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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1990-070 <br />INSPECTION DATE 4/26/04 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred asfollow-up to DMG's April 8, 2004 inspection. Prior to the inspection a phone message <br />was left on an answering machine at (970) 387-5772, informing Mr. Louis Girodo, San Juan County Road <br />Department, of the inspection. Five photographs, taken during the inspection, are attached to this report. <br />In the report generated from the April 8, 2004 inspection, signature date April 22, 2004, DMG recorded several <br />problems with the mining activities occurring at the site. The possible non-compliance issues specifically dealtwith <br />Records, General Mine Plan, Backfill & Grading, Off-site Damage, and the Reclamation Plan. The previously <br />recorded problems and their associated corrective actions and deadlines remain in effectand are repeated on page <br />three of this report. <br />Evidence of mining and/or reclamation activity at the site since the April 8, 2004 inspection was not observed. <br />Mining activities were approved to remove limited material from the base of an alluvial fan deposit. Mining activities <br />were to maintain 3H:1 V and/or 4H:1 V slopes. However, mining activities appear to have removed excessive <br />quantities of material from the tde of the slope, resulting in 1 H:1 V or steeper slopes. Evidence of instability and <br />active slumping above the excavation area abounds. The slump scarp appears to have advanced approximately <br />200 feet above the pit floor and within approximately 100 feet of County Road 25. The excessive mining activities <br />appear to have undermined County Road 25. Evidence of bedrock outcrop, or other stabilizing structure within the <br />alluvial deposit and sufficient to protect County Road 25, was not observed. DMG recorded such problem in its <br />April 8, 2004 inspection report. DMG has imposed a June 2i , 2004 deadline for San Juan County to submit a <br />geotechnical stability report, which specifically addresses potential for damage to County Road 25, resulting from <br />mining activities. The geotechnical stability report must satisfythe applicable requirements of Construction Materials <br />Rule 6.5. <br />i ne potential for damage to County Road 25 will be defined by an appropriately conducted and reported <br />geotechnical stability study. However, given the potential threat to public safety, DMG recommends that San Juan <br />County either close County Road 25 or post danger signs to alert the public of the potential danger in utilizing the <br />undermined road. DMG recommends that San Juan Couniy maintain the closure of County Road 25 and/or <br />maintain the danger signs until San Juan County can verify the stability of County Road 25 through the required <br />geotechnical stability report. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del <br />Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I& E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITYJSTATE2IP <br />Louis K. Girodo <br />San Juan County <br />1512 Greene Street. Box 466 <br />Silverton. CO 81433 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />)( County Commissioners, Willy Tookey <br />