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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1981-185 <br />INSPECTION DATE 6/3/10 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred in response to a citizen's complaint from Dave Linden, dated May 8, 2010 and received <br />by the Office on May 10, 2010. On May 26, 2010, the Office also received a complaint from Lisa Giovanniello, by <br />email, which was addressed to Marianna Spishock (La Plata County Code Enforcement), and copied to the Office. <br />As a matter of policy, the Office conducts investigations in response to written complaints and this investigation <br />occurred in response to the written complaint submitted by Mr. Linden. As a point of clarification the Office is <br />forwarding copy of this inspection report to Ms. Giovanniello and Ms. Spishock. <br />Mr. Linden raised issues at the Idaho Mill, M-2006-069; Idaho Mine, M-2010-003; and the May Day Mine, M- <br />1981-185. This report is limited to observations for the May Day Mine. Observations specific to the Idaho Mill <br />and/or Idaho Mine are recorded in a separate report for those files. This report is accompanied by copy of the <br />complaint from Mr. Linden, email correspondence from Ms. Giovanniello and 15 photos. <br />This report identifies two problems and one possible violation of law occurring at the site. Details of the problems <br />and possible violation are provided herein. Corrective actions and the deadlines wherebysuch corrective actions <br />must be completed appear on page five of this report. <br />On November 12, 2009, the Colorado Mined Land Reclamation Board (Board) found Wildcat Mining Corporation <br />(Operator) in violation of the conditions of Permit M-1981-185 (Violation MV-2009-035). The violation occurred <br />when the Operator constructed a new portal at the Level 1 area prior to updating the permit and financial <br />warranty to address the new portal. Violation MV-2009-035 was signed and issued December 10, 2009. The <br />Cease and Desist Order for Violation MV-2009-035 prohibited all mining related activities, including reclamation <br />and site maintenance, with the exception of relocating 5,000 cubic yards of ore materials from an underground <br />stope to the portal pad at the Level 1 area. On February 10, 2010, the Board found a second violation of permit <br />conditions (Violation MV-2010-001). This second violation occurred when the Operator constructed an <br />unpermitted mill facility within the unpermitted portal. The Cease and Desist Order for Violation MV-2010-001 <br />prohibited all mining related activities at the May Day Mine. Violation MV-2010-001 was signed and issued March <br />5, 2010. As of March 5, 2010, all mining related activities at the May Day Mine are prohibited. The Board also <br />ordered the Operator to update the reclamation permit to address all major components of the operation within <br />180 days, due September 1, 2010. The Operator attempts to resolve the corrective actions of the two violations <br />through an application to amend the reclamation permit (AM-01). AM-01 was filed with the Office on April 6, <br />2010. During a May 13, 2010 Board hearing, the Board modified the corrective action deadline of Violation MV- <br />2010-001, to require the Operator to attain conditional approval of AM-01 byJuly 5, 2010, and attain issuance of <br />the amended permit by September 1, 2010. The Office's decision date for AM-01 is July 5, 2010. <br />The May Day Mine is approved for 9.9 acres permit area, which includes 3.44 acres at the Level 1 portal, 3.31 <br />acres at the Level 2 portal and 3.14 acres at the Level 3 (Lamb) portal. All three portals pre-date the permit. Pre- <br />permit activities included the excavation of extensive underground workings and end-dumping of waste rock <br />materials at each of the portal openings. Topsoil was not salvaged during the pre-permit activities and appears <br />not available for reclamation purposes. The reclamation plan and warranties address closure of the three portals <br />and stabilization of the associated waste rock stockpiles. The three areas of the permit are not contiguous but are <br />joined by historic access roads which pre-date the permit and were not included within the permit boundary.