2009-06-25_INSPECTION - M1983141 (2)

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MINE ID # OR PROSPECTING ID#: M-1983-141 PAGE: 2 INSPECTION DATE: 5-6-09 INSPECTOR'S INITIALS: ACS OBSERVATIONS This inspection was conducted responding to a report by Mark Steen, a representative of landowners of the Cash and Who Do Mines, that water was being pumped from the Cash Mine pump and being discharged into the Who Do Shaft. The inspectors checked at the Gold Hill Mill (permit no. M-1994-117) office trailer, but there were no Mount Royale personnel on site. The Cash Mine well was inspected; it was not being pumped, and no pipelines or hoses were connected to the well head (there are actually two well heads at this location). The well head seal on the Cash Mine well was not secured. The well seal must always be secured when unattended. Also, the State Engineer may require well disinfection following removal and prior to replacement of the well seal. There were pipes and hoses strung from the well area in different directions, including toward the Who Do Shaft. One of the pipelines runs from the Cash Mine well to the Gold Hill Mill. In previous discussions with Matt Collins of Mount Royale Ventures, he stated that water has periodically been pumped from the well up to the mill and tailing pond. The Mount Royale Adit area was inspected. The monitoring well in this area was not locked. The plastic cap in the well tubing was not fully engaged because the rope attached to the dedicated bailer prevents the cap being pressed down firmly. While the Division understands the usefulness of dedicated bailers and ropes, monitoring wells must be capped and locked, so another method of securing the bailer rope must be employed. See problem PB-1 on page four of this report. The secondary escape-way shaft located immediately above the Mount Royale Adit area was inspected. This shaft is not described in permit amendment AM-02 to the Cash and Who Do permit, is not bonded for closure and reclamation, and appears to be outside the permit area. See PB-02 on page four of this report. An overall inspection of the hillside from the Gold Hill Mill down to county road was conducted. A variety of tubings, hoses, power cables, and pipelines strung up and down and across the hillside were observed. These include the water line from the Cash Mine well to the Gold Hill Mill discussed above, and what appear to be tailing lines from the mill down to the escape-way adit (labeled CM-8 on the AM-02 map) and to the escape-way shaft discussed above. Also observed was a pipe that was discharging and located just above the road down to the Who Do area and