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<br /> <br />MINE ID # OR PROSPECTING ID # M-1983-030 <br />INSPECTION DATE 6/28/00 <br />(Page 21 <br />OBSERVATIONS <br /> <br />INSPECTOR'S INITIALS WHE <br />This inspection of the Twin Canyon Mine occurred in accordance with DMG's routine monitoring <br />policy for permitted operations. Mr. Westley Potts and Mr. Jim Potts accompanied the DMG <br />inspector throughout the inspection. The Twin Canyon Mine is approved for 0.75 acres affected <br />area, for the extraction of precious metal ore from the historic Charlene Tunnel, and processing <br />of the ore at a mill site located behind the residence of Mr. Potts. Permit status is active. DMG <br />holds 51,500 financial warranty. <br />The operator indicated that recent mining activities at the Charlene Tunnel were limited to site <br />maintenance but that the operator desired to reconstruct the portal entrance in the near future. <br />This inspection was limited to activities conducted at the mill site and did not include activities <br />conducted at the Charlene Tunnel. <br />Records DMG records indicate that the original permit was issued on 6!30/83, to Potco Mining <br />& Milling, as a 11012) type permit, 0.75 acres affected area, financial warranty set at $1,000. On <br />5/12/92, DMG approved conversion of the permit from the original 11012) to a 11011) permit. On <br />2/15/96, DMG received an additional 5500 financial warranty, for a total financial warranty of <br />51,500, the maxium amount of financial warranty allowed by statute for 110(1) permits. On <br />6/17/96, DMG approved technical revision #1 (TR-01), addressing drainage control and a <br />permanent sediment pond at the mill site. DMG records do not indicate additional modifications <br />to the permit. <br />Mill Site Affected area perimeter markers were posted. Milling equipment, small stockpile of <br />tailings, and one small sediment pond were located within approved areas. Evidence of recent <br />milling activity was not observed. However, material stockpiled at the mill site appeared to have <br />been recently disturbed and/or relocated. The operator indicated that the milling equipment had <br />not activitated for several years. Designated chemicals or other toxic or potentially hazardous <br />materials were not observed, Evidence of excessive erosion or sediment transport beyond the <br />sediment containment structures were not observed. Affected area drainage appeared to be <br />appropriately controlled in accordance with permit conditions, the Act and Rules. Site appeared <br />stable. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247- <br />5469. <br />1 & E Contact Address <br />NAME Westlev Potts <br />OPERATOR Potco Milling & Mining <br />STREET 8115 Countv Road 41 <br />CITY/STATE/ZIP Mancos. CO 81328 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />