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. (Page 21 . <br />MINE ID # OR PROSPECTING ID # M-81-185 <br />INSPECTION DATE 8/20/98 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's routine monitoring program for permitted operations. Trina Morgan <br />and Johanna Cramer, from the DMG Denver Office, participated in the inspection. DMG attempted to contact <br />Mr. Ferguson by phone prior to the inspection but could not reach the operator. No activities were observed, <br />no individuals contacted during the inspection. Operations appeared to be dormant. DMG holds 55,000 <br />financial warranty. <br />Mine identification sign was posted at the mine entrance. Public access is controlled by locked gate across <br />the access road. <br />Weeds - Canada thistle were present on the pre-permit access road. DMG has identified Canada thistle as <br />a regulated noxious weed, in DMG's 7/17/98 Weed Control Policy. Rule 3.1.10(6) states, Methods of weed <br />control shall be employed for all prohibited noxious weed species, and whenever invasion of a reclaimed area <br />by ocher weed species seriously threatens the continued development of the desired vegetation. Weed control <br />methods shall also be used whenever the inhabitation of the reclaimed area by weeds threaten further spread <br />of serious weed pests to nearby areas. The Canada thistle, observed on the access road during the inspection, <br />did not appear sufficiently established to be a threat to reclaimed or surrounding areas. However, if the <br />operator allows the weeds to become an established infestation, DMG may identify weeds as a problem in <br />future inspections and require that the operator submit a weed control plan to address the problem. <br />Lower Portal -steel gate closure was locked and appeared intact. Debris from the portal cut slope had <br />migrated downslope and blocked approximately 75% of the portal entrance. Several timbers from the portal <br />shed had failed, resulting in additional debris falling within the mine entrance, behind the gated closure. Water <br />was impounded within the portal, depth and extent not determined. Additionally, DMG inspector could not <br />determine whether the water was impounded surface drainage or groundwater intercepted by underground <br />workings. A small seep was observed at the toe of the debris blockage. Mine drainage was apparently <br />seeping through the debris blockage and was absorbed into the portal bench within 15' of the portal, no off- <br />site discharge observed. Mine drainage appeared clear in coloration, no evidence of metals staining was <br />observed. Aquatic vegetation, insects and algae appeared to be thriving in the area wetted by the seep. <br />Cottonwood trees were established on the portal bench and waste rock stockpile. Outslope of waste rock <br />stockpile appeared stable. <br />Upper Portal - Not inspected. <br />Financial Warranty -DMG has reviewed the cost of reclamation for the Mayday Mine and has determined that <br />the present amount of financial warranty, 55,000, is sufficient to ensure reclamation. <br />I&E n A r <br />NAME John Ferguson <br />OPERATOR Shalako International. Inc. <br />STREET P.O.Box 2030 <br />CITY/STATE/ZIP Durango. CO 81302 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BLM <br />^ FS <br />^ HW <br />^ HMWMD (CHI <br />^ SE <br />^ WOCD (CHI <br />^ Other <br />