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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-311 INSPECTION DATE 4/15/02 INSPECTOR'S INITIALS RCO This inspection was performed by the Division as part of its monitoring of Hard Rock and Metals 110 non-DMO permits. The operator was contacted about the inspection, but was not present during the inspection. The site was not active during the inspection, and the site appears to have been inactive for several years. The recent annual reports also state the site has not been active. Though the site is secured against unauthorized vehicle access with its locked gate on the entrance road, it is accessible to foot traffic. It appears that some vandalism has occurred to the buildings onsite, since all doors and windows have been broken or damaged. Entry to the buildings was not possible, due to the doors bring locked. The portal is secured by a locked steel grate, which was intact on the date of the inspection. No equipment, parts, debris, ore or other contaminants were present at the site. Other than halogeton, the vegetation onsite consisted of a few thinly scattered native species, but no reclamation seeding has apparently been carried out. The site consists of two narrow benches, one above the other. Much of the slope between them is steep, but fairly stable due to the angular nature of the waste rock comprising it. One part of this slope is occupied by a steel and wood crib, which is still stable. The portal is driven into asouth-facing cliff wall of massive sandstone. However, some of the sandstone is becoming unstable above the portal, requiring extensive cabling to keep it in place for the short-term. Power is supplied by overhead electric. The pole nearest the shop contains 3 PCB-free transformers. The pole, lines and transformers are represented by the operator to be the property of San Miguel Power. There is a berm along much of the shoulder of the bench slope, which acts to contain stormwater runoff. There is one point along that berm however which is breached, and uncontrolled erosion has occurred to the slope below the road. Sediment has been transported to the desert floor area immediately below the benches. The operator's sediment control structures, a series of geotextile fences staked across the drainageways, have become filled, destabilized, or damaged. They are largely non-functional now, and must be replaced. It is not clear how much of this low area is within the permitted area, but if areas outside the permitted area boundary were affected it may be a possible violation. Besides reoairinp or reolacinp the sediment controls, the operator must repair the sediment berm on the bench, and more clearly mark the permit boundarv. There is a problem noted under the topic of "erosion/sedimentation" on paste one, and the corrective action is described on the last pace. The bond posted with the Division is S100. The operator has posted a reclamation bond with the U.S. DOE in the amount of 531,000, as approved by technical revision TR-02 in December 1999. The reclamation costs were recalculated in November 1998, and are due for another review. If there is any increase beyond what is held by DOE, the operator will be notified. 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 OPERATOR STREET CITY/STATE/ZIP Dave Diss Cotter Coro. P.O. Box 700 Nucla. CO 81424 cc: Tom Gillis, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER cont.