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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-004 INSPECTION DATE 9/12/07 INSPECTOR'S INITIALS RCO,KAP This inspection was performed by the Division as part of its monitoring of Hard Rock/Metals 112 permits. The operator was contacted about the scheduled inspection, and the operator's representative named on page one was present during the inspection. The site has been in phased final reclamation for numerous years. The required permit ID sign was observed at the entrance gate. The shop/office facility is still being maintained at the site, along with a lined above-ground diesel storage tank, heavy equipment parking area, and materials storage area. Equipment observed onsite included semi with flatbed trailer, grader, dozer, loader, excavator, and backhoe. Power to facilities onsite is supplied by diesel generator. The slopes above the north pit walls and north pit walls were inspected for stability. Tension cracks above the east wall of the north pit were still present, with no earthwork having been done to close them. The surface did not appear to be worsening, and the area is not a problem. Movement of the north pit wall has been monitored for over 20 years, and reported in detail to this office every year, The data from the last several reports suggest that the walls are eitherstabilizing orthatthe relatively low precipitation in recent years is responsible for less slope movement. There has been a bit of erosion at specific locations on the south wall of the north pit, resulting in somewhat deep (but small) gullies. The drainage patterns and control options should be examined, to attempt to remedy this. Ideas might include corrugated flexible poly pipe, rock-lined ditch, or weep lines (perforated pipe) along bench. The outslope of the different levels of the Indian Creek dump does not exhibit any sloughing, and the revegetation is becoming well established. The vegetation consists of grasses and legumes in seeded areas, and lodgepole pine and a few blue spruce transplanted as seedlings. The grazing pressure from deer and elk is apparent throughout much of the site, but the plants are surviving well. There were cattle onsite at the time of this inspection. The operator has rerouted a short road segment to improve stability and drainage control. The rock-lined drain channels appeared functional. The wetland cells being developed at the site of the former radium treatment plant (RTP) appeared to be functional: the vegetation was thriving. The seep at the Pinnacle Adit location was flowing at a low rate (no measurement was performed during the inspection). There were a few small patches of Canada thistle noted, in new locations. Former patches were not noted this time, indicating success of past controls, but the newer ones must be similarly treated and controlled. Stepping up treatments to twice annually may be more effective. (A new herbicide, "Milestone' by Dow, was discussed.) Since there is an active weed control plan for the site, this was not noted as a problem. The operator is reminded that weed control activities, as well as other reclamation activities, should be reported annually. The sand plant is still present, though there had been plans to remove it. The dam appeared stable, with no seepage on the face. The Tie Camp Creek dump was also stable. The earth cap above where the RTP was buried is still rough, and will be graded when the surtace is not too wet. That footprintwill be graded and seeded, similar to the reclamation on the surrounding dump. There is sufficient sericite to cap further items, and sufficient topsoil to pertorm the required reclamation. The South Pit was observed last: rock-lined channels are functional, slopes are stable with well established revegetation and minimal erosion. No further items 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 revise your records as necessary.) Cont.