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PERMIT #: M -1980 -244 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: September 4, 2013 <br />OBSERVATIONS <br />The Division conducted a monitoring inspection of the site on September 4, 2013. Mr. Timm Comer (CC &V) was <br />present for a pre- inspection meeting and for the inspection. The focus of this inspection was to observe construction <br />activities and record water levels in the Arequa Gulch VLF. <br />Pre - Inspection Overview: <br />Mr. Comer provided a status update on the following activities: <br />• The International Cyanide Management Code review was in process, including the emergency response plan. <br />This is reviewed every 3 years by an independent auditor consisting of technical experts meeting International <br />Cyanide Management Institute (ICMI) requirements. <br />• The majority of mineral extraction has moved to the Wild Horse Extension (WHEX) pit. <br />• Construction of the new permanent BMPs has started in Grassy Valley. <br />• The new Squaw Gluch VLF monitoring wells will include shallow alluvium wells in Grassy Valley. Installation <br />should be complete in the first quarter of 2014. <br />• Arequa Gulch VLF liner slough: CC &V will remove the damaged geomembrane liner; inspect the underlying <br />clay liner and repair as necessary; replace the damaged geomembrane liner and replace the drain cover fill (DCF). <br />• Construction activities on the new mill platform has shifted to the facilities. Footings for the buildings were being <br />poured. <br />• Mr. Comer also noted the new water stand on Dump 4 was operational and paving operations for the re- aligned <br />Hwy 67 in Squaw Gulch was expected to begin before the end of the first week of September 2013. <br />Inspection: <br />Operations in the WHEX pit were observed (see Photo 1). Topsoil was being stripped in upper Grassy Valley <br />(see Photo 2). DCF material was being processed and stockpiled by Ames Construction for the Squaw Gulch <br />VLF (see Photos 3 and 4). A deer herd was observed between the crusher area and the Main Cresson Pit (see <br />Photo 5). <br />Clearing, grubbing, and topsoil salvage are continuing in Squaw Gulch (see Photo 6). Photo 7 provides a view <br />of the nearly completed Hwy 67 re- alignment that also functions as the toe berm for the new VLF. The <br />Division observed structure footings being constructed on the newly completed mill platform (see Photo 8). <br />The inspection continued as the Division visited each of the high and low solution collection system transducers <br />and recorded water level values. The recording sheet is included as Attachment A, and the values are <br />summarized below in the Transducer Readings. <br />The Arequa Gulch underdrains were inspected. The South Underdrain, North Underdrain and the AG /Spring <br />were dry. The flowmeter installed for the B63 pumpback line indicated a flow rate of 0.66 gpm. The A35 <br />pumpback line was dry. No flow was observed in the Arequa Gulch flume (AG 1.5- 001A). <br />Transducer Readings: <br />Phase I High Volume Solution Collection (readings in ft) <br />Pump #299 / XDCR #xx <br />57.7 <br />Pump #301 / XDCR #01 <br />26.1 <br />Pump #300 / XDCR #00 <br />37.5 <br />Pump #302 / XDCR #02 <br />40.8 <br />Pump #303 / XDCR <br />#03 <br />43.3 <br />Page 2 of 8 <br />