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REASON FOR INSPECTION: <br />Normal I &E Program <br />BOND CALCULATION TYPE: <br />None <br />BOND AMOUNT: <br />$175,900.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />Colorado Health Department <br />JOINT INSP. AGENCY: <br />Local Government <br />WEATHER: <br />Clear <br />IN E TO SIG TURE: <br />' <br />SIGNATURE DATE: <br />September 16, 2011 <br />MINE NAME: <br />Cash & Who Do Mines <br />MINE/PROSPECTING ID #: <br />M- 1983 -141 <br />MINERAL: <br />Gold and silver <br />COUNTY: <br />Boulder <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Michael A. Cunningham <br />INSP. DATE: <br />August 24, 2011 <br />INSP. TIME: <br />10:30 <br />OPERATOR: <br />AGC Resources LLC <br />OPERATOR REPRESENTATIVE: <br />NA <br />TYPE OF OPERATION: <br />110(2) - Hard Rock Limited Impact <br />f cot COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />y �, MINERALS PROGRAM INSPECTION REPORT <br />* .4 cove* <br />PHONE: (303) 866 -3567 <br />/876 <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 />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. <br />CORRECTIVE ACTION DUE DATE: 10/12/11 /Y� MK Al <br />I <br />Page 1 of 7 <br />