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PERMIT #: M -1977 -410 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: January 17, 2013 <br />$16,100.00. The Operator has one calendar year from the date of approval to post the increased financial <br />warranty amount; the revision is not final until the Division accepts the financial and performance warranties. <br />To date, the Division has not received the additional financial warranty or performance warranty. On January <br />15, 2013, the Division received the 2012 Annual Map. The Annual Map was accompanied by a brief narrative <br />which stated the Operator had commenced development of the new decline portal. During the inspection, the <br />Division confirmed that the Operator had started development of the decline portal. The decline portal is <br />located approximately 40 ft. south of the existing Cross Mine portal. The Operator created a cut in the hillside <br />that measured approximately 30'W x 45'H; the excavation continued until the bedrock interface was exposed. <br />According to the Operator, approximately 250 tons of the excavated material was stockpiled south of the <br />excavation in a new waste rock stockpile and another 500 tons were hauled to the adjacent Caribou Mine <br />yard. The material which was hauled to the Caribou Mine was placed on an existing waste rock stockpile. As <br />previously noted, the Division has not received the financial or performance warranties associated with the <br />approval of AM -01. The excavation for the decline portal and the new waste rock stockpile are located within <br />the currently approved 2 acre permit boundary. However, the material hauled to the Caribou Mine is located <br />outside of currently approved 2 acre permit boundary, but within the amended permit boundary. Therefore, <br />the Division has reason to believe that the Operator is in violation of the following: <br />1) C.R.S. 34 -32- 112(8) and C.R.S. 34 -32- 117(1) for failing to submit supplemental performance and financial <br />warranties for additional acreage added through a reclamation permit amendment, prior to affecting land <br />associated with said amendment. <br />2) C.R.S. 34- 32- 116(7)(h) for failure to protect areas outside of the affected land from slides or damage <br />occurring during the mining operation. <br />The possible violation will be scheduled for the March 13 -14, 2013 Mined Land Reclamation Board Hearing. <br />Notice of such hearing will be sent under separate cover. <br />The Division will, as a result of the issues identified during this inspection, schedule the Notice of TC for the <br />March 13 -14, 2013 Mined Land Reclamation Board Hearing. At the hearing, the Board may take the following <br />actions: <br />a) acceptance of the Notice of TC. <br />b) acceptance of the Notice of TC with modifications and other necessary activities as established by the <br />Board. <br />c) determination that the mining operation is not in a state of TC. <br />d) continuance of the matter for another month or more to allow the Operator to revise the Notice of TC <br />and /or to allow the Office staff to conduct a site inspection or otherwise review the matter as necessary. <br />This concluded the inspection. <br />Page 3 of 5 <br />