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(Page 2) MINE ID # OR PROSPECTING ID # M-82-020 INSPECTION DATE 5-5-93 INSPECTOR'S INITIALS ACS OBSERVATIONS This site was inspected as part of the Division's on-going monitoring, inspection and enforcement program. These inspections focus on environmental compliance, permit compliance, operational statue, and bond amount adequacy. 1. The permit boundaries are adequately delineated in the field. The north boundary is marked by a property line fence, the east boundary by the access road, and the west boundary by the west edge of the topsoil stockpile. The operator has stored some equipment on land he owns to the east of the permit boundary, but this equipment storage and bone yard is related to the operator's earth-moving business, not to the mine. A11 mining related disturbances must remain within the permit boundaries. 2. Rule 6.7 of the Mineral Rules and Regulations of the Mined Land Reclamation Board requires that a sign be posted at the entrance to the mine Bite. No sign was posted at the time of this inspection. The operator stated that such a sign had been posted, but it had been vandalized or stolen. Rule 6.7 states: At the entrance of the mine site the operator shall post a sign, which shall be clearly visible from the access road, with the following: (a) The name of the operator, (b) A statement that a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Board, and (c) The permit number. 3. This operation consists of a single concrete lined shaft near the south end of the permitted area, a mill building (approximately 60'x60' in size) just north of the shaft, a 23,000 eq. ft. lined (hypalon) and fenced pond just north of the mill building, A small waste rock dump just west of the shaft, and a 105,000 aq. ft. tailing pond in the north-west portion of the site. 4. The operator pumps water from the underground workings into the lined pond and uses this water for ore processing. A well permit has been obtained, and the pumping is metered. 5. The mill building is of wooden construction on a re-enforced concrete foundation; there is a concrete water storage tank beneath the floor. The mill building houses the hoisting machinery, mill, gravity table, flotation circuit, cyanide circuit including leach vat and Merrill-Crowe apparatus, thickening tank, chemical and tool storage, and an assay lab including a small propane furnace. A diesel generator mounted on a semi-trailer is stored in a lean-to on the west aide of the building, the crusher is at the south-west corner of the building. There are two skid mounted fuel tanks on the west side of the building, these need to be inspected frequently for leaks. The mill building is well constructed and maintained, all milling and assay chemicals are properly stored. The mill is on patented claims owned by the operator; when the mill is de-commissioned, the building will remain and be used for another purpose. Ae a result, no coat for structural demolition is included in the reclamation cost estimate. 6. The lined pond was originally built to impound tailing from the cyanide circuit. The operator has not run the cyanide circuit since 1985. The pond has been cleaned out, and is now used to store clear water pumped from the underground workings for use in the mill. At the time of this inspection, the lined pond was full (less than 1 foot of free-board). Any over-flow from the pond escapee at the north-west corner and flows in a large ditch to the lower tailing pond. The lined pond ie fenced, the fenced area measures approximately 200'x125' as paced in the field. The west facing out-elope of the pond embankment has been successfully re-vegetated with perennial grace species. In order to reclaim the pond from its current configuration, the liner would be ripped and folded in, the embankment on the west aide would be graded into the pond, and the graded area