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III. COMMENTS -COMPLIANCE ,1~ ~~D _~~~ ~sY a7~. 03 ~~ Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a complete inspection of the Hayden Gulch Mine conducted by Jim Stark of CDMG. The mine has gone through a Phase I and Phase II Bond Release on all but approximately nine acres. The weather was warm and sunny and the ground was mostly dry (although parts of the access road were muddy and wet). All of the necessary records were available at the Montgomery Watson Harza office in Steamboat Springs. See the records checklist at the end of the inspection for more details. Shrub parcel HG-08 was well vegetated and the grasses and shrubs were turning green. The spring on the south slope of parcel HG-08 was flowing into the pond. The area appeared to be stable and no rills/gullies were seen at the time of the inspection. The pond was discharging at the time of the inspection (although the pond is no longer a part of the HG Mine permit). Shrub Parcel E was also well vegetated and the grasses and shrubs were turning green. The area appeared to be stable and no erosional problems were noted. Shrub parcel 003 was well vegetated and the grasses and shrubs were turning green. The area was stable and there were no erosional problems noted at the time of the inspection. The road to the two exploration holes was still too muddy to pass. The 1997 slump area was well vegetated and the grasses were turning green. The slump area appeared to remain stable and there did not appear to be any erosional problems on the slope. The alignments stakes area still lined up, indicating that the area remains stable. There was no water coming out of any of the French drain pipes below the slump area. The two remaining ponds (HG-08 and 003) are no longer a part of the HG permit. They are, however, well vegetated and stable and catch all of the runoff from shrub parcels HG-08, 003 and E and the 1997 slump area. No wildlife was seen on the site at the time of the inspection. There were numerous tracks, however, that indicate that antelope, deer and elk have been on the site recently.