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(Page 2) MINE ID # OR PROSPECTING ID # M- 1-DOi - D `3 INSPECTION DATE J9~- 'fi~l~/0} INSPECTOR'S INITIALS RCO This inspection was performed by the Division as part of its monitoring of 110(2) metals permits and to verify that corrective actions were carried out (the placement of permit boundary markers). The operator named on page one was present during this scheduled inspection. This site is to be accessed during its active operation via an existing roadway from the east, though some road repair will be needed before it can be used. No mining activity has occurred to-date, and no road work has been carried out. The operator and this inspector accessed the site for this inspection by foot via a trail from the north. The operator should note that upon activation of this permitted operation a permit ID sign should be posted near the head of that road. (This office understands that such a sign may make this unsupervised site more visible and vulnerable, and the operator should discuss the sign and the entry with this office prior to installation.) The permit boundary is def ned mainly by the boundaries of the existing patented claims, and markers were observed placed at the corners and between corners. The problem noted in the 2006 inspection report is corrected. The underground workings have one portal, which is closed by timbers and boards. The permit ID sign is posted on the boarded portal, and is adequate to fulfill the requirements of Rule 3.1.12. The operator indicated the rocks that had fallen from the back approximately fve feet inby of the boarded door, preventing entry to the workings. The operatorwill leave those fallen rocks and the portal boarded to reduce unauthorized entry and possibly vandalism to the mine. The ground surface outside the portal is moist but there is no standing water or evidence of surface flow. The portal is located a short distance below the bend in Red Cloud Creek, and though the creek does not enter the mine workings orabove-ground area as surface flow, there is a small amount moisture which undoubtedly seeps into the workings through fractures. The operator states that the workings are fairly dry, with no ponding of water. No evidence of seeps appears elsewhere onsite. The portal area contains the same small amount of miscellaneous old mining debris (rail, tank, hose and pipe) and the dump is still present. Nothing appears to be disturbed or changed from the former inspections. The dump exhibits a bit of mineralization (weathering of small amounts of pyrite, black oxides of manganese, galena) butthere is no plume of stained soil or halo of dead vegetation around or below the dump. The interior area where ore will be stockpiled has not been cleared, and no ore was present. The stormwater and sediment ponds along the north are still present and appear to be intact, though they are thickly vegetated. The portion of the access road within the "claim" area crosses Red Cloud, but no culvert has been installed. A culvert or other approved structure must be placed prior to vehicular entry to the site, to avoid producing erosion and resulting in sedimentation. There was no contamination observed, and no noxious weeds. At this time, there being no disturbance, the present bond is adequate. When the operator foresees activation of the site, it is requested that this office be contacted. If the operator needs to operate under a different plan than the one presently approved, please contact this office to discuss a revision. No further items and no problems were observed during the inspection. Responses to this inspection report should be directed to the Division of Reclamation, Mining and Safety, 701 Camino del Rio, Room 325, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970-247-5193. (Please note the new room number and update your records.) I & E Contact Address NAME OPERATOR STREET CITY/STATE/ZI P Wavne Giesv Midas Minino Co.. Inc. PO Box 772 Philomath.OR 97370 cc: Tony Waldron, DRMS ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WQCD (CH) ^ OTHER Cc: Dave Lazorchak, BLM, 216 N. Colorado, Gunnison, CO 81230