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woF," "Co COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />* 1876 <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 />Phil Sheridan Lode <br />M- 1988 -081 <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 />February 24, 2015 <br />13:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Harry Covey <br />Harry Covey, Dennis Covey <br />I I0(l) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I &E Program <br />Complete Bond <br />$6,100.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />I S T 'S S GNATURE: <br />SIGNATURE DATE: <br />Clear <br />April 2, 2015 <br />r <br />The following inspection topics were identified as havinp, Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Availability Of Records <br />PROBLEM /POSSIBLE VIOLATION: Problem: The Division does not have a copy of the Operator's legal right to <br />enter the property to conduct mining and reclamation operations as required by Hard Rock Rule 6.3.7. <br />CORRECTIVE ACTIONS: The Operator shall provide the Division with a description of the basis for legal right of <br />entry to the site to conduct mining and reclamation on or before the corrective action date. This may be a copy <br />of access lease, deed, abstract of title, or a current tax receipt. <br />CORRECTIVE ACTION DUE DATE: 5/01/15 <br />INSPECTION TOPIC: Gen. Compliance With Mine Plan <br />PROBLEM /POSSIBLE VIOLATION: Problem: Rule 1.13.5 states, if an Operator temporarily ceases production of <br />the mining operation for one hundred eighty (180) days or more, the Operator must file a Notice of Temporary <br />Cessation in writing to the Office. <br />CORRECTIVE ACTIONS: The Operator shall file for Temporary Cessation on or before the corrective action date. <br />CORRECTIVE ACTION DUE DATE: 5/01/15 <br />Page 1 of 5 <br />