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DETAILED SITE INSPECTION OBSERVATIONS <br />GENERAL COMPLIANCE <br />The site has good housekeeping and appears to be in compliance. <br />The disturbed BLM portion of the mine (phase 2) is approximately 7 -acres <br />currently. Dev'p from the south is still in progress, in order to mitigate a SW <br />trending trough that will need to be utilized when pushing rock down from <br />SITE DEVELOPMENT <br />the top. One more slice is needed prior to moving to the top and mining in <br />Ln <br />accordance with initially proposed direction and protocol. This last slice is <br />a <br />in the drilling phase right now. <br />i5 <br />N <br />Z <br />g <br />The BLM portion of the operation is in the production stages, which began <br />CL <br />OPERATIONAL PHASE <br />in May 2014. <br />Z <br />0 <br />Q <br />RECLAMATION STATUS <br />Reclamation has not begun on the site. <br />(TOPSOIL, ROADS, ETC.) <br />g <br />Drainage pipes were previously installed that would prevent the road from <br />W <br />washing out and are designed to slow down the water as it runs down the <br />0 <br />EROSION/ SEDIMENTATION <br />steep slopes into the mine below. Additional work is pending to develop <br />LU <br />Z_ <br />the stormwater drainage from the higher elevations into the mine floor. <br />Blasting is occurring regularly on the BLM parcel. ANFO is stored onsite, in <br />EXPLOSIVES <br />accordance with ATF permits. <br />No issues with safety were noted. Company just hired a Safety /Health <br />SAFETY <br />position. , <br />ENGINEERING/ GEOLOGIC & STABILITY <br />There are no concerns with engineering or geologic stability at this time. <br />CONDITIONS <br />OTHER LOCAL/ STATE/ FEDERAL REQ. & <br />MSHA was the only agency onsite conducting an inspection since BLM's <br />COMPLIANCE <br />last visit. <br />Purpose of the inspection: <br />— Coordinate the need for survey points (both control and for <br />photogrammetry efforts). BLM's surveyor (Jeff) will call Randy in <br />the next couple of days. <br />— The 3D model created by Agg Source is still not synced with BLM's <br />flight data. The survey effort mentioned above should help rectify <br />this issue. <br />— Observe new belt scales <br />OTHER OBSERVATIONS /NOTES <br />— Took pits <br />— Randy will provide a diagram depicting all belts and plants <br />w /scales <br />— All scales operating <br />— These scales undergo bi- annual calibration and daily <br />inspections <br />— Not required to be certified through USDA <br />— Tonnage reporting "system" we agreed upon is working well from <br />both sides. <br />