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OBSERVATIONS <br />PERMIT #: M -1983 -011 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: June 16, 2011 <br />This pre- operation inspection was conducted by the Division of Reclamation, Mining and Safety (Division) in <br />order to observe and document onsite conditions at the site prior to consideration of the 112 conversion <br />application submitted by the Operator. Kay Blecha (Operator) and Angela Bellantoni (Operator's consultant) <br />were present during this inspection. Photographs are included at the end of this report in order to illustrate <br />some of the conditions observed during this inspection. <br />The Willow Creek Mine is located approximately 9.6 miles southwest of Leadville, and accessed from CR 24. <br />The approximate GPS coordinates of the main site entrance are 39.122006o, - 106.366263o. The site is <br />currently permitted as a 110 (placer gold mining) operation, but has submitted a 112 conversion application in <br />order to increase the permitted area from 9.5 acres to 42.44 acres. <br />The Division conducted an inspection of the site on October 14, 2010 and found that the Operator had <br />affected land outside of the approved permit area. On January 5, 2011 the Mined Land Reclamation Board <br />(Board) found the Operator in violation of section C.R.S. 34 -32 -109, issued a Cease and Desist order, and <br />imposed that the Operator provide all materials necessary to allow for Division approval of an amendment or <br />conversion application in order to incorporate all lands affected by the mining operation into the approved <br />affected area. The Operator submitted a complete 112 conversion application on May 2, 2011. <br />The Division currently holds a financial warranty amount of $17,000.00 for this site. In order to ensure the <br />financial warranty reflects the actual current cost of fulfilling the requirements of the Reclamation Plan, the <br />Division will review the reclamation costs for this site as part of the 112 conversion application review process. <br />An adequate notice was observed, posted at the entrance to the site, in accordance with Rule 1.6.2(b). An <br />adequate mine identification sign was also noted at the entrance to the site, in accordance with Rule <br />3.1.12(1). The proposed 112 permit boundary was adequately marked with wooden posts, rebar stakes, and <br />fencing. <br />Approximately 1.3 acres of United States Forest Service (USFS) land, lying outside and west of the approved <br />(110) affected area had been disturbed by the mining Operation prior to the October 14, 2010 inspection. This <br />land has not been included in the proposed 112 permit area. The applicant has been coordinating with the <br />USFS in order to develop a Plan of Operations for reclaiming this disturbed acreage. <br />During the October 14, 2010 inspection, various mining related and unrelated chemical containers, old <br />equipment and debris were noted at the site. It was confirmed during this inspection that all of the chemical <br />containers had been removed from the site, as well as much of the other debris and old equipment. The <br />Operator stated during this inspection that more of the old equipment was scheduled to be removed in the <br />near future as well. <br />No other 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 <br />