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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1981-185 <br />INSPECTION DATE 1/27/10 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred in response to three citizen complaints; one from Lisa Giovanniello, dated January 12, <br />2010 and received on January 14, 2010; one from Scott Collignon, dated December 27, 2009 and received <br />December 30, 2009; and another from Lisa Giovanniello, dated December 27, 2009 and received December 30, <br />2009. This report is accompanied by two photos and copy of the three complaints. <br />As shown in the photos, the Operator had not plowed recent snow-fall from -the unpermitted access road located <br />on lands owned by Fairview Land Corporation. Additionally, there were no tracks or trails in the snow cover for <br />the unpermitted access road. Observations made during the inspection and recorded in this report indicate that <br />the Operator is not using the unpermitted road to access the site. Therefore, the Operator appears to be <br />compliant with the Cease and Desist Order for Violation MV-2009-033, which prohibits use of the unpermitted <br />access road to support mining related activities. <br />There was a well established foot-trail in the snow for the historic access route, commencing at the end of the <br />residential driveways for 4432 County Road 124 and 4434 County Road 124, and progressing across USFS lands. <br />This historic access route was the approved route in the original May Day Mine permit. Such use (foot traffic) of <br />this established access route does not conflict with existing permit conditions or recent orders from the Mined <br />Land Reclamation Board. <br />On December 10, 2009, the Board issued Violation MV-2009-035 for failure to comply with the conditions of the <br />reclamation permit. The Cease and Desist Order for Violation MV-2009-035 prohibited all mining related activities <br />with the exception of relocating 5,000 cubic yards of ore materials from an underground stope to the portal pad <br />at the Level 1 area. Thus, during the time of this inspection the Operator could access the May Day Mine through <br />the historic route, located on USFS lands, and conduct mining activities limited to the relocation of 5,000 cubic <br />yards of ore materials, and remain in compliance with the Board's orders. However, a subsequent Cease and <br />Desist Order, associated with Violation MV-2010-001, did not include any such exception. and all mine related <br />activities are now prohibited as of March 5, 2010. <br />The Operator has submitted an application to.amend the May Day Mine permit to update the permit in <br />accordance with the Board's orders. The Office has completed a preliminary review of the application materials <br />and has found the amendment incomplete for the purposes of filing. <br />Response to this inspection report should be directed to Wally Erickson at the Division's office in Durango at 691 <br />County Road 233, Suite A-2, Durango, Colorado 81301, phone (970) 247-5469. <br />I & E Contact Address <br />NAME Mike Clements <br />OPERATOR Wildcat Mining Corporation <br />STREET 3643 Baker Street <br />CITY/STATE/ZIP San Diego, CA 92117 <br />cc: Steve Shuey, DRMS (by email) <br />? CE <br />? BL <br />? F=S <br />? HW <br />X Lisa Giovanniello <br />X Scott Collignon