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04_ o_co COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />ye o <br />PHONE: (303) 866 -3567 <br />IF876 <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: <br />MINE/PROSPECTING ID#: <br />MINERAL: <br />COUNTY: <br />Cash & Who Do Mines <br />M- 1983 -141 <br />Gold and silver <br />Boulder <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Michael A. Cunningham <br />December 4, 2012 <br />11:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Gold Hill Mines, Inc. <br />Mark Steen, Gordon Sweeney <br />110(2) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I&E Program <br />None <br />$216,200.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />U.S.BLM <br />None <br />WEATHER: <br />CT R'S SIGNATURE: <br />SIGNATURE DATE: <br />Cloud <br />January 8, 2013 <br />GENERAL INSPECTION TOPICS <br />This list identities the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />RECORDS---------------------------- - - - - -- Y (FN) FINANCIAL WARRANTY-- - - - - -- Y (RD) ROADS------------ - - - - -- N <br />HYDROLOGIC BALANCE------- - - - - -- Y (BG) BACKFILL & GRADING---- - - - - -- Y (EX) EXPLOSIVES--- - - - - -- N <br />PROCESSING WASTE/TAILING - - -- N (SF) PROCESSING FACILITIES- -- - - -- N (TS) TOPSOIL---------- - --- -- N <br />GENL MINE PLAN COMPLIANCE- N (FW) FISH & WILDLIFE------- -- ---- Y (RV) REVEGETATION - - -- N <br />SIGNS AND MARKERS----------- - - - - -- Y (SP) STORM WATER MGT PLAN - - -- N (SB) COMPLETE INSP - - -- N <br />OVERBURDEN/DEV. WASTE--- - - - - -- N (SC) EROSION /SEDIMENTATION - -- N (RS) RECL PLAN /COMP -- Y <br />T) ACID OR TOXIC MATERIALS- - - - - -- Y (OD) OFF -SITE DAMAGE---------- - - - - -Y (ST) STIPULATIONS- - - - - -- Y <br />= Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 4 <br />