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PERMIT #: M- 1980 -244 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: June 19, 2013 <br />OBSERVATIONS <br />The Division conducted a monitoring inspection of the site on June 19, 2013. Mr. Timm Comer (CC &V) was present for <br />a pre- inspection meeting and for the inspection. Mr. Tony Waldron and Ms. T.C. Wait along with this inspector <br />represented the Division for this inspection. The primary focus of this inspection was to observe construction activities <br />and discuss groundwater monitoring for new facilities in Squaw Gulch (new valley leach facility) and Grassy Valley (east <br />cresson overburden storage area). <br />Pre - Inspection Overview: <br />Mr. Comer provided a status update on the following activities: <br />• The new East Cresson Overburden Storage Area ( ECOSA) monitoring wells may be in. Mr. Comer will get <br />locations to DBMS. <br />• The ECOSA underdrains (first and second) are in. the third one has not started yet. <br />• Mr. Comer indicated the mine will have the new Squaw Gluch VLF monitoring wells in the coming year's budget <br />and installation should be complete in the first or second quarter of 2014. <br />• There is no change to the Arequa Gulch VLF liner slough. <br />• The new mill platform construction is complete. Some concrete pours for the new mill are anticipated to begin in <br />the next few weeks. Construction of the high grade mill facility itself is expected to begin in August of 2014. <br />Mr. Larry Newcomer provided the DBMS an overview of the new high grade mill process. One significant change in the <br />procees of note is that cyanide will be applied at a rate of 2 lbs /ton of ore, rather thant he current rate of 0.2 lbs /ton. <br />Inspection: <br />The Division observed operations in the Wild Horse Extension (WHEX) pit (see Photos 1 and 2) and the Main <br />Cresson Pit (see Photos 3 and 4). Grassy Valley (see Photos 5 and 6) was visited to discuss monitoring well <br />locations. <br />Clearing, grubbing, and topsoil salvage are continuing in Squaw Gulch (see Photo 7). The Division visited the <br />new office building on the newly completed mill platform (see Photo 8). <br />The Division did not visit or record readings from the high and low volume solution collection system <br />transducers. <br />Page 2 of 7 <br />