2009-12-17_INSPECTION - M1981185

• Permit No: M1981185
• IBM Index Class Name: INSPECTION
• Doc Date: 12/17/2009
• Doc Name: Insp Rpt
• From: DRMS
• To: Wildcat Mining Corporation
• Inspection Date: 11/24/2009
• Email Name: WHE
• Media Type: D
• Archive: No

(Page 4)
MINE ID # OR PROSPECTING ID # M- 1981 -185
INSPECTION DATE 11/24/09
INSPECTOR'S INITIALS WHE
The newly constructed mill facility is not addressed by the existing mine plan, reclamation plan or financial
warranty. The Operator has not demonstrated that such mill facility is compliant with the performance standards
of Rule 3.1, as required under Rules 6.3.2, 6.3.3 and 6.3.4. The existing permit does not explain the measures to
be taken to reclaim this new mill facility in accordance with the requirements of C.R.S. 34 -32 -116, as required
under C.R.S. 34- 32- 110(2)(a)(IX) and 34- 32- 115(4)(g). Therefore, the Division has imposed a 60 -day deadline by
which the Operator must file a modification to the permit through the Amendment process, per Rules 1.10(2), (3),
(4) and (5), to fully describe all major components of the mining operation including, but not limited to, the new
mill facility at the Level 1 portal. The Amendment must be filed with the Division no later than February 15, 2010.
The Operator has agreed to be bound by all requirements of the Act and Rules and is obligated to maintain his
permit and comply with his permit conditions. The Division believes that by failing to amend the permit, to
incorporate the new mill facility prior to the construction of the mill facility, the Operator has violated the
conditions of his own permit. Pursuant to C.R.S. 34 -32- 124(1), the Division has scheduled the possible violation
for consideration by the Board, to occur during the February 10 -11, 2010 Board meeting.
Notice to Increase the Financial Warranty— Pursuant to Rule 4.2.1(1), the Division has reviewed the current cost
of reclamation totaling $148,329. Enclosed please find 24 pages of summary, worksheets and data sheets utilized
by the Division to estimate the current cost of reclamation. Therefore, the existing $38,209 financial warranty
appears insufficient to ensure the completion of reclamation. Pursuant to Rule 4.2.1(2), the Operator has 60 days
from the signature date of this inspection report, by February 15, 2010, to increase the financial warranty to total
not less than $148,329.
Response to this inspection report should be directed to the Division's office in Durango at 691 County Road 233,
Suite A -2, Durango, CO 81301, to the attention of Wally Erickson, phone [phone].
I & E Contact Address
NAME Mike Clements
OPERATOR Wildcat Mining Corporation
STREET 3643 Baker Street
CITY /STATE /ZIP San Diego, CA 92117
cc: Steve Shuey, DRMS (by email)
❑ CE
❑ BL
❑ FS
❑ HW
X Amy Aweida
X MSHA, Brian Goepfert (by email)
X R Squared, Inc., George Robinson
X Wildcat, Durango, CO
X Christopher Neumann, Esq.
X La Plata County, Victoria Schmitt, PE