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October 18, 2010 C-1981-044/Williams Fork Mines KAG <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />N - Air Resource Protection N - Roads <br />N - Availability of Records N - Reclamation Success <br />N - Backfill & Grading R - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On-site <br />R - Hydrologic Balance R - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Kent Gorham of the Colorado Division of Reclamation, Mining, and <br />Safety. This underground site is essentially idle at the present time. No permanent employees are stationed at the <br />site. Access to the site is pedestrian from numerous locked gates that prevent unauthorized persons from entering <br />the property. Ground conditions on this day were wet and muddy due to ongoing rain. <br />Hydrologic Balance <br />Mine water was discharging from the 5-P5, 5-P6, and 5-P7 series of treatment ponds. The discharge appeared <br />clear. A strong H2S odor was noted. The conductivity was measured at between 1400-1500 umhos/cm. This <br />conductivity is consistent with total dissolved solids values of around 900 mg/l as sampled and tested during <br />quarterly sampling conducted under the approved CDPS permit. <br />A large hole was noted on the crest of the south embankment of pond 5-P5. The hole measured about 8-12 inches <br />in diameter and appeared to be 1-2 feet deep, possibly deeper. The hole appears to be a animal burrow or possibly <br />some sort of settlement feature. The hole did not appear to be jeopardizing the embankment stability at this time. <br />However, surface infiltration or additional animal activity could enlarge the hole and result in pond leakage or <br />failure. The operator should address this problem immediately. <br />An alluvial well in the pasture was inspected. This well is located in the center of Section 31, T6N, R91 W. The <br />well is marked with a number "6" in faded red lettering (see photo section of this report). It is not clear from <br />review of Map 11 of the approved permit that this well is part of the approved hydrologic monitoring plan. Well <br />AVF-6 alluvial well is located a significant distance to the south. Well AVF-5 is located immediately south of <br />pond 5-P5. All ground water wells are required to be marked and identified in accordance with Rule <br />4.05.13(1)(e). The operator should clearly label and identify all ground water wells at this site. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 5