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OBSERVATIONS <br />PERMIT #: M- 1977 -451 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: September 14, 2011 <br />This inspection is part of the normal inspection schedule for Designated Mining Operations by the Colorado Division of <br />Reclamation, Mining, and Safety (Division). The SR -11, also known as the Ike No.1 Mine is a 112d -1 permit, located <br />southwest of Slick Rock in Western Montrose County. Glen Williams, Cotter's representative, accompanied the <br />inspector on site. <br />An Environmental Protection Plan submittal notification has been sent out for this site with specific dates for <br />compliance. Therefore this inspection is only noting current site conditions and immediate problems. The underground <br />was not visited due to any recent activity. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The <br />sign is located on the gate at the entrance to the site. Permit boundaries were observed as t -posts with the affected <br />area marked by an earthen berm. <br />The portal is secured by a locked steel gate attached to steel sets. The only structure on site is an office / mine dry <br />trailer. No mining equipment is located on the surface currently. <br />Mining activity at the site is documented as occurring in 2005. That is when the main drift development was initiated. <br />No uranium ore was encountered during that period. Mr. Williams estimated that there was still a 1000 feet or more <br />development drift to be constructed prior to any ore body interception. <br />The surface disturbance is approximately 5 acres. The main waste dump is being used to develop a working / staging <br />area for the mine. Slopes are 2:1 or natural angle of repose. The inspector observed some minor riling of the waste <br />slopes. However, sedimentation from this area is being collected in the stripped areas just below. Stormwater from this <br />area and the disturbance footprint in general is collected and directed to a sedimentation pond in the southeast portion <br />of the permit area. Based on the wet season, observations note the system is collecting the on -site precipitation and <br />sedimentation and none is being allowed to leave. Stormwater run -on has been deflected by an upgradient berm and <br />ditch and is not impacted the disturbed areas. <br />The topsoil pile is vegetated to prevent erosional losses. A previous problem with noxious weeds has been addressed. <br />Dead knapweed was observed in the area. One viable bush was observed. Mr. Williams stated that spraying would be <br />occurring soon and the one plant would be addressed. <br />Natural volunteer vegetation is coming in. Sagebrush, rabbit brush, and some four - winged saltbush were observed. The <br />operator has spread some grass seed. Spiked wheatgrass, Indian rice grass and others were noted to be doing very well <br />along the stormwater collection ditch in particular. <br />No issues or problems are cited at this time. A review of the financial warranty will be undertaken when the EPP process <br />is completed. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970 - 241 -1117. <br />Glenn Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, CO 81424 <br />Page 2 of 2 <br />