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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2001-063 <br />INSPECTION DATE 9/24/09 INSPECTOR'S INITIALS RCO <br />OBSERVATIONS <br />This inspection was performed by the Division as part of its monitoring of Hard Rock/Metals 110(2) permits, and to check <br />the recent activities at the site. The site was not active at the time of the inspection, and the operator was not present <br />during the inspection. <br />No mining has occurred at this site since the permit was issued, and other activities carried out to-date have been <br />minimal. The old wooden structure at the portal opening (noted to be damaged in the Division's last inspection report <br />7/16/07) has been completely replaced with a 4' x 6' locking steel grated door anchored to the ribs and back with heavy <br />timbers and grouted rock. The permit ID sign used to be attached to the old wooden door, but it has not been re-installed <br />yet on the new steel door. Some of the permit boundary markers were observed to be in place (this inspector did not <br />seek out the permit boundary corners that are up the hill in the forest). The lack of a posted permit ID sign is not noted as <br />a problem in this report, due to the installation of the new door (which is the sign location utilized by the operator in the <br />past) but the operator must post an ID sign since a sign is required per Rule 3.1.12. (Please refer to this rule for the <br />proper sign content.) <br />There was a small trickle of water issuing from the portal, flowing down the road to the upper edge of the waste rock <br />dump, where it percolated into the ground. The water appeared to originate a short distance inby the portal door where <br />there was a small puddle, as well as immediately outside the portal where it was dripping from a visible vein. (Recall: the <br />portal is about 30 feet below Red Cloud Creek, which is presumed to be a source of this water.) The water in the puddle <br />and the surface flow did not exhibit any mineral staining. There was no observed seep at the toe of the waste rock dump <br />nor downhill in the ore storage area. <br />There is no new waste rock and no ore placed on the surface. There was no equipment and no contaminants at the site. <br />The stormwater ditches and control ponds are still intact though they are vegetated. There is no sign of erosion or <br />sedimentation on the site. The old steel tank and loose steel rail that have been observed outside the portal at each <br />inspection are still present. There was a new feature noted during this inspection: it appears that about 80 to 100 feet of <br />track (rails and ties) were pulled out of the underground workings and placed along the roadway in the area labeled as <br />"Reclamation Storage Site" on the map. This is not a problem, but this office is not sure if the track will be reinstalled in <br />the workings. The removal and plan to reinstall them should be clarified in the next annual report. There are also a <br />number of old timbers now scattered near the portal, probably taken from underground or the portal area, that now <br />constitute debris and will become a reclamation (cost) liability if not cleaned up. <br />There are a couple of new noxious weed infestations noted at the site: in the above-mentioned "Reclamation Storage <br />Site" and in the "Equipment Storage Area" (closer to the portal, west of the road). In the first area there is a mix of yellow <br />toadflax (Linaria vulgaris) and Canada thistle (Cirsium arvense) covering about 1500 sq ft. The second area contains <br />about there is about 800 sq ft of Canada thistle. These are state-listed noxious weed species and are required to be <br />controlled. The presence of these patches of weeds is noted as a problem in this report. There is no weed control plan <br />for the permit. The corrective action is for the operator to develop an adequate control plan (with the assistance of the <br />local weed control district, see address below), and commit to its implementation beginning in 2010. See the last page for <br />the correction date. (Note: the weed control plan must be added to the permit via submitting a technical revision. There is <br />no fee for a technical revision to a 110(2) permit.) <br />The site was apparently accessed by ATV, possibly by the operator for the recent portal door work, since traces of tire <br />tracks are visible. The BLM-approved (lower) portion of the access road was not used, since it exhibits no improvement <br />or use. It is presumed that permit area access was gained via ATV on the segment of road that is not authorized by BLM <br />for such use. The timber bridge at Henson Creek was also damaged, though the circumstances are not known. Issues <br />involving use of or damage to existing roads is not within the purview of DRMS, but the operator is reminded that BLM <br />requirements must be followed to maintain right-of-entry. If right-of-entry is lost there might be a possible violation of this <br />permit. Thde operator is reminded that vehicular access should not occur until an adequate culvert is placed at the <br />crossing of Red Cloud Creek, which is part of the approved plan. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to this <br />inspector at the Division of Reclamation, Mining and Safety, 691 County Road 233, Suite A-2, Durango, Colorado 81301. <br />(Please note: As of 7/1/08 the Durango Field Office moved to the new address, shown above. Please revise your <br />records as necessary.)