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November 18, 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 Y - Roads <br />R - Availability of Records N - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On -site <br />R - Hydrologic Balance R - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste R - Topsoil <br />COMMENTS <br />This was a complete inspection of the McClane Canyon Mine by Zach Trujillo of Colorado Division of <br />Reclamation, Mining and Safety (DRMS). Records were checked on November 18, 2014 followed up with the <br />ground inspection on November 19, 2014. Jim Riddle of CAM - Colorado, LLC was present at the mine site and <br />accompanied DRMS in the ground inspection. Weather conditions were clear and the temperature around fifty <br />degrees fahrenheit with ground conditions dry. <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 />The sediment pond has been cleaned approximately to the approved capacity and has had all sediment removed <br />that occurred from the September 2014 precipitation event. The emergency spillway has been reestablished and its <br />associated silt fence has been restored. <br />Additional sediment was currently being removed from the upland diversion drop culverts located near the portal. <br />The narrow sections of the canyon are still filled with sediment but cannot be reached by equipment. The mine has <br />removed additional dirt below the culverts to act as a sump to collect sediment over time that is out of reach. No <br />issues were observed. <br />Majority of debris blocking of ditches and culverts has been removed or cleared. Mangled wire remains in certain <br />sections of the haul road ditch and needs to be removed into an approved storage area. Additional debris was <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 6 <br />