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<br />MINE ID # OR PROSPECTING ID # M-1986-076
<br />INSPECTION DATE 7/19/02 INSPECTOR'S INITIALS RCO
<br />OBSERVATIONS
<br />This inspection was performed by the Division as part of its monitoring of Hard Rock and Metals i 10 DMO permits. The
<br />operator could not be contacted by phone, so he was mailed a letter about the upcoming scheduled inspection. Though
<br />there was obvious recent activity at the site, there was no activity and no mining personnel at the site during the
<br />inspection. While this inspector was driving back down the access road after concluding the inspection, he was met by
<br />2 men who stated that they were the new operators and lessees of the site las named below, and designated to receive
<br />copy of reportl.
<br />Until such time as the new lessees have the permit transferred over to them, or become the new designated contact
<br />persons under the same permit-holder (i.e., Deadwood Gulch Mining Co., or DGMCI, this office will continue to consider
<br />Mr. Bob Hill as the permit contact and DGMC as the entity responsible for maintaining the permit, submitting the required
<br />reports and annual fees, and posting the bond. If documents are needed to transfer the permit to this new party, please
<br />contact this office and request such. If the permit is to continue to be issued to DGMC but the contact persons are
<br />different, a written statement showing the new names, phones and addresses must be submitted.
<br />The site exhibited several permit ID and boundary signs, all of which were modified to show the new party's name and
<br />contact address. The boundary signs were not all posted exactly at permit boundary corners, but were often in locations
<br />where a vehicle road crossed a boundary. This is satisfactory, as long as the operator ensures that all site development
<br />on the ridge occurs within the permit boundaries, and the boundary locations are well known. Additional signs may have
<br />to be posted as development occurs.
<br />Rain had fallen the night before this inspection, which allowed this inspector to observe the effectiveness of grading onsite
<br />to control stormwater, It is absolutely essential that the designed structures and surface grading which were approved
<br />for the permit be maintained to function as designed with adequate capacity. The ramp roads onsite do not always exhibit
<br />adequate grading to control erosion, often lacking waterbars and diversions, or a surface graded to direct the water to the
<br />inside edge. Some of the operating pads are to include collection sumps or berms, though these were not always onserved.
<br />In places less stable runoff paths were observed, which can cause onsite (or offsitel deterioration from gully erosion or
<br />sedimentation. This is not a problem at this time, but attention should be given to installing and maintaining all required
<br />items.
<br />The mill building waS shut and locked, as was the cabin-shed on the mill pad. Much debris and parts formerly noted as
<br />stored outside the mill and shed have been removed or more neatly stored. The hopper and conveyor are still set up behind
<br />the mill, with ore in the hopper and tarp over the hopper. The approved designated chemicals have been placed securely
<br />inside the locked building. The mill building also houses the diesel generator. The diesel storage tank is still outside, out
<br />of the way of most mine traffic, but with no secondary containment. No spillage is noted, and this is not a problem at this
<br />time, but the operator should consider providing secondary containment. Water tanks for supplying the mill circuit are
<br />outside the back of the mill.
<br />The tails from the mill circuit ends in a sump outside the mill building, where it consists of solids and liquid, having been
<br />neutralized immediately prior to it placement in the sump. The sump was nearly full to capacity at the time of the
<br />inspection, with only about 6 inches of freeboard left. The sump was designed to allow percolation of the liquid into the
<br />permeable hillside colluvium, but only if the ground actually accepted percolation. Rains the preceding night may have
<br />begun to saturate the ground, which would slow the rate of percolation. However, the sump is placed such that it also
<br />receives stormwater from areas uphill which, given the recent rain, probably also contributed to filling the sump. The
<br />operator must not let the sump become too full; more regular emptying of tails is essential to ensuring adequate capacity
<br />and containment. (It should be noted that the tailings sands are physically transported downhill by loader for final disposal.
<br />Sands have been observed on the road downhill from the mill building, probably indicating less-than-perfect haulage, but
<br />possibly indicating inadequate containment in the sump. This must be maintained and monitored as long as it is part of
<br />the approved plan.)
<br />The former location of the tailings disposal is now the location of the ore crusher, which has been moved from its former
<br />location farther down the hill. There are other items on the same road and pad area, including conveyor parts, agitation
<br />tanks, mist steel stock, timbers and wood debris, and small power equipment. The fuel storage for this equipment amounts
<br />to less than 40 gallons. Storage is less than adequate, there being no secondary containment, but also exhibiting soil
<br />staining from spilled diesel. It appears to be a small amount, which will allow onsite "disposal" through dispersal and
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