co

y F

COLORADO DIVISION OF RECLAMATION MINING AND SAFETY

MINERALS PROGRAM INSPECTION REPORT

om Y

PHONE 303 8663567

The Division of Reclamation Mining and Safety has conducted an inspection of the mining operation noted below This report documents observations concerning compliance with the terms of the permit
and applicable rules and regulations of the Mined Land Reclamation Board
MINE NAME
C JD 5

PROSPECTING ID MINE
M 1977 248

MINERAL INSP DATE

COUNTY

Uranium and vanadit Montrose

INSP TIME
00 15

INSPECTION TYPE

S INSPECTOR
G Russell Means OPERATOR REPRESENTATIVE
Don Coram

Monitoring
OPERATOR

September 21 2011

TYPE OF OPERATION

Gold Eagle Mining Inc

REASON FOR INSPECTION

112d1

Designated Mining Operation

BOND CALCULATION TYPE

None

BOND AMOUNT

Normal IE Program
DATE OF COMPLAINT
NA
WEATHER

00 100
JOINT INSP AGENCY None
S S R
NAT E

POST INSP CONTACTS

None
INSPECT

Clear

October 6 201

SIGNATURErvEp
run 1 1 nn44

GENERAL INSPECTION TOPICS

Division of Kociamation

Mining and Safety

This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each No problems or possible violations were noted during the inspection The mine operation was found to be in full compliance with
Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials

andor for Hard Rock Metal and Designated Mining Operations Any person engaged in any mining operation shall notify the office of any failure or imminent failure as soon as reasonably practicable after such person has knowledge of such condition or of any impoundment embankment or slope that poses a reasonable potential for danger to any persons or
property or to the environment or any environmental protection facility designed to contain or control chemicals or waste which are acid or toxicforming as identified in the permit
AR RECORDS

FN FINANCIAL WARRANTY

RD ROADS

HB HYDROLOGIC BALANCE

BG

BACKFILL

GRADING

EX

EXPLOSIVES

TAILING PW PROCESSING WASTE

SF PROCESSING FACILITIES

TS TOPSOIL

MP GENL MINE

PLAN COMPLIANCE Y

FW

FISH

WILDLIFE

RV REVEGETATION

SM SIGNS AND MARKERS

SP

STORM WATER MGT PLAN

SB COMPLETE

INSP

ES OVERBURDEN DEV WASTE

SC

EROSION SEDIMENTATION

RS RECL PLANCOMP

AT
Y

ACID OR TOXIC MATERIALS

OD OFFSITE DAMAGE
Not applicable to this operation PB

ST STIPULATIONS
Possible violation cited

Inspected and found in compliance N

Not inspected NA

Problem cited PV

Page

1 of 2

PERMIT

M1977 248

S INITIALS GRM INSPECTOR

INSPECTION DATE September 21 2011

OBSERVATIONS

This inspection is part of the normal inspection schedule for Designated Mining Operations by the Colorado Division of Reclamation Mining and Safety Division The CJD 5 Mine is a 112d 1 permitted site located off County Road DD19 in Montrose County Don Coram Gold Eagle s representative accompanied the inspector on site

An Environmental Protection Plan EPP submittal notification has been sent out for this site with specific dates for
compliance Therefore this inspection is only noting current site conditions and immediate problems The underground

was not inspected due to the lack of any recent activity A review of the file notes some key information that can be used in the EPP that was submitted as part of an environmental study with the original permit
The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3 12 The 1 sign is located on the hoist house building within the permit area and clearly visible from the road Permit boundaries were observed as t posts The permit has two distinct areas The east side of DD 19 road has the hoist house shaft ore

bins primary waste piles and fans The west side of DD19 Road has a waste pile located there
The shaft and hoist house are secure The work area around these structures has natural vegetation moving back in Rabbit brush and native grasses were observed At the shaft the ore load out area is clear of any materials No
sedimentation or erosion issues are noted

The primary waste piles are very well vegetated Spiked wheatgrass and Indian rice grass are predominant with rabbit brush well established Density and diversity are equal to or better than the surrounding non disturbed areas The ore

bins located north of the hoist house are clear of any materials No erosion or sedimentation issues were observed Grading in the area contains precipitation to the area The closest fan pad is just east of the hoist house The fan has been removed and the shaft has a temporary cover The upper fan pad was not visited
The west waste pile is stable No erosion or sedimentation issues were observed

No issues or problems are cited at this time A review of the financial warranty will be undertaken when the EPP process is completed Please note that all portions of the permit need to be reviewed and brought up to date as part of the EPP process A review of the file indicates that a new permit boundary map will be required Annual reports have also not included a new map for some time While no changes have occurred a new map should be submitted periodically Responses to this inspection report should be directed to Russ Means at the Division of Reclamation Mining and Safety Grand Junction Field Office 101 South 3rd Street Room 301 Grand Junction Colorado 81501 phone no 970 2411117

Inspection Contact Address

Don Coram

Gold Eagle Mining Inc

O Box 3007 P

Montrose CO 81402

Page

2 of 2