustic soda <br />1 - 50% sodium hydroxide solution <br />3 - 55 gallon Rayon grade Lime <br />1 - 50 Ib bag of potassium nitrate, powder <br />