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(Page 2) MINE ID # OR PROSPECTING ID # M-1995-097 INSPECTOR'S INITIALS SSS INSPECTION DATE 10-29-2002 OBSERVATIONS This was a routine inspection conducted as part of DMG s ongoing monitoring program for permitted mines. The inspection was also conducted to evaluate the current reclamation responsibility to ensure the financial warranty currently held by DMG is adequate to reclaim the site per the approved reclamation plan. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. No significant erosional features were noted on the affected areas of the site. Noxious and/or problematic weed infestation was observed within the affected area. The infestation, if not controlled, will most likely hinder and/or delay successful reclamation of this site and contribute to off-site spreading and establishment of these weeds. A weed control plan developed in consultation with, and approved by, the appropriate local weed control authority must be submitted as a technical revision to this permit. Weed infestation is noted as a problem, with the corrective action(s) and correction date specified on the last page of this report. Significant progress toward control of on-site weeds must be demonstrated within three years to avoid potential Board action. The approved mine plan contains commitments to regrade the main bench so that it drains toward the large depression near the entrance; regrade the top of the No. 2 portal dump to drain into the mountain; fence the site and perform some reseeding within 3 years of permit issuance in January 1997. DMG records have no documentation that these commitments have been accomplished. The lack of documentation of compliance is noted as a problem, with the corrective action and correction date specified on the last page of this report. There were a few barrels and fuel tanks on the main bench area, presumably containing hazardous materials, that were not stored properly within approved spill containment structures. Any containers of hazardous materials, must either be stored within approved spill containment structures or be removed from site and properly disposed of. Details and specifications for spill containment facilities and a statement of what materials, in what quantities, will be stored within the spill containment, must be incorporated into the permit through the technical revision process. The technical revision will need to include wording that is specified in the enclosed memo regarding DMG notification requirements for spills of toxic or hazardous materials at mine sites. These improperly stored containers are noted as a problem, with corrective action and a corrective action due date specified on the last page of this report. There is an abundance of junk and salvage equipment and materials that have been imported and stored within the permit boundary. Much of thisjunk and material is not mining related and will need to be removed from the site. Until these materials are removed from the site, the reclamation cost estimate will reflect costs for their disposal. In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG has updated the reclamation cost estimate (copy enclosed). Clearly, the site is currently under-banded. Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3r° Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address NAME Garv Wright OPERATOR Wright and Preusch Mining Ltd. STREET 201 North Mill Street CITY/STATE/ZIP Aspen Colorado 81611 cc: ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER