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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2008-050 <br />INSPECTION DATE: 6-14-10 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining, and Safety (DRMS) for permitted sites. The October Mine Ore Stockpile is a 110d <br />reclamation project located south of John Brown Canyon above Gateway, Colorado. The 0.46 acre project is for <br />the removal of approximately 7,500 tons of pre-law ore stockpile that was left in place and uncapped. Nuvemco <br />proposed the removal of the ore stockpile and reclamation of the stockpile area. Nuvemco representatives were <br />invited to the inspection but did not attend. BLM representative Scott Gerwe accompanied the inspector on site <br />as well. <br />Due to unforeseen issues with the shipping destination the planned removal of the ore stockpile has not been <br />completed as originally planned. Nuvemco noted that no definitive information is available as to when the ore <br />pile will be removed. Current disturbance is a small area on the west side of the pile where approximately 3 truck <br />loads of material were shipped off site. Also the disturbance includes the turn around area for the trucks which <br />had topsoil pushed back into a berm. Total disturbance to the area is approximately a quarter acre. <br />The inspector and BLM representative reviewed the site to ensure that stormwater and erosion issues are <br />addressed to prevent off site impacts. Heavy winter snowfall and current rains have tested measures put in place <br />at this and other nearby sites. Berms, silt fencing, and other measures appear to have contained on-site <br />precipitation to the disturbed area. No off site run-on was observed at this time. No erosion or sedimentation <br />issues were noted. The area was reported to have been top seeded about a year ago. Plant species and <br />desirability could not be readily identified as vegetation coming up is very immature. The topsoil stockpile and <br />disturbed areas are stable at this time. <br />Signage was noted as not being in place per Rule 3.1.12 (1). This issue of concern was observed during the <br />November of 2008 inspection. The inspector noted that if the sign was not in place by the next inspection the <br />issue would be turned into a problem. Rule 3.1.12 (1) states a sign shall be placed at the entrance to the mine <br />which shall be clearly visible from the access road. The sign shall state (a) the name of the operator, (b) a <br />statement that a reclamation permit forthe operation has been issued by the Colorado Mined Land Reclamation <br />Board, and (c) the permit number. The inspector suggests putting the sign at the access road just before the ore <br />pile area, not at the main road. The location may provide some protection from theft or damage. The lack of <br />roper signage is noted as a problem, with the corrective action(s) and correction date specified on the last page <br />of this report. <br />Other than the need for a sign the site is neat and clean. No fuel tanks, structures or equipment are on site. The <br />ore pile while considered by definition as a toxic material is stable and disturbance to it has been very minimal. <br />The Division is reguestinp, that Nuvemco submit a letter to the Division and BLM outlinin- - the mining plan forthe <br />site. The original mine plan and reclamation plans called for a short term operation and reclamation. Plans were <br />reviewed with the short time frame in mind. By all appearances the original plans have stalled. If the materials <br />will not be shipped in the foreseeable future a Technical Revision may be required to address more permanent <br />stormwater controls and adjustment of timetables for reclamation of the site. A determination on the need for a <br />TR will be done after review of Nuvemco's response. Please note BLM must also agree to any changes proposed.