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of �o�o COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br /> MINERALS PROGRAM INSPECTION REPORT <br /> PHONE: (303) 866-3567 <br /> JK <br /> 1876 <br /> The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br /> noted below. This report documents observations concerning compliance with the terms of the permit <br /> and applicable rules and regulations of the Mined Land Reclamation Board. <br /> MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br /> Cash&Who Do Mines M-1983-141 Gold and silver Boulder <br /> INSPECTION TYPE: INSPECTOR(S): INSP.DATE: INSP.TIME: <br /> Monitoring Michael A. Cunningham August 24,2011 10:30 <br /> OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br /> AGC Resources LLC NA 110(2)-Hard Rock Limited Impact <br /> REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br /> Normal I&E Program None $175,900.00 <br /> DATE OF COMPLAINT: POST INSP.CONTACTS: JOINT INSP.AGENCY: <br /> NA Colorado Health Department Local Government <br /> WEATHER: IN TOR'S SIGNATURE: SIGNATURE DATE: <br /> Clear September 16,2011 <br /> The following inspection topics were identified as having Problems or Possible Violations. OPERATORS <br /> SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br /> WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br /> Possible Violation is indicated,you will be notified under separate cover as to when the Mined Land <br /> Reclamation Board will consider possible enforcement action. <br /> INSPECTION TOPIC:Availability Of Records <br /> PROBLEM/POSSIBLE VIOLATION: Probable Violation: The Operator has not provided the Division with the <br /> Annual Water Monitoring Report for 2009 and 2010. This is a possible violation at this time pursuant to: C.R.S. <br /> 34-32-124 for failure to comply with the conditions of an order, permit, or regulation. <br /> CORRECTIVE ACTIONS:This possible violation will require a hearing before the Mined Land Reclamation Board. <br /> The schedule and other details for the MLRB hearing will be provided under a separate document to be sent via <br /> certified mail to the operator. <br /> CORRECTIVE ACTION DUE DATE: 10/12/11 <br /> INSPECTION TOPIC: Hydrologic Balance <br /> PROBLEM/POSSIBLE VIOLATION: Probable Violation:The 3rd level adit is discharging mine water and the <br /> Operator has not obtained a discharge permit from the Colorado Department of Public Health and Environment. <br /> This is a possible violation at this time pursuant to: C.R.S. 34-32-116(7)(g) for failure to minimize disturbance to <br /> the prevailing hydrologic balance of the affected land and of the surrounding area and to the quality and <br /> quantity of water in surface and groundwater systems; AND/OR Hard Rock Rule 3.1.6(1)(b)for failure to comply <br /> with applicable federal and Colorado water quality laws and regulations, including statewide water quality <br /> standards and site-specific classifications and standards adopted by the Water Quality Control Commission. <br /> CORRECTIVE ACTIONS:This possible violation will require a hearing before the Mined Land Reclamation Board. <br /> The schedule and other details for the MLRB hearing will be provided under a separate document to be sent via <br /> certified mail to the operator. I <br /> CORRECTIVE ACTION DUE DATE: 10/12/11 WLa-L <br /> Page 1 of 7 <br />