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(Page 21 • <br />MINE ID # OR PROSPECTING ID # M-90-059 <br />INSPECTION DATE 8128197 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred in accordance with DMG routine monitoring policy. Eldorado-Pilot is a <br />110(1) type permit and is approved for 0.11 acres affected area. DMG holds a CD in the amount <br />of S 1,000 as financial warranty. DMG inspectors did not encounter mine personnel at the site, no <br />activities were observed during the time of this inspection. <br />Signs & Markers -Mine identification sign, required by Rule 3.1.1211-, was not observed. Affected <br />area perimeter markers, required by Rule 3.1.12(2), were not observed. <br />Mine Facilities -Mining related disturbance was limited to portal and waste rock stockpile. Affected <br />area was visually estimated at 100'x 50' area. Due to the absent perimeter markers, DMG <br />inspectors could not verify that mining activities were contained to approved areas. However, <br />affected area did not appear to be greater than the 5000 sq ft or 0.11 acre area approved under <br />the permit. Water was observed draining from portal, portal discharge estimated at < 1 gpm. <br />Permit documentation indicates that the portal and waste rock stockpile pre-dated permit issuance. <br />Waste rock stockpile appeared to contain approximately 300 cy of low grade ore and waste rock <br />material. Toe of waste rock stockpile extended into wetlands area and was in contact with water. <br />Hydrologic Balance -Potential for adverse impact to hydrologic balance may exist due to pyritic <br />content of low grade ore and waste rock which has been placed within the wetland area. Rule <br />3.1.5(10) states that all mined material to be disposed of within the affected are must be handled <br />in such a manner so as to prevent any unauthorized release of pollutants to the surface drainage <br />system. Rule 3.1.5(5) states that all refuse and acid-forming or toxic producing materials that have <br />been mined shall be handled and disposed of in a manner that will control unsightliness and protect <br />the drainage system from pollution. Rule 3.1.6(1) states that disturbances to the prevailing <br />hydrologic balance of the affected land and of the surrounding area and to the quantity or quality <br />of water in surface and groundwater systems both during and after the mining operation and during <br />reclamation shall be minimized... Placement of waste rock material in direct contact with surface <br />drainage of the wetlands area does not appear to be in compliance with the above referenced rules. <br />Final use of waste rock is not clearly stated within the permit. Portions of the permit <br />documentation indicate that 1 /3 of the waste rock will removed from site. Other documents <br />indicate that waste rock may be utilized to backfill portal or utilized to fill underground workings. <br />Please clarify final use of waste rock material. <br />I & E Contact Address <br />NAME Gil Moser <br />OPERATOR Gil Moser <br />STREET 817 N. Watson <br />CITY/STATE/ZIP Farmington. NM 87401 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD ICHI <br />^ OTHER <br />