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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2007-044 <br />INSPECTION DATE: 7-23-08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The Whirlwind Mine is a 112d Designated Mining Operation <br />(DMO) underground mine located west of Gateway, Colorado. By policy all DMO mines are inspected on a <br />quarterly basis. This is the 2nd quarterly inspection since approval of the application in February of 2008. Dick <br />White accompanied the inspector on the site visit. Peter Hayes, Michael Cunningham and Jared Ebert of DRMS <br />also accompanied the inspector on site. <br />The Whirlwind Mine is currently working under an approved Notice of Intent, P-2005-008, while the final processes <br />are completed for full permitting by the Bureau of Land Management. As noted above, DRMS approved the <br />reclamation permit in February 2008. <br />Surface Inspection: <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />The sign is located at the main gate to the portal area. Permit boundaries are marked by fencing and t-posts that are <br />readily visible. <br />The Whirlwind portal staging area and waste dump area are well maintained. Vent tubing, steel sets, and timber are <br />all stacked neatly on the pad. Fuel tanks are set in secondary containment stock tanks. No evidence of spills such as <br />soil staining was observed. New vent tubing was being attached to electric fans for the mine. Portable generators <br />which power all electrical needs for the site are positioned on the equipment bench just west of the portal. The area <br />was noted as being well kept and orderly. <br />The waste dump area is being built up and remains within the original footprint of the pre-existing reclaimed waste <br />pile. Muck is still being deposited at this time from the rehab project and appears to be mud and inert rock. No <br />indications of ore cross contamination were observed. Pre-existing stormwater controls are well maintained and <br />functional. <br />The water treatment plant was observed. Approximately 1 to 2 gallons of raw mine water was noted as being <br />pumped from underground into the primary holding tank. The tank is in good order and no evidence of leaks or <br />overflows was observed. It was observed that a 55 gallon barrel of a corrosive was sitting next to the treatment <br />trailer on bare earth. No signs of spillage were noted and the barrel was not in a traffic area. This is the first time <br />such a condition was noted. All fuels and chemicals should be in some kind of secondary containment or stored <br />within a building structure. This is being listed as an issue of concern. No problem or violation is being issued but <br />the operator will need to correct the matter and ensure that proper storage is maintained at all times. Failure to do so <br />may result in the matter being turned into a problem with specific corrective actions and corrective dates if observed <br />during a later inspection. <br />The salvaged topsoil from the waste piles is stockpiled next to the water treatment plant. Straw has been placed on <br />the stockpile to help prevent erosion from wind and precipitation. No erosion or sedimentation was noted.