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PERMIT #: P-2011-001 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: March 2, 2011 <br />OBSERVATIONS <br />This was a follow up pre-operation inspection of the proposed prospecting site named the Stanley Mine; <br />DRMS file No. P-2011-001. The applicant is Empress Gold Mining and Milling, Inc. This site is located <br />approximately one mile west of Idaho Springs, Colorado in Clear Creek County. I, Jared Ebert with David Bird <br />of the Colorado Division of Reclamation, Mining and Safety (Division) conducted the inspection. Mr. Ken Reid <br />of Empress Gold Mining and Milling, Inc. met us at the entrance to the adit, but did not accompany us during <br />the inspection inside the adit. <br />During the previous inspection of the site conducted on February 17, 2011, the Applicant did not have a key to <br />access the proposed adit to be used for the operation. This inspection was conducted to evaluate the <br />condition of the adit. Initially, the adit has a solid wood floor, ceiling and walls. However, after about 20 to 30 <br />feet there is much less timbering. An old air vent and what appears to be a water pipe exists in the adit. A <br />small rail system travels along the adit floor. Much of the timbering appears to be damaged and stressed. The <br />adit narrows and widens in various locations. On average the adit was four to five feet wide and five to six <br />feet tall. About 200 to 300 feet back into the adit a stope is connected to the adit on the left. This area was <br />bared off by several old timbers. According to Mr. Reid, old dynamite was stored in this area. <br />At approximately 700, feet the Division observed the cave-in described in the application. The entire adit was <br />closed off at this point. No water was observed seeping through the cave-in material and the floor was dry for <br />the majority of the adit. A significant amount of mine workings, other shafts and stopes exist below this adit. <br />Given this and the overall dry condition of the adit, it is unlikely a significant amount of water exists in the adit <br />beyond the caved-in area. The Division is less concerned about the possibility of acid mine drainage occurring <br />as a result of the adit clean out/timbering operation discussed in the permit application. <br />One of the Division's concerns in regards to the surface disturbance is the improvement and construction of <br />the concrete lined dump pit. The Applicant has not submitted an approvable plan for the reclamation of this <br />facility. Based on the Applicant's response to the Division's 2nd adequacy review, the Applicant would like to <br />leave this material and feature in-place until they have obtained a mining/milling permit for the site. While <br />the Division understands the logic behind this, the Division cannot assume the Applicant will obtain mining <br />and milling permit. Thus the Applicant must submit a plan to reclaim this waste pit and deal with the rock <br />material it will store. Or, the Applicant could store this material in a stockpile just outside the adit on top of a <br />HDPE liner with a storm water berm and cover temporarily until prospecting is complete and then place the <br />material back into the adit. This will be discussed in further detail in the next adequacy review. <br />Page 2 of 5