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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1981-185 <br />INSPECTION DATE 6/3/10 <br />INSPECTOR'S INITIALS WHE <br />Unapproved Access Road from CR 124 to La Plata Bridge - Construction of the unapproved access road resulted <br />in Violation MV-2009-007, issued to Wildcat Mining Corporation for the Idaho Mill. Continued use of the <br />unapproved access road, for mining related purposes, resulted in Violation MV-2009-033, which was also issued <br />to Wildcat Mining Corporation for the Idaho Mill. Violation MV-2009-033 was signed and issued December 10, <br />2009. During a May 13, 2010 hearing, the Board modified the Cease and Desist Order for Violation MV-2009-033 <br />to allow the Operator to conduct a geotechnical investigation of the illegal road. The geotechnical investigation <br />was necessary to develop an engineering plan, whereby the road might be fixed, to be submitted for review and <br />approval by the Office. The geotechnical investigation occurred on May 22, 2010. The correspondence from Ms. <br />Giovanniello, dated May 26th, correlates with the May 22"d geotechnical investigation. However, the geotechnical <br />investigation utilized a rubber-tired backhoe and not tracked equipment. During this June 3rd inspection, the <br />Office observed grouser marks, evidence of tracked equipment, on the unpermitted road and is investigating the <br />potentially unapproved use of the road. <br />Level 3 (Lamb) Area - Evidence of recent activity at the Level 3 area was not observed. An appropriate mine <br />identification sign, required by Rule 3.1.12(1), was not posted. Permit boundary markers, required by Rule <br />3.1.12(2)(a), were not observed. The historic portal has collapsed. Evidence of portal drainage was not observed. <br />The wood shack has partially collapsed. Reclamation liability at the Level 3 area appears to be appropriately <br />addressed by the existing reclamation plan and financial warranty. <br />Level 2 Area - See photos one through five. Evidence of recent activity at the Level 2 area was not observed. An <br />appropriate mine identification sign, required by Rule 3.1.12(1), was not posted. Permit boundary markers, <br />required by Rule 3.1.12(2)(a), were not observed. A spring, possibly associated with mine drainage, was observed <br />nearby the portal. Discharge from the spring was visually estimated at two gallons per second (gpm). One 55- <br />gallon drum, apparently containing waste oil, was lying on its side nearby the spring and was dripping its contents <br />from the bung to the ground. Outflow from the spring, and snowmelt from the portal area, visually estimated at <br />10 gpm, report directly to Little Deadwood Creek. Oil sheen was not observed on the outflow. A portion of Little <br />Deadwood Creek, located immediately adjacent to the Level 2 portal, was partially obstructed by mine related <br />debris. Pursuant to Rule 3.1.6, the Operator must relocate all hydrocarbons to an appropriately prepared <br />location, similar to the containment facility currently present at Level 1. Pursuant to Rule 3.1.6, the Operator <br />must remove the mine related debris inappropriately placed in Little Deadwood Creek nearby the Level 2 portal <br />area. <br />Permit documents indicate National Pollutant Discharge Elimination System (NPDES) permit CO-0036781 had <br />been issued by the Colorado Department of Public Health and Environment, Water Quality Control Division, for <br />the operation. <br />Level 1 Area - See photos six and seven. Evidence of recent activity at the Level 1 area was not observed. Mine <br />identification sign was posted. Permit boundary markers, required by Rule 3.1.12(2)(a), were not observed. <br />Sometime between the DRMS inspections occurring on April 8 and April 30, 2010, the adit collapsed at the Level 1 <br />portals. Both portals are obstructed. Portions of the illegal mill facility are buried by debris. The Operator must <br />amend AM-01 to address the collapse and provide a plan for repair of the collapsed portal. As noted above, the <br />Operator has been ordered by the Board to achieve approval and issuance of AM-01 by September 1, 2010. <br />However, the Office's decision date for AM-01 is July 5, 2010. If additional time is necessary to respond to the <br />adequacy issues identified by the Office, please request an extension to the decision date.