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Inspection Report Page 2 of 2 <br /> (Connell Resources Inc.) <br /> 1. It was noted during the inspection that placer mining is taking place, however at the time of the inspection <br /> the trommel and pit mining had ceased operating and the mine was in the process of winter shut down. <br /> Facilities engaged in the recovery of gold from placer deposits by any method (SIC code 1041) are <br /> specifically required to obtain permit coverage, unless the facility qualifies for a No-Exposure Certification, <br /> or has no potential to discharge stormwater from its industrial activities. <br /> 2. It was noted during the inspection that groundwater and process water from the placer mining activities as <br /> well as stormwater runoff from the placer mining area is directed to the mine pit (See photograph 1). <br /> There were no surface breaches or discharges observed along the perimeter of the pit. As a result, there <br /> was no evidence of a direct surface water discharge from this area. <br /> 3. It was noted during the inspection that Pond 1 and Pond 2 (see photographs 3 and 4) that take on process <br /> water and stormwater from the north east portion of the facility are surrounded by earthen berms. The two <br /> ponds sit at a higher elevation than Pond 3 and Pond 4. Pond 3 and Pond 4 are also surrounded by earthen <br /> berms and are located at a higher elevation than the Middle Fork of the South Platte River. There were no <br /> surface breaches or discharges observed along the perimeter of any of the earthen berms. As a result, there <br /> was no evidence of a direct surface water discharge from these areas. <br /> 4. It was noted during the inspection that Pond 4 has an overflow pipe that takes water not circulated back to <br /> main process building to a series of pre-existing shallow settling ponds on the east side of the facility (see <br /> photograph 5). Due to the vast network and historic nature of the berms no pathway for direct surface <br /> water discharge to the Middle Fork of the South Platte River was observed from this location. A large <br /> portion of the area southeast of the settling ponds has been left undisturbed (see photograph 6). <br /> 5. It was noted during the inspection that gravel processing and sorting was taking place on the northwest <br /> portion of the facility. Waste rock piles and fine slurry piles are stored on the higher elevations of the site <br /> and are spread out to dry. Stormwater runoff from this area flows southwest into an earthen berm prior to <br /> reaching an undisturbed vegetated area that sits adjacent to wetlands and the Middle Fork of the South <br /> Platte River (see photograph 7). The slurry fines as they are spread out and dried are stockpiled for final <br /> reclamation and future grading. According to Jim Murray, Managing Member of High Mountain Mining, the <br /> facility will eventaully be developed for residential housing. The potential future need for Colorado <br /> Discharge Permit for Stomrwater Discharges Associated with Construction Activity was discussed. There was <br /> no evidence of a direct surface water discharge from these areas. <br />