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<br />MINE ID # OR PROSPECTING ID # M-1981-021
<br />INSPECTION DATE 10/8/03 INSPECTOR'S INITIALS RCO
<br />OBSERVATIONS
<br />This inspection was performed by the Division as part of its monitoring of Hard Rock and Metals 112 permits, and to
<br />review changes approved recently in technical revision TR-03 and acreage reduction AR-01. The operator was contacted
<br />about the inspection and a time was arranged to meet onsite. The operator's representatives named on page one were
<br />present during the inspection.
<br />The required permit ID sign was posted on the gate to the site. TR-03 and AR-O1 included several changes to the permitted
<br />area boundary and affected area boundary, and the boundary was not yet fully marked. This was not a problem at the time
<br />of the inspection, but the operator must ensure that the affected area boundary is adequately marked by next field season.
<br />Markers should be durable and visible, and should at least be placed at the corners. Additional markers between corners
<br />are recommended if sighting from corner to corner is not possible. The access road from the county road to the portal area
<br />is also included in the permitted area acreage, though the road itself does not need boundary markers.
<br />There are also several remote areas (for vent holes, compressor buildings, electric substations, etc.) and their short access
<br />road spurs included in the affected area acreage. These remote sites and their roads have irregular boundaries, which do
<br />not have to be fully delineated by markers. The remote features, however, should be somehow marked or identified. This
<br />could consist of posting a small sign on a t-post, chain link fence, power pole or vent housing, identifying the site by permit
<br />number and feature (for example: MLRB permit M-1981-021, Vent WS-31• It is understood that a sign at a remote location
<br />often invites vandalism, but the Division feels that marking these sites is important, so the method and placement is left to
<br />the operator's discretion.
<br />There were two areas where patches of knapweed were noted: on the access road at the gate location, and behind (to the
<br />south) of the smaller shop building. The weed was identified as Russian knapweed, one of the species listed on the State
<br />noxious weed law, which requires that they be controlled. The patches are still fairly small, but may spread quickly. Mr.
<br />Fisher observed the weeds, and stated that they will be treated this tall, and monitored during coming years, until they are
<br />controlled. He is a licensed applicator, and is trained to use the most effective chemical. The weeds are not a problem at
<br />this time, but the operator should report what treatment methods were used this year to control them. (This may be
<br />reported as part of the annual report, or in a separate correspondence.) The continued presence of the knapweed and size
<br />of patches will be monitored in future inspections.
<br />The waste dump still contains the portal, wooden portal shed, steel buildings, shack and steel posts for "listening
<br />equipment" for loads of ore, low grade ore stockpile, upland runoff diversions, and stormwater runoff control structures
<br />below the dump. The dump slope is steeper than 2:1 presently. The fuel tank near the building was empty. All
<br />contaminated soil and barrels formerly outside the shop have been removed and cleaned up. The margins of the dump pad
<br />were well bermed. Site clean-up has resulted in a neat site with little debris present. Anew drainage channel has been
<br />established below the east end of the dum. The east end of the dump must not move farther east, since this is the new
<br />east boundary.
<br />The adit is closed temporarily by earthen fill at the mouth of the portal shed. This is adequate to safeguard the opening, but
<br />should be monitored to ensure it remains closed. Final closure will consist of removal of the steel shed, backfilling the adit
<br />with rubble and debris, and earthen fill in the adit and against the vertical face up. If the face up is stable, the upper portion
<br />of it may remain; it may not have to be completely covered by backfill.
<br />Remote sites containing vent holes ISJ-1, WS-1, WS-2, WS-31, support structures and access roads were inspected also.
<br />Their observed details match those represented in TR-01, and will be used as a basis for the upcoming bond review. The
<br />bond amount is currently 533,399. This amount is due to be reviewed after the updated reclamation map is submitted in
<br />the near future. However, the present amount is estimated to be adequate at this time.
<br />No further items were observed or discussed during the inspection. No problems were observed onsite, and the operator
<br />has corrected all outstanding problems noted in the file. Responses to this inspection report should be directed to the
<br />Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: bob Oswald; phone no.
<br />970-247-5193.
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