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Background <br />OBSERVATIONS <br />PERMIT #: M- 1981 -185 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: February 16, 2012 <br />This inspection was conducted by the Division of Reclamation, Mining and Safety (Division), in <br />response to citizen complaints received, via email, from Phil Vigil, Jason Aweida, and Lisa <br />Giovanniello (attached). Mr. Vigil expressed concerns that the Operator was excavating into <br />tailings located in the Idaho affected area. Mr. Aweida was concerned that the Operator was <br />constructing a tailings pond, or a drill pad in the Idaho affected area. Mrs. Giovanniello was <br />concerned that the Operator was rearranging roads at the site, particularly at the Idaho affected <br />area. The Operator provided a response to the Division, via email, in an attempt to address some <br />of these concerns (attached). <br />Gary Gibbons, representing the Operator, was present during this inspection. Photographs are <br />included with this report in order to illustrate some of the conditions observed during this <br />inspection. <br />The May Day Idaho Mine complex is located approximately 12 miles northwest of Durango and <br />accessed from CR 124. The site is a 112d -1 operation that includes a total of 274.7 permitted <br />acres. The Division currently holds a financial warranty amount of $204,562.00 for this site. <br />On December 12, 2011 the Mined Land Reclamation Board (Board) issued a partial approval of <br />a conversion application (CN1), submitted by the Operator, in order to allow the Operator to <br />conduct geotechnical work and gather information needed for future submittals of work plans <br />addressing stabilization and reclamation of the new access road, the Chief Portal area, Little <br />Deadwood Gulch at the Chief Portal and May Day 2 areas, May Day 1 area, for collecting <br />adequate information for determination of ambient surface and groundwater quality, and for <br />design of Environmental Protection Facilities. Approval of CNI did not allow for any mining or <br />milling activity to take place at the site. <br />New Access Road <br />During this inspection, it appeared that the new access road was not being utilized for vehicular <br />access to the site. The new access road had not been plowed and there was significant snow <br />cover over the road. Geotechnical sample gathering had been completed in this area prior to this <br />inspection. Survey lathe marked locations along the new access road where samples had been <br />collected. <br />Idaho Area <br />The access road to this area had been plowed. Some geotechnical drilling activity had occurred <br />around the location for the proposed augmentation pond. Survey lathe marked locations of the <br />boreholes. Some excavation had taken place in this area in order to allow access for the drill rig. <br />One borehole was located on the old road located on the east side of the proposed augmentation <br />pond. Other boreholes were located along an access constructed on the west side of the proposed <br />pond. <br />Page 2 of 10 <br />