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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1986-076 <br />INSPECTION DATE 8/24/04 <br />INSPECTOR'S INITIALS RCO <br />The lowest portal was closed against unauthorized entry. It was observed to have a small discharge (less than 1 gpm) leaving <br />the portal and crossing the pad outside. The discharge percolated into the ground on the pad, and did not leave the permitted <br />area as surface water. The water inside the portal is one of the two regular sampling points, with sampling required twice each <br />year. The operator is current with water sampling, though the surface and groundwater samples should betaken again soon, <br />and reported to this office. <br />The bond was recalculated in 2003, when amendment AM-03 was approved. The bond is sufficient. The operator should <br />report all disturbance, reclamation, weed control, and general clean-up at the site in the annual reports. <br />There are no problems noted at this time. No further items were observed during the inspection. Responses to this inspection <br />report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, <br />Attn: Bob Oswald; phone no. 970-247-5193. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE2IP <br />Jim Bender <br />DGMC <br />5529 US Hwv 64 <br />Farmington. NM 87401 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />