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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1978-091 <br />INSPECTION DATE 9/10/02 <br />INSPECTOR'S INITIALS RCO <br />This inspection was performed by the Division as part of its monitoring of Hard Rock and Metals 110 DMO permits. The <br />operator's representative was contacted about the inspection. The operator's representative named on page one was <br />present during the inspection. This was a partial inspection since the 3 level pad and portal were not inspected. The site <br />was active during the inspection. <br />The 6 level pad and portal area were found to be more organized than at any other inspection in recent years. The entrance <br />(NW) end of the pad now contains a small parking area for the new compressor and generator trailers which support the <br />ongoing underground activities and the ore processing equipment which is now utilized onsite. The processing includes <br />a small crusher and screen and several conveyors/stackers. The raw ore is handled in this circuit in order that it be in a <br />condition that the out-of-state processing plant will accept. There was a stockpile of muck, containing about 20 cubic <br />yards. The sacked ore was not at the Vickers Ranch parking area, but was at the other end of the pad: 42 closed sacks <br />in orderly rows. The sacks were on a pad surface, created out of mine muck (ore). <br />There was a small ramp created out of mine muck on the gulch end (SE end) of the pad. The outer fill slope, consisting <br />of ore, extends down to the base of the fill, which is in the drainageway of the gulch. This is contrary to a detail of the <br />Environmental Protection Plan (EPPI which is intended to isolate the acid producing ore materials from the benign material <br />native to the gulch surface. The operator was instructed to pull back this material away from the gulch and, as long as <br />the ramp/fill are desired to be there, replace material on that surface with clean borrow from onsite. <br />The crest at the outer edge of the pad is bermed. Most of the pad surface is graded to drain away from the crest and the <br />berm, and toward the sump at the portal. However, between the trailer/office and the wooden shack is an unbermed <br />section which receives runoff from a small area of the pad. (A rain event began during the inspection, which allowed this <br />inspector and the operator to observe the runoff patterns.) The mnoff reporting to this location on the pad leaves the pad <br />through the breached berm and travels down the face of the dump. This is obviously contrary to the approved EPP for this <br />site, and is not consistent with a stormwater management plan. The operator was instructed to perform grading to direct <br />runoff toward the sump at the portal, and to repair the berm. <br />The~recedinp two parapraohs describe two observations which are noted as one problem in this resort, under the tonic <br />of "hvdrolooic balance." The corrective action will be to perform the work described in this report and to report the timely <br />completion of said work to this office by a specific date. See the last pane for the corrective action and date. <br />There is a trace of vegetation growing on the upper portion of the dump face which, though not identified by this inspector <br />as a desirable species, was not identified as a noxious weed either. If it was seeded by the operator as part of the final <br />reclamation, more of it should be broadcast. (The operator should note that there is a small patch of thistle along the <br />cutwall, between the borrow area and the portal. It is a noxious weed and should be treated timely and regularly. If it <br />spreads it will be noted as problem in future reports.) <br />The borrow area at the entrance of the pad has not been heavily excavated but is not stable. Its steep cutslope will <br />continue to slough, and advance the headcut up the slope. The operator should be fully aware of exactly where the permit <br />boundary is in this location, mark it, and work to prevent offsite damage, whether it is active, passive, or accidental. <br />There were no additional items observed or discussed. All responses or questions about this inspection report should be <br />directed to this inspector at the Division's Durango Field Office. The address is: Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301; telephone 970/247-5193, or fax 970/247-5104. <br />I & E Contact Address <br />NAME Kve Abraham <br />OPERATOR LKA International. Inc. <br />STREET 3724 47'" St. Ct. NW <br />CITY/STATE/ZIP Gip Harbor. WA 98335 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />