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PERMIT #: M-1983-011 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: October 14, 2010 <br />OBSERVATIONS <br />This inspection was conducted, by Dustin Czapla and Steve Shuey of the Division of Reclamation, Mining and Safety <br />(DRMS), in response to a citizen complaint (enclosed) received by DRMS on September 24, 2010. Kay Blecha <br />(Operator) was present during the inspection. Photographs are included at the end of this report to illustrate some of the <br />conditions observed during the inspection. <br />The Willow Creek Mine is an open-pit, placer gold mining operation. The site is located in Lake County, approximately <br />9.6 miles southwest of Leadville, and accessed from CR 24. The approximate GPS coordinates of the main site entrance <br />are 39.122006°, -106.366263°. The approved affected land consisits of 9.9 acres. The active pit area consisted of <br />approximately 6 acres during the time of this inspection. No chemicals are authorized for use in processing the ore at this <br />site. <br />The boundaries of the affected area were not adequately marked, as required pursuant to Rule 3.1.12, making it difficult <br />to discern the approved affected area for the site during this inspection. <br />Three camp trailers were observed near the shop area. The ground surface beneath the trailers was freshly gravelled and <br />graded, making it evident to DRMS inspectors that the trailers had recently been placed in this area. Upon inquiry as to <br />the former location of. the trailers, Mr. Blecha showed DRMS inpectors an area east of the pit area, and outside the <br />approved affected area, where the trailers had been located. DRMS inspectors were unable to verify whether or not septic <br />tanks had been installed here, but did observe portions of the area that had been recently gravelled and graded. A small <br />amount of septic material was noted on the ground in this area. <br />As previously stated, the active mining area consisted of approximately 6 acres at the time of this inspection. Ponds and <br />processing equipment were centrally located in the active mining area, with spoils piles located just east of the processing <br />area. Most of the mining face on the west side of the pit area had been graded to 3H:1 V or gentler, excluding the <br />southwest portion. Some of the excavation on the west side of the pit has extended past the approved affected area <br />boundary onto U.S. Forest Service land. This has been noted as a problem in this inspection report for failure to protect <br />areas outside of the affected land from slides or damages occurring during the training operation. <br />A topsoil stockpile, containing approximately 100 cubic yards of material, was located in the southwest portion of the pit <br />area, adjacent to the mining face. Another topsoil stockpile was noted at the northeast end of the pit area. This stockpile <br />was placed, in order to form a berm for stormwater management according to the Operator, at the down-gradient side of <br />the pit. This has been noted as a problem in this inspection report. Pursuant to Rule 3.1.9(3), topsoil shall be stored in <br />places and configurations to minimize erosion and located in areas where disturbance by ongoing mining operations will <br />be minimized. <br />An unleaded fuel tank was observed lacking adequate secondary containment, at a location just north of the shop area and <br />within the affected area. The containment structure observed consisted of two sheets of synthetic lining material <br />overlapped in the center, with the seam running the length of the containment structure. The two sheets were not welded <br />at the seam, thus creating a permeable liner. It should be noted that during the time of this inspection the tank was empty. <br />This has still been noted as a problem in this inspection report though, because it is assumed by the inspector that the tank <br />has and will be used for the mining operation, and will require adequate secondary containment should any future use of <br />the tank occur. Another oil drum was noted near the shop building lacking secondary containment. All storage tanks, <br />petroleum and any hazardous materials stored on site for any period of time shall have appropriate secondary <br />containment. <br />DRMS inspectors were unable to verify the use of mercury and nitric acid for ore processing during this inspection. No <br />evidence of these chemicals was noted in the main processing building/shop. The inspectors were unable to gain access to <br />a locked storage shed located just north of the main shop during this inspection, as the operator was unable to locate the <br />correct key for the lock. <br />Page 3 of 5