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(Page 4) <br />MINE ID # OR PROSPECTING ID # M-1990-057 <br />INSPECTION DATE 06/18/09 <br />INSPECTOR'S INITIALS PSH <br />Three temporary ore piles were observed east of the mill structure. The previous operator was required to <br />describe how temporary ore would be stored and how the area will be lined to prevent the contamination of <br />surface water and groundwater. This was not completed by the previous operator. Evidence of erosion from <br />the piles was observed during the inspection. Several options to control erosion were discussed with the <br />operator. To avoid a possible violation, the operator must within 30 days submit proof of erosion control <br />for the three temporary stockpiles. <br />The significant presence of sulfitic ore in the temporary ore stockpiles that have been in place longer than 180 <br />days could cause this operation to be classified as a Designated Mining Operation as defined in Rule 1.1(14). <br />Under the definition, it states that metal mining operation, permitted under Section 34-32-110 which do not <br />use or store designated chemicals, shall be exempt from the requirements applicable to Designated Mining <br />Operations, unless they have a potential to produce acid mine drainage in quantities sufficient to adversely <br />affect any person, property or the environment. To avoid a possible violation, the operator must, within 60 <br />days, submit documentation the ore stockpiles do not have the potential to produce acid mine drainage or <br />documentation the ore stockpiles have been protected from the potential to produce acid mine drainage or <br />documentation the ore stockpiles have been disposed of properly. <br />Small evergreen trees were observed growing from the tailings pond embankment. The tailings are currently <br />situated in an incised portion of the pond and are not currently contained by the embankment. However, <br />before utilizing the tailings pond for any future mining/milling related activity, the operator will need to <br />remove the trees and provide documentation of adequate engineering, construction and certification of the <br />reconstructed impoundment. <br />Hopemore Shaft <br />The mine property, equipment, supplies and lease rights have been transferred from Capital Gold Corporation <br />to Robert Calder. <br />No mining was taking place during the inspection. The mine has not been in use for several years. The last <br />reported activity,was in 1999. <br />Mr. Calder and Calais are in the process of obtaining a Tourist Mine permit from the Mine Safety and Training <br />Program. Mr. Calder stated the Conditional Use Permit from Lake County has been approved and a <br />preliminary inspection of the mine has been conducted by Joe Samek with the Mine Safety Program. <br />Mr. Calder intends to operate the site as a tourist mine in one level and mine the site on a different level. <br />Therefore, a reclamation permit and tourist mine permit will need to be held concurrently by the operator. <br />The site consists of the Hopemore and Hunter Shafts, hoist buildings and a shop building. The site was well <br />organized and maintained by Mr. Calder. <br />The BLM is currently re-surveying the mine claim boundaries. The results of the survey may affect the type of <br />bond required by the Division. The Division will notify the operator of any required changes to the financial <br />warranty, if necessary, under separate cover.