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;Page 2) MINE ID R OR PROSPECTING ID N H-1992-045 INSPECTOR'S INITIALS_ESC INSPECTION DATE 09 27/04 OEBtRVATIONB Colorado Divisioncof Minerals enddGeollogyMin~ameedandeDeannarVan 611abweredpreaentoduring the inspection. The Gold Basin Mine is located 7 y] mile west of Granite at an elevation of 12,000 feet. 'rne permit was issued on July 21, 1992 for 3 acres of disturbance. The site ie located on private land. The operation is also used as a tourlat mine. Mining is limited to a few months of the year due to the extreme weather conditions. The operator excavates alluvium screened, lwaehedpandaaencathrough aorsluicee boxeayatem~ tThepDoivisiongcurrentlyrholdsie financial warranty in the amount of 53,600.00.00 The Division determined the permit boundary area to be 3.8 acres in size based on collecting data points in the Global Positioning System (GPfi). The Division calculated the area based on three operator placed markers posted on site and one approximate location of the fourth marker. The permitted area was approved for 3 acres in size. The upper portion of the site consists of historic dredge piles. Disturbance on the permitted site consists of excavation of a stream channel. The channel elopes are steep (O.Sh:1v) due to the excavation of the material. In some instances, the slope has been undercut by mining excavations or elope failure hat occurred. Material that is excavated and washed has been placed in a pile below the shop area. The creation of this waste pile was not a component of the mining and reclamation plan. In fact, the operator stated in the permit that material excavated would be used as backfill for the mining elopes in the original mined area to achieve 3h:ly. In particular, the mining plan states: •An open ended pie will be dug to extract placer deposits from the channel, when the pit is large enough to turn a one yard loader freely a one yard bucket of material will 9o to the wash plant and a yard of the was rock and tailing sands will come back to the pit. With this plan I believe I can keep my reclamation plan in check." In addition, the mining plan statea_ ^i can't see a reason in having waste rock dumps and tailing impounds if proper mining management is in practice. My project plan is to use the waste rock for back fill and keep grading to prevent erosion and to maintain hydrologic balance" During the inspection, the Van Bllas stated that they are creating a flat bench area for future development on the property. The material conaiate entirel}• of washed fines. The Van channels over a~per. hod ofv 14r s aeo is 00 Thisc yamaunu fto approximately Bn400 cy~o material located in the waste pile. Since the Division's last inspectioa, it appenre that a large shop has been constructed on site. The permit does state the[ a maintenance building is planned for tools end processing concentrates. However, the reclamation coat estimace does not address removal of Chia building once mining is complete. The approved poatmining land use for the Bite is residential. If the Van 811a's propose to keep the structure in place after m.inin9 land therefore, do not need to be bonded for removal), it mutt be so stated in the permit. In addition, the Van Ellae will need to demonstrate that retaining the structure meets all local zoning rules and regulations via a letter from the local zoning authority. Two settling ponds exist on site as well as one fresh water pond. The water source for the sites originates above the effected area in the form of a small creek. The application states that water rights are for placer mining purpose and are decreed Cor a capacity of 15 cubic feet per second. The operator stated in the permic that in order to avoid litigation, they will purchase Twin Ickes water Share or g share. The opeLOtriatelwater~ ight sforrthe that they arc in compliance with the permit and have the app p placer operation. -_ / ~~,.G-~d~ u~t.t ~yr.c_~-f~f.~c~~.o-~>,->G~~~i . Ltd .~c4c-w1~~G/~", ~. T~.r ~ i.i~ii