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April 21, 2014 C- 1996 - 084 /Lorencito Canyon Mine LDS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />NA -Air Resource Protection <br />R -Availability of Records <br />NA - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />NA - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N -Other <br />NA - Processing Waste <br />Y -Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />NA - Support Facilities On -site <br />Y -Signs and Markers <br />Y - Support Facilities Not On -site <br />Y - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />This was a complete inspection by Leigh Simmons of Colorado Division for Reclamation, Mining and <br />Safety, (the Division). The weather was fine and dry. There had been rain and snow in the preceding week, <br />although much less than at the New Elk mine (3" of snow compared to 12" at New Elk, for example). Several <br />permitting actions are in progress, these are detailed under the heading GENERAL MINE PLAN COMPLIANCE. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The records were available in the Technical Services building at the New Elk mine. Detailed comments <br />are made at the end of this report. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />Fills 7, 8 and 9 were inspected. They each appeared stable with good vegetative cover. The fills have <br />benefited greatly from regular maintenance which has meant that erosion of the sloped sections has been kept to a <br />minimum. Mr Masarotti had already identified several areas on each of the fills where he plans to remove <br />accumulated sediment to ensure that water continues to flow to the down- drains rather than across the face of the <br />fill. The Division strongly supports this action. <br />Erosion had begun to cut the fill material beside a section of the westerly down -drain on fill 8. The erosion <br />should be repaired at the same time that the terraces are cleaned. <br />FISH and WILDLIFE — Rule 4.18: <br />The Lorencito Canyon mine continues to show that it is a valuable habitat for a variety of wildlife. Deer <br />and Elk are very common across the site, particularly around the sediment ponds and are observed on virtually <br />every inspection. Additionally on this inspection we saw circling buzzards, a nesting goose and small mammals <br />among the rock piles. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 17 <br />