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• IPage 21 • MINE ID N OR PROSPECTING ID // M-2001-063 INSPECTION DATE 9/10/01 INSPECTOR'S INITIALS RCO This pre-operation inspection was performed by the Division as part of the Division's review of the 11012) application for this site. The operator was not present during the inspection. The site is located immediately above the confluence of Henson and Red Cloud Creeks on gently to steeply sloping land. Much of the area is timbered with mature spruce. The above-mentioned creeks cross the site. Pre-existing mining disturbance is on the site, including unimproved roads, a portal, a small waste dump, and very minor amounts of debris. There is no new disturbance, equipment, stockpiles or other mining disturbance. The permit application included maps of the site, which depicted natural and manmade features, and using claim corner as points of reference. Several of these claim corners were marked in the field, which helped to understand the layout of the site. However, there were numerous markers (flagging and paint marks) which did not appear to match the configuration of the site layout or claim boundaries. The general configuration of the roads onsite did not appear to match the map. This is not a problem, but hopefully will be clarified in the operator's adequacy response (i.e., revised maps!. There is a single portal to the underground workings of this mine. It was boarded up to prevent unauthorized entry to the mine. The operator's notice of permit application was posted there. There are old tracks leading out of the portal onto the waste dump. There was moss among the signs of ground moisture immediately outside the portal, but no evidence of flowing or impounded surface water. The waste dump material exhibited nearly no evidence of pyrite, either on the rock] itself or on the ground immediately downhill from the dump. The proposed ore pile area was approximately located, apparently on a gently sloping, timbered bench. No roads were seen leading to it. Construction necessary to prepare the area will include tree removal, building a haul road, runoff control berm Ipossibly both upslope and downslope from the pad!, liner installation, and possibly a loadout structure. No sign was observed of the old cabin in the proximity (marked on the 1889 map!. The small area called "Area 111 " on the new maps is apparently up near the high point of the site in the northern corner. The so-called sediment ponds were not positively located. A series of small depressions in the borrow ditch on the high side of the road below the portal may be what the applicant is considering to be the ponds. They are old, not very deep or large, and do not have a controlled outlet (except for a broken concrete culvert, 6" diam.j. This will have to be clarified. The site is accessed from a dirt two-track above the bridge. An old trail splits off from this track below the waste dump and leads up to another old portal on the talus slope (off the permit area and these claims, and not to be affected). As noted above, two natural drainages cross the area, plus a third drainageway which is a former path of Red Cloud Creek. There is the presence of somewhat wet areas in the timber and meadows below the portal and dump. The operator must clearly describe and commit to operating carefully in the vicinity of these wet areas, or site degradation could result. There were no further observations during the inspection. At this time there are no problems. All responses or questions about this inspection report should be directed to this inspector at the Division's Durango Field Office. The address is: Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301; telephone 970!247-5193, or fax 970/247-5104. I & E Contact Address NAME OPERATOR STREET CITY/STATE/ZIP Wavne Giesv Midas Mining Co. Inc. P.0. Box 772 Philomath.OR 97390 cc: Tom Gillis, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD ICHI ^ OTHER cc: Les Charles, Midas Mining Co. Inc., 710 N. 11th St., Gunnison, CO 81230 cc: Julie Coleman-Pike, BLM, 216 N. Colorado Ave., Gunnison, CO 81230