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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1978-091 UG <br />INSPECTION DATE 11/13/08 <br />INSPECTOR'S INITIALS RCO. SSS <br />items should be handled properly in 2009, since they are reclamation liabilities. The operator is reminded that the permitted <br />area is not licensed as a landfill, and that no more trash may be disposed of on the site. The 3 Level portal is presently <br />barricaded by means of a vent fan that was installed by Richmont. It may be used again when the mine starts up, and it may <br />remain until it is no longer needed, but that long-term closure will be required during final reclamation. <br />The required permit ID sign was observed posted at the entrance to the 6 Level pad. But not all of the permit boundary is <br />adequately marked. Since there was extensive activity at the site in 2008, and Amendment AM-3 expanded the permit <br />boundary, it is important that all of the permit boundary is visibly and durably marked. Rule 3.1.12 requires that the permit <br />boundary be marked adequately to delineate it on the ground. The operator must have a surveyor or other qualified party <br />accurately locate and mark the boundaries. The lack of properly located markers is especially evident above the 3 and 6 Level <br />cutwalls, and below the toe of the 3 and 6 Level dumps. Due to the lack of boundary markers a problem is noted in this report. <br />The corrective action is that the operator must mark the boundaries and provide evidence of such by the correction date <br />shown on the last page of this report. <br />The upper location where Deadman Gulch meets Hwy 149 was inspected for gulch flows, since this was where BLM reportedly <br />observed 20 gpm recently. Only about 1 gpm of clear water was seen to be flowing at this location at the time of the inspection. <br />The bond amount was recalculated as part of Amendment AM-3 in 2008. The updated amount is considered to be adequate, <br />but it had not been submitted as of the date of this inspection. The operator is reminded that since the bonded disturbance <br />already exists, that the bond must be submitted promptly. <br />No further items were observed during the, inspection. Responses to this inspection report should be directed to the Division of <br />Reclamation, Mining and Safety, 691 County Road 233, Room'A-2, Durango, Colorado 81301, Attn: Bob Oswald; phone no. <br />970-247-5193. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Kye Abraham <br />LKA International. Inc. <br />3724 47t' St. Ct. NW <br />Gig Harbor, WA 98335 <br />(copies sent by email, on the date shown at the end of this report): <br />Dave Lazorchak, BLM, Gunnison <br />Karmen King, Gault Group, Inc., Cortez <br />Ralph Grover, Hinsdale County Government, Lake City <br />cc: Tony Waldron, DBMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER