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PERMIT #: M-1984-041 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: June 2, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Stephen Onorofskie, representing the Operator, was present during this inspection. <br />Photographs are included at the end of this report in order to illustrate some of the conditions observed <br />during this inspection. <br />The Eagle-Gypsum Mine is located approximately 2 miles north of Gypsum and accessed from Trail Gulch Road <br />(CR 51). The site is a 112c operation that includes a total of 830 permitted acres. The Division currently holds <br />a financial warranty amount of $1,429,700.00 for this site. The Division will review the reclamation costs for <br />this site in order to ensure the financial warranty reflects the actual current cost of fulfilling the requirements <br />of the Reclamation Plan. The Operator will be notified if the Division determines that the current financial <br />warranty amount is insufficient. <br />Adequate mine identification signage was noted at the entrance to the site. <br />In annual reports submitted by the Operator, affected areas at the site are given the following designations: <br />Former Mine A, Former Mine B and New Mine Area. These designations will be used in this report. Former <br />Mine A includes approximately 19.05 acres that were affected by operations prior to 1991. Except for the haul <br />road, this area has been backfilled, graded and reseeded in accordance with the approved Reclamation Plan. <br />Reclaimed slopes in this area appeared to be stable with no signs of erosion. Vegetation is becoming well <br />established in this area. <br />Former Mine B, located approximately 0.7 miles southeast of Former Mine A, includes approximately 92.93 <br />acres that were affected by operations from 1991 through 2007. The resource in this area has been depleted. <br />The highwall slopes and benches have been graded in accordance with the approved Reclamation Plan, as <br />revised through AM2 and TR3. The benches have been vegetated. Re-sloping and final grading of the active <br />mine area were in progress during the time of this inspection. <br />The New Mine Area is located approximately 0.7 miles northeast of Former Mine B. This area was added to <br />the permit in 2001 through AM3. The mining method employed in this area occurs in a similar fashion to that <br />used in Former Mine B. As the active mining area is lowered, a highwall is created with an approximate <br />0.7H:1V slope. After the ore is depleted from an area, the slopes are to be backfilled with waste rock and <br />graded to 2.5H:1V. Approximately 4.4 acres of previous highwall, north of the active mine area, had been <br />graded and seeded, according to the Operator's 2010 annual report. <br />Noxious weeds were not observed at the site during this inspection. <br />No problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone number (970) 243-6299. <br />Page 2 of 3