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PERMIT #: M-1978-039-HR <br />INSPECTOR'S INITIALS: RCO <br />INSPECTION DATE: April 20, 2011 <br />OBSERVATIONS <br />This was a routine inspection performed by the Division as part of its monitoring of 110d permits, and also to <br />inspect the proposed location of an Environmental Protection Facility: the lined ore pad. The site was not <br />active on the date of the inspection. The entrance gate was locked, the building was secured, the portal was <br />backfilled and secured with a locked grate to prevent unauthorized entry, fluids and ore was removed from <br />the surface, and all equipment was gone. <br />Backfilling and Grading: <br />There is a quantity of waste rock that was added to the western end of the dump surface, that was left in a <br />rough condition and should be graded smooth as part of site reclamation. The operator must ensure that <br />grading does not involve pushing any new material down the face of the dump or otherwise expanding the <br />size of the area of the dump. <br />Explosives: <br />A portable explosive magazine was onsite, but did not contain any explosives. The operator stated that it will <br />be removed before the mine reactivates, since it is not normally used for this operation. <br />Financial Warranty: <br />This permit is being amended to a DMO, and the bond will be recalculated when the amendment is finalized. <br />Currently the bond amount is considered adequate. <br />Gen. Compliance With Mine Plan: <br />The site is inactive, and the operator cleaned up the site of all fluids and contaminants, and stabilized the site. <br />The site will continue to be monitored and maintained. <br />The lower, eastern end of the pad is where the lined ore pad will be constructed. It consists of a level well- <br />drained surface that appears appropriate for this use. <br />Support Facilities On-site: <br />There is one building onsite, which was found to be secured against unauthorized entry and in good condition. <br />There is electrical power supplied to the site, and the transformers were present and fenced. <br />All activities performed should be reported annually to the Division, including opening or closing the portal, <br />maintenance to the building or roadway, debris clean-up, seeding or other reclamation, weed control, <br />sediment control, or reactivation of mining. <br />All responses to this report should be directed to this inspector at the Division's Durango Filed Office: <br />DRMS <br />691 CR 233, Room A-2 <br />Durango, CO 81301 <br />Tel: 970-247-5193 <br />Page 2 of 3