2009-06-26_INSPECTION - M1990057

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(Page 3) MINE ID # OR PROSPECTING ID # M-1990-057 INSPECTION DATE 06/18/09 INSPECTOR'S INITIALS PSH No fuel storage was observed or is planned at the site. The mill will purchase and truck water from Parkville Water District to the site. The proposed well will not be utilized until later in the operation once required permitting for the well is secured. A metal building containing grease was observed during the inspection. The operator stated the grease would be recycled within a month. On June 5, 1990, the Division approved the Hopemore & Leadville Mine with four (4) conditions to the permit. Calais is aware of the four conditions and stated in the 2009 annual report that they are committed to resuming milling operations and continue to file the appropriate permits, licenses and approvals with the appropriate agencies to resume operations. This includes addressing the four permit conditions prior to disposing of any additional mine tailing or other related material in the tailings pond. Approximately, 1000 tons of washed tailings are currently contained in the tailing pond. This material was deposited from the mill into the pond several years ago by Capital Gold. Prior to this disposal, the previous operator was required to submit compaction results regarding the pond liner. The previous operator submitted a written commitment to the Division stating that no additional tailings or mining related material will be disposed of into the pond until it can demonstrate that the pond was lined in accordance with the approved plan. The written commitment resolved the issue. The operator stated Lake County is requiring a liner be installed in the reconstructed pond. At the time of the inspection, the operator did not know how the tailings material in the pond would be handled during reconstruction of the tailings pond. The operator intends to construct the pond in cells capable of containing one to three years of tailings. The operator will be required to submit a technical revision to the Division to address the addition of the pond liner, cell construction and handling of the tailing material in the pond. The operator stated they are in the process of obtaining five APENs permits (three for the mill, one for the pond and one for trucking) to comply with the permit stipulation. Noxious and/or problematic weed infestation (Canada thistle) was observed within the affected area of the mill site. The infestation, if not controlled, will most likely hinder and/or delay successful reclamation of this site and contribute to off-site spreading and establishment of these weeds. Weed infestation is noted as a problem. The operator must, within 30 days, submit documentation of treatment for Canada thistle and other noxious weeds at the site. Within 60 days, a weed control plan developed in consultation with, and approved by, the appropriate local weed control authority must be submitted as a technical revision to this permit. Significant progress toward control of on-site weeds must be demonstrated within three years to avoid potential enforcement action. The approved permit states no chemicals will be used for the milling process. Gold will be processed by flotation and gravity methods. All chemicals and reagents are stored inside the mill. The storage area has a concrete floor and is locked, but does not have a secondary containment system. The Division required the previous operator to do an inventory of all chemicals stored on site. The previous operator submitted the inventory on October 2, 2001. A drum of Cyanobrick and two other unmarked drums were observed in the storage area during the inspection. The drums were not included in the previous inventory or observed during the last inspection. To avoid a possible violation, the operator must within 30 days submit documentation of removal of the drums from the site and of proper disposal or proper end use of the materials.