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February 25, 2015 <br />X- 2011 - 232- 01/New Elk Mine 2011 Exploration Program LDS <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 />N - Backfill & Grading <br />N - Fish & Wildlife <br />N - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />N - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Slides and Other Damage <br />N - Signs and Markers <br />N - Topsoil <br />COMMENTS <br />The inspection was hampered by weather conditions. Several inches of snow on the ground meant that <br />access to some of the sites was difficult and that ground cover at the borehole sites could not be assessed. <br />RECLAMATION SUCCESS - Rule 2.02(g) and 4212(2): <br />Thirty two borehole sites are covered by this NOL It is not clear that all of them were actually <br />drilled. Table 1 (below) summarizes the sites. <br />It was not entirely clear during the inspection which of the proposed 32 borehole sites actually <br />had boreholes drilled on them. Following the inspection John Terry reported that he had a record that NE- <br />04-12, NE- 07 -12, NE -14 -12 and NE -17 -12 had been drilled (this information was added to table 1). Note <br />however that NE -17 -12 is not covered by this exploration permit. <br />Based on this inspection, the Division will be required to conduct a follow -up inspection as <br />weather permits to ensure proper abandonment of the drilled boreholes and reclamation of the drill sites. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 9 <br />