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<br />MINE ID # OR PROSPECTING ID # M-1978-091 UG
<br />INSPECTION DATE 11/13/08 INSPECTOR'S INITIALS RCO, SSS
<br />OBSERVATIONS
<br />This inspection was performed by the Division as partof its monitoring of Hard Rock/Metals 110d permits, and due to receiving
<br />a report from BLM of late season surface flows in Deadman Gulch. The operator's agent was contacted about the scheduled
<br />inspection. The operator was at the site during the inspection, as well as agents representing the operator, Karmen King and
<br />Mike Thompson of Gault Group, Inc. were present during the inspection. Also onsite was Mr. Stan Whinnery. There were
<br />several inches of fairly new snow on the access road and on some of the permitted area, but the snow did not prevent access
<br />to or inspection of the site. There were no sacks of ore at Vickers Ranch. The 6 Level and 3 Level areas were both inspected,
<br />including areas that were added as part of the recent Amendment AM-3.
<br />The parties present checked some of the conditions and features underground at the 6 Level. The adit has been extensively
<br />timbered, reinforced and spiled for a couple hundred feet, resulting in a stable and dry adit. The wooden timbers were sprayed
<br />with a fire retardant also. The water level in the underground sump was observed to be about four feet below "full." The sump
<br />was driven on a slight decline, and with the low water level the far end of the sump was visible. The sump was estimated to be
<br />about 60 or 70 feet long. The operator recently constructed a series of concrete bulkheads in a side drift near the sump,
<br />creating three "tanks" in which water had been impounded for the exploratory drilling in 2008. The tanks were reported to be
<br />empty at the time of the inspection. The 2008 drill stations and drill gallery farther in the mine were not inspected.
<br />Richmont Mines had been working at the site in 2007 and 2008, performing some improvements and clean up. They and the
<br />contract drillers are no longer working at this mine, and they took their equipment from the site, leaving the 6 Level pad clear of
<br />much of the former debris. There is presently no ore, ore processing equipment or mining equipment at the site. The surface
<br />work they performed at the site in 2008 included removal of debris from the 6 Level pad, but most of those materials removed
<br />were relocated elsewhere onsite by dumping them at the 3 Level dump. Some of the mined muck that had accumulated near
<br />the former ore crusher site has been pushed down the face of the dump. This practice should cease, since this material is
<br />pyritic and acid-generating, and must remain contained (behind berms, under capping, etc.). The 6 Level pad is bermed, with
<br />no change in the scant vegetation present on the face.
<br />The 6 Level pad is graded to drain toward the portal and cut wall. The pad is capped by'inert material reportedlytaken from the
<br />3 Level waste dump. Gulch drainage still reports to the lined ditch that was installed in 2007. The lined ditch has not been
<br />diverted, modified or added to, and increased flows next spring will result in more slope damage. Amendment AM-3 was
<br />approved in September by DRMS to allow installation of an engineered pipeline, but it has not been installed yet. The operator
<br />stated that BLM has not issued its written approval yet, which was the cause of the delay. The operator is correct in knowing
<br />that obtaining BLM's approval is important, but he is also concerned that the 2008 construction season is quickly closing. If the
<br />installation does not occur, further damage will occur. It is hoped that BLM issues its approval promptly, so that the pipeline
<br />can be completed in 2008. (At the very least, if the pipe cannot be installed in 2008, the operator must intercept flows through
<br />the lined ditch and divert them down the former thalweg at the south edge of the dump, to prevent slope failure and hydrologic
<br />damage.)
<br />The two piezometers at the south edge of the 6 Level pad were inspected. They are capped and locked. The strata and
<br />aquifers that were penetrated were logged and will be described in a report to be provided to the Division. The third piezometer
<br />planned for intercepting a fault at the north end of the pad was not drilled.
<br />The gulch flow was inspected at the upper end of the liner, and was estimated to be about 1 gpm. Down near the toe of the 6
<br />Level dump face the three toe seep locations were also checked. No seeps were flowing, but there was an estimated 1 gpm
<br />flow at the thalweg nearby, which appeared to return to underground flows in a short distance.
<br />The borrow area at the 6 Level pad is still vulnerable to sloughing, though the permit boundary has been extended up the hill
<br />farther above the top of the cut, reducing the near-term probability of an offsite slope failure. The slope is still unstable, and the
<br />operator is reminded that the borrow area must still be buttressed or backfilled for stability.
<br />The 3 Level portal and dump area were inspected. The debris from the 6 Level, mentioned above, which includes some non-
<br />mining-related trash, was dumped down onto the lower slope of the dump. The debris placement was random, not compacted
<br />against the slope, and it could slough down the hill or blow away, either of which could result in offsite damage. Some
<br />mineralized muck from the 6 Level dump and workings was also dumped down the slope in 2008. It too is not well placed or
<br />contained and should be dozed into a stable configuration. The operator is urged to properly place these materials to prevent
<br />their movement; Other various items were observed at the 3 Level pad area, including several full pallets of new drill core
<br />trays, old lead/acid batteries, timbers and ladders, sheet metal, and ventilation and ore processing equipment.' The debris
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