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(Page 21 MINE ID # OR PROSPECTING ID # M-1978-311 INSPECTION DATE 3 15/02 INSPECTOR'S INITIALS RCO This inspection was performed by the Division as part of its monitoring of Hard Rock 1 10 non-DMO permits. The operator was contacted about the scheduled inspection but was not present for it. The site is immediately adjacent to Highway 141, just east of the Slick Rock bridge. During the phone call to notify the operator of this inspection, the operator stated that there was no permit ID sign anymore. It seems that vandals continually remove it. Observations made during the inspection confirmed the fact that the ID sign was not present, nor were any permit boundary markers present either. Though there has been no recent mining activity, the site should be identified as a permitted site with its perimeter marked. There are several locations where a sign could be securely affixed, such as to a bin support beam, portal grate, or even posted inside the adit visible through the grate. The lack of a Sion and markers is noted as a problem in this report. The operator must post a Sion (containing all the required information) and place markers of some tvpe, and send evidence of completing this to the Division. by the date shown on the last page. The portal opening measures about 10 ft high and 12 ft wide. It is to be secured by an anchored steel grate. The grate was observed, but the locks were missing, and the grate doors were open, allowing unauthorized access to the underground workings. This open entry is not a problem in the context of this report, but the operator should remedy this potential risk as soon as possible. There were no buildings on the site, minimal debris, and no fuel storage or contamination. Existing structures consist of the pre-law structures which still remain onsite: bench roads, steel ore bin, wood cribbing. The long period of inactivity and neglect at this site is taking its toll on the integrity of the cribbing and rock fill, which is sloughing out. The ore bin is still intact and appears stable. The topsoil berm is present as shown on the map, and appears stable. Stormwater enters the portal bench area west of the portal and drains off at a point just west of the cribbing, which has created a deep erosional feature in the edge of the bench. All drainage and sediment from this appears to be directed to a Catchment on the flats below the bench, within the permit area. There is no problem noted for the Stormwater management, but the working surface of the mine, as noted above, is becoming degraded. This will be monitored for further degradation, and if appropriate, remedial work and/or additional bond will be required. The file notes that there will be no additional openings or drill holes associated with this operation. Inspection of the upper road (shown on the map as the proposed location for shop, compressor, Pule and water tanks) revealed none of these mine features but a series of drill holes. These holes were about 3 inches in diameter, "cased" with thin white PVC, and open. Cuttings were scattered on the surface. Their age was not apparent. The operator should confirm whether the holes were part of the exploration or operation of this mine. The bond amount has not been reviewed recently by the Division. In 1999 a technical revision was approved allowing a portion of the bond required for this mine to be posted to the federal government, and a portion to this Division. The combined total of the two bonds must be found to be the adequate amount in the upcoming review. There has been a long period of inactivity at this mine, which will be scrutinized under the restrictions set forth in Rule 1.13, Temporary Cessation. The operator is encouraged to review this rule. There were no additional items observed. 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 Don Coram OPERATOR Gold Eagle Mining. Inc. STREET P.O. Box 3007 CITY/STATE/ZIP Montrose, CO 81402 cc: Tom Gillis, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD ICHj ^ SE ^ WOCD (CHI ^ OTHER