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PERMIT #: M- 2006 -031 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 7, 2013 <br />follow up inspection to determine if the corrective actions have been complied with. <br />The approval of the Reclamation Permit for the Steel Rose I site was stipulated. As part of the stipulated <br />approval the Operator is required, on an annual basis, to provide Acid Base Accounting and paste pH test <br />results signed by a professional chemist confirming the results and that the tests were conducted or <br />supervised by that professional chemist. In the annual reporting process the Operator is also required to <br />describe, in detail, the methods of the Acid Base Accounting and paste pH tests (including the quantity of the <br />air -dried material tested in grams, the quantity of DI water used to get the 1:1 ratio, and the elapsed time <br />before the pH was measured) employed. The Operator has not provided this information since 2009. This has <br />been cited as a problem and will require corrective action by the Operator; please see the first page of this <br />report for additional information. The Division did not observe any evidence that the exposed ore was <br />generating acid. <br />The Divisions hold a financial warranty in the amount of $5,065 and the US Forest Service holds a financial <br />warranty in the amount of $3,252, for a total financial warranty of $8,317. A complete bond calculation was <br />performed as part of the Division's inspection and the financial warranty amount of $8,317 was found to be <br />adequate to complete reclamation at the site. <br />This concluded the inspection. <br />Page 3 of 5 <br />