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September 17, 2014 C- 1981 - 018 /Deserado Mine ZTT <br />have built up midway along the ditch causing water to pond within the ditch. <br />Ponds RR -1, RRS -1, SS -1 and SS -2 were dry at time of the inspection. No issues were observed and ponds remain <br />stable. <br />B -seam dewatering pond system was inspected. Pumping was not occurring during the inspection. Water was last <br />pumped the Tuesday prior to the inspection. Water filled each of the 6 initial cells and had reached up to the 7th <br />section of the artificial wetlands section. The first pond in the system is in need of being cleaned and is planned for <br />this coming fall. The Last Chance Pond was dry. To the date of this inspection, no water has been discharged from <br />the B -seam dewatering pond system. <br />The newly built rock dust tank located near the B -Seam dewatering pond system is in need of erosion control. <br />Currently, this SAE is approved for a gravel pad. <br />Refuse ponds RP -2/3, 4 and 5 were inspected. Ponds RP -5 was dry. RP -2/3 and 4 held minimal water. No stability <br />or erosion issues were observed. Spillways were stable and clear of any debris. <br />Additional rip rap within ditch. <br />GENERAL MINE PLAN COMPLIANCE: <br />B -seam dewatering pond. <br />Construction on the newly approved nitrogen plant has begun. Grading and slope gradient for the pad was being <br />constructed at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 7 <br />