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September 16, 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 />R - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />R - Slides and Other Damage <br />R - 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 Clayton Wein of Colorado <br />Division of Reclamation, Mining and Safety (DRMS). Records were checked on September 16, 2014 followed up <br />with the ground inspection on September 18, 2014. Jim Riddle of CAM - Colorado, LLC was present at the mine <br />site and accompanied DRMS in the ground inspection. Weather conditions were clear and the temperature around <br />eighty degrees fahrenheit with ground conditions dry. On September 9, 2014, a large precipitation event occured <br />in the area encompassing the McClane Canyon Mine. The amount of precipitation was measured on site with a <br />rain gauge and measured approximately 2 inches of rain in a 24 hour time period. Additional crews were hired and <br />on site to help with the clean up of the mine site at the time of the inspections. An aerial inspection of the McClane <br />Canyone Mine was also conducted by Harry Ranney of DRMS on September 25, 2014. <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, 4.05.3; 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 />As noted earlier, approximately 2 inches of rain was measured on site in a 24 hour period. According to NOAA <br />precipitation frequency estimates, 2 inches exceeds the 25 -year 24 -hour event. Security cameras on site captured <br />the flooding near the portal area. Massive amount of water, rock and sediment came from above the mine facility <br />area which clogged most on site culverts, sumps and ditches. Large rock falls also occurred and contributed to <br />blockage. <br />Upland clean water diversion culverts A and D collect clean water from contributing drainages above the portal <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 9 <br />