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~l~ • • (Page 21 MINE ID # OR PROSPECTING ID # M-82-020 INSPECTION DATE 10/10/96 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as aprt of its monitoring of high priority metal/110 permits, and to assess the level of disturbance related to the existing bond. The operator was contacted about the inspection but was not present for it. This is an underground operation, with related surface activities for the processing of the ore. The site contains a head frame and shed enclosure, onsite power generation, metal building housing the mill and vat leach facility, ore conveyors and chutes, tailings pond, cyanide pond, and secondary mine entrance. Unrelated equipment is parked nearby, which is used for the operator's other business ventures. The mill and leach circuits are inactive, and will remain so until the operator notifies the Division of their reactiviation, at which time the bond will be recalculated to include those facilities and activities. Occasionally the water in the underground workings is pumped out, and impounded in the cyanide pond. Prior water samples taken from this pond (after the leach circuit was inactivated) show the water to meet the applicable standards, though it is merely evaporated. At present however, no recent pumping has occurred, and there is approx. 6 feet of freeboard in the pond. The stormwater structures along the north side of the permit are intact and appear functional. The tailings pond has an earthen dam, which appears competent. The dam and pond banks are well vegetated and show insignificant erasion. The pond floor shows evidence of past impoundment of, presumably, precipitation, but is dry now. There is approx. 15 feet of available freeboard. There is one problem which was noted during the inspection. The fuel supply lone of the green tankers) on the west side of the mill building is the site of some past spillage of diesel fuel. The soil is stained and is visibly contaminated at least several inches down. If the tank or valves were to fail, the downslope tailings pond would catch the resultant spill, but groundwater quality could potentially suffer. The contaminated soil at the valve indicates a fuel handling problem. The operator must repair the valve adequately to prevent future spills or install an impervious catchment structure below the valve, and completely remove all contaminated soil. Evidence of the adequate and complete removal, plus a description of its disposal is required to be submitted, as shown on the last page of this report. A similar but smaller spill area was noted as coming from the smaller fuel tank, near the old sheepsfoot in the scattered equipment on the hill east of the mill building. It has also stained the soil, but appears to done so only once. Again, the cause of the spill needs to be determined and prevented from recurrence, plus appropriate cleanup and reporting must be performed. There were no other items noted or problems observed during the inspection. If the operator wishes to discuss this report with the inspector, please contact the office shown below: Division of Minerals and Geology 484 Turner Dr. Bldg. F -Ste. 101 Durango CO 81301 970/247-5062 or 247-5193 I & E Contact Address NAME OPERATOR STREET CITY/STATE/ZIP Melvin R Gydesen 229 CR 11 Gunnison CO 81230 cc: Tom Gillis/DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD ICHI ^ SE ^ WOCD ICHI ^ OTHER