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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1981-021 <br />INSPECTION DATE 12/5/07 INSPECTOR'S INITIALS RCO,DAB,AJW,GRM <br />OBSERVATIONS <br />This partial inspection was performed by the Division as part of its monitoring of Hard Rock/Metals 112 permits. The operator <br />was contacted about the scheduled inspection. The operator's representative named on page one was present during the <br />inspection. <br />The site was active on the day of the inspection, with mining and stockpiling occurring. There were several small ore piles on <br />the pad, segregated by their quality. Ore is regularly brought out of the mine and stockpiled, and the ore is promptly hauled <br />away to be milled. There is also a previously existing low grade ore pile, that is now being drawn down and sent to be milled. <br />The site's diesel and other fluid containment was secure, and the site was orderly. Recently-the operator was made aware of <br />several areas of knapweed occurrence on the site and the road shoulders. The operator performed a detailed a weed survey <br />and has implemented a good program of monitoring and treatment (see map in file). Results of this program, which must be <br />continued as long as the permit is active, may be reported in the annual report. <br />The operator continues to place waste rock on the outslope of the dump. As the dump grows outward to the north the operator <br />must ensure that it does not exceed the permit boundary, nor occupy the area that is designated for the downslope stormwater <br />containment structure. <br />The operator has been moving the stockpiled topsoil that was near the western foot of the dump, in order to allow the dump to <br />expand and not damage the soil. The operator has also been stripping topsoil from the footprint of the expanded dump area, <br />and stockpiling that soil too. The relocated and "new" soil are being hauled to a level bench at the western bend in the access <br />road for temporary stockpiling. If this is to be a long term topsoil stockpile location, the operator must apply for a technical <br />revision (so that this office is aware of the volumes and distances for respreading during reclamation, and can adequately bond <br />for it), and the soil surfaces must be seeded for erosion protection. Please contact this office if there are questions. <br />The activities observed are consistent with the approved plan. No further items were observed during the inspection. <br />Responses to this inspection report should be directed to the Division of Reclamation, Mining and Safety, 701 Camino del Rio, <br />Room 315, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970-247-5193. (As of 10/22/07 we have a different <br />room number. Please revise your records as necessary.) <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />cc: Tony Waldron, DRMS <br />^ CE <br />Christy Woodward <br />Denison Mines (USA) Cor <br />1050 17"' St., Suite 950 <br />Denver. CO 80265 <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />Cc: Jim Fisher, Denison Mines (USA) Corp., PO Box 160, Egnar, CO 81325 <br />Helen Mary Johnson, BLM, 15 Burnett Ct., Durango, CO 81301 <br />