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March 10, 2014 C- 1980 - 004 /McClane Canyon Mine ZTT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />N - Processing Waste <br />N - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />R - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the McClane Canyon Mine by Zach Trujillo and Dan Hernandez of Colorado <br />Division of Reclamation, Mining and Safety (DRMS). Jim Riddle of McClane Canyon Mining (MCM) was <br />present at the mien site and accompanied DRMS in the inspection. Weather conditions were clear with the <br />temperature around fifty five degrees fahrenheit and ground conditions weredry. The inspection started with <br />records on March 10, 2014 and ended at the McClane Canyon Mine on March 13, 2013. There was no activity at <br />the mine site at the time of the inspection. The McClane Canyon Mine records were located at the office of J. E. <br />Stover & Associate, Inc. in Grand Junction, Colorado. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All records are kept at the office of J. E. Stover & Associate, Inc. in Grand Junction, Colorado. Please see the <br />Division's Availability of Records checklist at the end of this inspection report for more detailed information. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The majority of the surface disturbance along the facility area of the McClane Canyon Mine is directed to the one <br />sediment pond by a series of ditches. Ditches along the facility area were in good shape with no cutting observed. <br />The lone sediment pond held water below the principle spillway. The principle spillway of the sediment pond has <br />a controlled inlet and was not discharging at the time of the inspection. The remaining area of surface disturbance <br />has surface runoff report to two separate silt fences near the entrance to the mine site. Both silt fences were <br />working as designed and were properly installed. Sediment has built up along the silt fences and may need cleaned <br />in the future. <br />The culvert that runs below the haul road to sediment pond is in need of cleaning. The outlet was partially covered <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 7 <br />