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OBSERVATIONS <br />PERMIT #: M- 1981 -185 <br />INSPECTOR'S INITIALS: WHE <br />INSPECTION DATE: June 2, 2011 <br />This inspection occurred as part of the Division's review process of an application to convert the existing <br />110(2) permit to a 112d -1 operation. The Applicant and Permittee, Wildcat Mining Corporation was <br />represented by George Robinson. The Division was represented by staff members Peter Hays, Tim Cazier and <br />Wally Erickson. Mr. Ray Ferguson, a local citizen, participated in the inspection. <br />Acid And Toxic Materials: <br />Industrial chemicals, utilized in metallurgical processing and including designated chemicals, were secured in <br />large shipping containers (Zircon) located at the May Day 1 area. <br />Explosives: <br />Evidence of recent blasting activities, since the 2009 construction of the illegal portal at the May Day 1 area, <br />was not observed. Explosives were not observed on site. <br />Financial Warranty: <br />The Division holds $148,329 financial warranty for M- 1981 -185, and $56,233 financial warranty for M -2006- <br />069, totaling $204,562 financial warranty. The total financial warranty for the site appears sufficient at this <br />time. <br />General Compliance With Mine Plan: <br />Mining and reclamation activities appeared dormant and thereby compliant with the Cease and Desist Orders. <br />Roads: <br />The illegal road, located on private lands and providing access from County Road 124, was littered with rock <br />fall and sloughed material from the cut slopes. The fill material, previously placed in wetlands, continues to <br />settle and creep, as evidenced by the listing pillars and dislodged cribbing. Evidence of recently conducted <br />work on the illegal road was limited to the installation of minor water bars, directing drainage to the fill slopes, <br />and minor excavation of material from the shoulder of the fill slope (photo). The recently completed work <br />appears to have been accomplished with hand tools. <br />Subsidence: <br />The glory hole was observed. According to Mr. Ferguson, the glory hole is located nearby the intersection of <br />the May Day fault and Idaho fault, and was originally the Discovery shaft. The Discovery shaft was the first <br />mining activity for the May Day Mine and was driven circa 1902. Later, the adit at May Day 1 was driven to <br />intersect the Discovery shaft. Neither the Discovery shaft nor the glory hole are identified or labeled on any of <br />the available mine maps or maps submitted under CN -01. The glory hole was visually estimated at 150 feet x <br />75 feet, with near vertical walls and of unknown depth. Mr. Ferguson indicated the glory hole provided <br />ventilation for the May Day 1 underground workings. <br />Slides and Other Damage: <br />Both portals at the May Day 1 were completely obstructed due to collapse. Portions of the illegal mill at the <br />May Day 1 were buried by the collapse. The portal at May Day 2 was partially obstructed due to rock fall <br />(photo). Roof bolts were exposed at the May Day 2 due to rock fall (photo). The portal at May Day 3 (Lamb) <br />was completely obstructed due to collapse. The Chief portal was partially obstructed due to rock fall (photo). <br />Page 2 of 5 <br />