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OBSERVATIONS <br />PERMIT #: M- 2008 -012 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: November 1, 2011 <br />This inspection was conducted as part of the normal monitoring program of the Colorado Division of <br />Reclamation, Mining, and Safety (Division) for permitted sites. The Last Chance Mine is 112d -1 uranium mine <br />located on Davis Mesa along the southern rim of Paradox Canyon. The mine has an approved environmental <br />protection plan (epp) on file. The Division inspector, Russ Means, was accompanied Nuvemco representative <br />Tom Cavanaugh. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule <br />3.1.12. The sign is located on a tree at the access point. Mr. Cavanaugh noted a new sign was being <br />constructed. The sign must note the permit number not the NOI number presently displayed. At this time the <br />sign is not listed as a problem since a new one is in process. However, if not corrected by next the next <br />inspection it may be noted as a problem. Permit boundaries are marked by t -posts and other geographical <br />features that clearly marked the affected areas. <br />The underground mine has been inactive since 2010. Nuvemco plans on doing some drilling within the permit <br />area to better define the ore body. A notice of the activity was received by the Division. The portal is secured <br />by a steel gate. The only issue of concern is the closure allows a gap at the top that a person or animal might <br />be able to gain access through. If the portal was undisturbed for a time bats in particular could occupy the <br />entrance and create a wildlife protection issue. The operator should take measures to ensure the gap is <br />secured from man and critter. <br />The EPP was part of the approved permit application in 2010. The inspector looked at the on -site storm -water <br />control measures. These controls are part of the internal mine plans approved by the Division and do not <br />reflect other measures required by the Colorado Department of Public Health and Environment's (CDPHE) <br />issued stormwater permit. Those requirements are regulated by CDPHE. <br />Internal stormwater controls primarily grading are currently channeling water towards the portal area. No <br />erosion or sedimentation issues were observed at this time. However the stormwater controls noted in the <br />EPP have not been constructed as approved. The engineered retention basins and lined outflows identified in <br />the plans (Please refer to Exhibit T -1) are not constructed. Because these structures are considered part of the <br />environmental protection facilities they need to be constructed regardless of mine activity status to prevent <br />sedimentation excursions off site. Weather may prevent the immediate construction of the retention basins <br />but shall be constructed as soon as possible and no later than spring 2012. This is noted as a problem at this <br />time under general mine plan compliance. A corrective action and correction date is noted at the end of this <br />report. <br />Topsoil is limited and has been stockpiled at the edge of the waste rock dump area. Vegetation has had <br />limited success but is preventing erosion. Some juniper and cedar snag has been piled up at the edge of the <br />disturbance that can be used in reclamation or as erosion control as needed. <br />The waste piles are level. No erosion or sedimentation issues were observed in this area. The ore stockpile <br />area, which has a natural rock underlayment as a pad is clear of any ore. <br />Page 2 of 3 <br />