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PERMIT #: M-1977-416 <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. The site was <br />not active on the date of the inspection. The entrance gate was locked, and there were no fluids, ore or <br />equipment stored on the surface. There is one building on the site, which did not contain any equipment or <br />other items. The building's door was found open and the interior had been subjected to minor deterioration <br />from the elements. This was not considered to be a problem in the context of this inspection, but the <br />operator should secure and maintain the building to retain its usefulness. <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 to be adequate. <br />Gen. Compliance With Mine Plan: <br />The portal was backfilled and also secured with a locked grate to prevent unauthorized entry. The site is <br />currently inactive, and has been cleaned up and made stable. <br />This mine is part of the "Sunday Group" of mines. During the last phase of mining at the neighboring mines of <br />the "Sunday Group" this permitted mine was not used for any underground access or haulage of ore, but the <br />portal and surface area were maintained in good condition. <br />Revegetation: <br />There has not been any revegetation seeding performed, though there is a large area on the northern part of <br />the permit where some seeding could be performed and not limit future activities on the site. The operator <br />has recently been monitoring and successfully treating the Halogeton infestation on the pad area and roads, <br />and has diminished the amount of Halogeton considerably. There were no other noxious weeds observed. <br />Sediment Control: <br />The sediment control berms in the lower, northern flat area of the permit appeared to be in good condition. <br />The roadway berms, dips and sediment catchments in the upper, southern portion of the permit appeared to <br />be recently cleaned and maintained, and fully functional. <br />Signs and Markers: <br />The ID sign was posted on the entrance gate and the corner markers were observed. <br />All activities performed should be reported to the Division annually, including opening or closure of the portal, <br />building or roadway maintenance, debris clean-up, seeding or weed control, and sediment/runoff control. <br />All responses to this report should be directed to this inspector at the Division's Durango Field Office: <br />DRMS <br />691 CR 233, Room A-2 <br />Durango, CO 81301 <br />Tel: 970-247-5193 <br />Page 2 of 4