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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1991-054 <br />INSPECTION DATE 9/9/08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS RCO <br />This inspection was performed by the Division as part of its monitoring of Hard Rock/Metals 110(1) permits. This office was <br />unable to contact the operator prior to the inspection. The site was inactive, and no one was present representing the operator <br />during the inspection. (The operator's address is in Kodiak. AK and the operator's phone number is in Saguache CO possibly <br />indicating a local contact. The phone number, however, has been disconnected and a current phone number needs to be sent <br />to this agency.) <br />There were several new permit ID signs posted at the site: one at the upper gate 0.6 mile south of the mine, one about 0.1 mile <br />south of the mine, one painted on the cut wall in the upper part of the permit, and another on the north side of the upper portion <br />of the permit. It is acknowledged that signs are difficult to keep here, so it is hoped that the operator can maintain the present <br />signs for an extended period. <br />There is extensive evidence of recent (2008) activity at the site, besides the new signs. The upper highwall cut has been <br />cleaned and slightly extended, the upper working pad has been raised slightly with new rock, and new muck has been added to <br />the pile at the north end of the upper area. A small dozer is parked on the upper pad (Allis Chalmers model HD 6A). There are <br />dozer and backhoe tracks on all areas of the site. There is a small pile of pyritic, argillic muck (about 2 cu yds, near the dozer) <br />that was removed from the base of the cut wall. This material will weather and leach into the pad surface or beyond, and <br />should not remain at the site. <br />There is no sign of the upper shaft, even with the new earthwork on the upper pad, and it is assumed that it is backfilled or <br />sealed in a stable manner. The operator is reminded that the upper shaft is within the permit area and its safe closure is a <br />long-term responsibility under this permit. If it re-opens on its own or by the operator, it must be closed during reclamation. <br />The waste rock being removed from the upper cut wall is being piled on the north end of the upper pad area, against the older <br />piles of waste rock. This area is within the permit boundary, but is limited in size. The operator should be aware that the area <br />is approved for clean waste rock, and that the rock must be graded to a stable configuration during reclamation or backfilled <br />against the cut wall, but that all the disposed or emplaced waste rock must be contained within the permit boundary. <br />During past inspections numerous green steel posts have been observed around the site, and they were presumed to be permit <br />boundary markers. A few of them were observed during this inspection, but many of them were missing or knocked down. The <br />permit area must be delineated, by steel posts or another method, especially if operations are restarting. The present lack of <br />enough markers to delineate the permit area is noted as a problem on page one The corrective action is that the operator <br />must install markers sufficient to delineate the boundary of (all portions of) the permit area The correction date is shown on <br />the last page. The boundaries of the upper and lower portions of the permit area must be marked. The correction date will be <br />set to allow the operator to access the site as late as next summer if it is closed already this year. <br />The sloped road connecting the upper pad and the lower pad has been cleared of the fallen rocks that have been observed <br />covering it previously. The roadway has not been widened nor its grade changed, and removed rocks do not appear to be <br />littering the slope under the road. If the road is to be changed or more extensive earthwork is needed, the increased area of <br />disturbance will have to be included in the permitted acreage. At present there is no problem noted. <br />Many more rocks are still on the slope between the upper pad and sloped road, many of which will presumably slough down to <br />the road or lower bench. When these additional fallen rocks eventually have to be removed from the road, the operator must <br />ensure that they are placed or disposed of within the permit area. (Note: These rocks originate from the upper pad, and the <br />operator must begin containing them there and eliminate the practice of allowing them to go down the slope.) <br />The lower waste dump also exhibits new activity: there is new waste rock and the lower portal has been reopened. The new <br />waste rock has been placed out at the margins of the dump, and some of the loose boulders have rolled a short distance from <br />the toe of the lower dump. The dump and boulders appear to still be in the permit area (visually estimated in comparison with <br />the map) but it is hard to tell exactly since there are no permit boundary markers around the lower dump either. Those markers <br />must be installed in their correct locations (as explained above). <br />The portal was open but did not appear stable or safe, due to loose rock and rotten timbers. The operator must safeguard the <br />opening adequately to reduce the hazard when there is no mine personnel present. The cut wall above the adit may slough if <br />the operator does not install adequate timbering out onto the pad and backfill to cover it. Since the portal is near the permit <br />boundary, any sloughing may eventually extend outside the boundary.