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<br />MINE ID 0 OR PROSPECTING ID aY M$3-030
<br />INSPECTION DATE 12/13/95 INSPECTOR'S INITIALS WHE
<br />OBSERVATIONS
<br />This mill site inspection was conducted by Wally Erickson from the DMG field office in Durango. Mr. Westley Potts and Mr. Jim
<br />Potts accompanied the DMG inspector through out this inspection. The mill site is located behind the residence of Mr. Westley
<br />Potts, approximately 1.5 miles south of Mancos, 8115 County Road 41, in the S 112 of the S 112 of the SW 1 /4, Section 33, T36N,
<br />R13W, NMPM. On 1012/95, DMG inspected the mine site, located approximately 16 miles east of Mancos, this follow-up inspection
<br />was limited to the mill site.
<br />Approximate acreage of affected areas approved under this permit are as follows:
<br />Mine site - 0.21 acres, consisting of portal and portal bench area;
<br />USFS road - 0.27 acres, 1000' of road was constructed with USFS approval; and
<br />Mill site - 0.27 acres, consisting of ore stockpile, ball mill, Wilfey table, sediment pond, and sand tailings stockpile.
<br />Total area - 0.75 acres.
<br />DMG currently holds financial warranty in the form of a certificate of deposit with the Mancos Valley Bank, in the amount of
<br />51000.00. Rule 4.2.1 of the Hard RocklMetal Mining Rules and Regulations of the Colorado Mined Land Reclamation Board,
<br />Effective 5/77, Amended 10!95, requires DMG to set and maintain all financial warranties at a level which reflects the actual current
<br />cost of fulfilling the requirements of the Reclamation Plan, All mine sites in Colorado are required to be bonded for the actual cost
<br />of reclamation if, in the case of permit revocation and bond forfeiture, the State were to put the reclamation work out for competitive
<br />bid. Attached to this report is a detailed estimate of the cost to reclaim this site based on the approved mining and reclamation
<br />plans, and conditions observed during the inspection, DMG preliminary recalculation of the reclamation costs for the Twin Canyon
<br />Mine, 1000' of USFS road, and the mill site total 53,071.00. Attached to this inspection report is a Notice to Increase fire Financial
<br />Warranty to $3,071.00. Pursuant to Rule 4.2,1f21, the operator has sixty f601 days to post the additional amount of financial
<br />warranty.
<br />Mine identification sign and permit perimeter markers were not observed at the mill site.
<br />Mill operations included a small ore stockpile, ore hopper with conveyor belt, jaw crusher with conveyor belt, ball mill with conveyor
<br />belt, vibrating table, sediment pond, and sand tailings stockpile area. One 55-gallon drum was setting on the ground beside [he ball
<br />mill. No evidence of leaking or spills were observed, drum appeared intact. The operator stated that the drum contained a
<br />surfactant, utilized in processing the ore. No other chemicals, fuels or petroleum products were observed within the permit area.
<br />The permit states that no chemicals will be stored or utilized with this operation. DMG requires that all chemicals stored or utilized
<br />within the permit area be declared within the permit application and that such chemicals be stored and utilized in a manner consistent
<br />with Rules 3.1.5, 3.1.8, and 3.1.7.
<br />Processing water and surface drainage from the ore stockpile, jaw crusher, ball mill, and vibrating table report to a sediment pond.
<br />DMG records do not contain plans or designs for the pond. Sand tailings are periodically excavated from the sediment pond and
<br />stockpiled adjacent to the sediment pond. Drainage containment structures for the sand tailings stockpile area was not observed.
<br />Rule 3.1.51101 states that all mined material to be disposed of within the affected area must be handled in such a manner so as to
<br />prevent any unauthorized release of pollutants to the surface drainage system. Impervious liner underlying the mill, pond, and tailings
<br />stockpile area was not observed. Rule 3.1.51111 states that no unauthorized release of pollutants to groundwater shall occur from
<br />any materials mined, handled or disposed of within the permit area. The permit application does not contain a lab analysis of the
<br />ore or tailings, verifying that the ore or tailings do not contain toxic or acid forming materials. DMG requires that the operator
<br />provide lab analysis sufficient to characterize the tailings as to their potential to generate "acid mine drainage", as defined by Rule
<br />1.1121.
<br />The mill operation is not described within the permit application. Please submit a Technical Revision (TR) to the existing permit
<br />application, describing the mill operation. The TR should contain a schematic diagram showing the mill operation, all features of
<br />the operation should be depicted on the diagram.
<br />Acreage of the affected area for the mill site was measured with a distance wheel. A sketch of the approximate mill site acreage
<br />is included on the following page.
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