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August 11, 2014 C- 1981- 012/New Elk Mine LDS <br />Although the wash plant was operating, NECC had avoided using pond 6. The black pipes had been <br />plumbed into the plant, but were not submerged in water in the pond. Potable water from the tanks on the hill had <br />been used to allow the plant to run and that water was simply re- circulating within the plant. NECC had no plans <br />to discharge any water from the plant, or to make any use of pond 6, for the time being. To reiterate: pond 6 <br />must be lined before it is used to hold process water. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3); Drainage 4.03.1(4)/4.03.2(4); Surfacing and Maintenance 4.03.1(5) and <br />(6)/4.03.2(5) and (6); Reclamation 4.03.1(7)/4.03.2(7): <br />All the roads around the site were in good condition. <br />TR 70 includes the application to upgrade the RDA access road to a haul road. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />The grassland and upland wildlife habitat vegetation reference areas were inspected. They were not <br />marked in the field. <br />Seasonal weed spraying had not yet taken place. <br />SLIDES and DAMAGE - Rule 4.12: <br />The gully from the conveyor transfer point on the steep slope above pond 8 had not been fully repaired, <br />but appeared to have stabilised and had not grown larger despite the operation of the belt. <br />OFFSITE SUPPORT FACILIITES - Rule 4.04,4.28: <br />The ground water monitoring points were inspected, with no problems noted. <br />The Jansen loadout was inspected. The site was overgrown with weeds and should be sprayed. The <br />damage caused by vandals /thieves several months ago had not been repaired. There was no current plan to replace <br />the power cables until such time as the loadout might be needed again. The site was secure. <br />DOCUMENTS RECEIVED <br />N/A <br />OTHER (SPECIFY) <br />N/A <br />ENFORCEMENT ACTIONS /COMPLIANCE <br />No enforcement actions were initiated as a result of this inspection, nor are any pending. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 4 of 14 <br />