INSPEC35589

• Permit No: M1993035
• IBM Index Class Name: Inspection
• Doc Date: 8/21/2006
• Doc Name: Inspection report
• From: DRMS esc
• To: Alpine Rock Company
• Inspection Date: 8/2/2006
• Media Type: D
• Archive: No

(Page 2)
MINE ID # OR PROSPECTING ID # M-1993-035
INSPECTION DATE 6/02/06 INSPECTOR'S INITIALS ESC
OHSSRVATIONS
This was an inspection of the Swan River Resources Mine conducted by Erica Crosby of the
Division of Minerals and Geology. Joe Dudley of Alpine Rock Company was present during
the inspection.
A 112c Mining and Reclamation Permit was issued to Alpine Rock Company on October 4, 1993
for a total permit area of 352 acres. The Division holds a financial warranty in the
amount of $34,339.00.
The Swan River Resources Mine is located 5 miles northeast of Breckenridge in Summit
County, Colorado. The site lies within the drainage of Swan River. The material mined
consists of historic gold placer tailings piled along the river bank. The piles range in
height from 5 feet to 15 feet. Mining will remove the piles to a depth that ties in with
the surrounding grades. No excavation below the original ground level is expected. The
permit states that a portable gravel processing plant will be erected on site to crush and
screen the gravel.
The following issues were noted during the inspection that needs to be addressed by Alpine
Rock Company;
Legal Right of Entry
During the inspection, the Division obae rved Everist Materials, LLC ("Everist") mining
within the permit boundaries of the Swan River site. Upon further review of both permit
files, it appears that Everist holds a overlapping mining permit in Sections 24 and 25,
Township 6 South, Range 77W (known as the Mascot Placer, Permit No. M-1998-052). The
total acreage of the Everist Mascot Placer is 89 acres (within the 352 acres permitted by
Alpine Rock). With two overlapping permits the question becomes which entity has the legal
right to enter to mine and reclaim the site. The Division obtained the following
documents from both permit files, and are attached as reference.
o June 8, 1993 Alpine Rock 112 pe
French Gulch Mines Inc. & B&B Mi
enter and mine on site. The leas
enter into negotiations for a ne
o August 4, 2003 the Everist Mascot
total of 9.94 acres. The deed in
that that the site was sold from
Company, LLC.
o June 23, 2004 the Everist Mascot
permit to mine 89 acres. Everist
Company, LLC. and the termination
rmit application contains a lease agreement between
nes, Inc. and Alpine Rock dated October 16, 1992 to
e is for a period of 5 years, and has the right to
w Lease Agreement.
Placer permit (M-1998-052) was amended for a
the permit amendment dated July 13, 1998 states
French Gulch Mine, Inc. to Rock Island Land
Placer permit (M-1998-052) was converted to a 112c
states that the owner is Rock Island Land
date of the lease is December 31, 2012.
From the correspondence in the files, it appears that the current property owner for a
portion of the site is Rock Island Land Co. and Everist has the right to mine and reclaim
on the 89 acres noted in the permit. it also appears that French Gulch Mines, Inc. & B&B
Mines, Inc. are no longer the property owner of the Bite (as noted in the original lease
agreement with Alpine Rock), and thus the lease noted in the Alpine Rock file may no
longer be valid. The operator will need to provide documentation of Alpine Rock's legal
right to enter the site to conduct mining and reclamation operations by October 31, 2006.
Failure to do so will result in a notice of possible violation of 34-32.5-112 (1)(c)(IV) of
the Colorado Land Reclamation Act for the Extraction of Construction Materials, Rule
6.4.14 and the Performance Warranty for failure to provide a description of the basis for
legal right of entry to the site to conduct mining and reclamation. For areas that are not
covered under the lease (or overlap with the Everist Mascot Placer site), the operator may
need to file a partial bond release request to remove those areas from the permit area.
See page 4 for further detail.
water Quality Monitoring
In the permit the operator committed to performing water quality monitoring on a three
time per year basis (spring, summer and fall) at locations upstream and downstream of the
mining operation. The parameters to be monitored include; Total Phosphorus (mg/1), Ortho
Phosphorous (mg/1), Total Suspended Solids (mg/1), pH and Chlorides (mg/1). All