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February 25, 2015 C- 1981 - 018 /Deserado 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 <br />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />Y - Topsoil <br />COMMENTS <br />This was a partial inspection of the Deserado Mine by Zach Trujillo of Colorado Division of Reclamation, Mining <br />and Safety (DRMS) conducted onJanuary 29, 2014. Due to illness, this was a road side inspection and no <br />companry representaitve was present during the inspection. The weather was clear and ground conditions were <br />partially saturated from snow melt with minor snow cover in shaded areas. Temperatures for the day were around <br />fifty degrees fahrenheit. <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 />Equipment laydown area located along the mine entrance road was inspected. A berm confines the equipment and <br />surface runoff from entering the gulch area. The berm was stable and no low spots were encountered. No signs of <br />rills or major erosion were observed. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.032(3) <br />Drainage 4.03.1(4)/4.032(4) <br />Surfacing and Maintenance4.03.1(5) and (6)/4.032(5) and (6) <br />Reclamation 4.03.1(7)/4.032(7): <br />Haul road was stable and well graded. No signs of fugitive dust were observed from truck traffic. <br />SUPPORT FACILITIES - Rule 4.04: <br />Nitrogen injection line was located running parallel to County Road 65 on the east side, north of the haul road <br />intersection. No disturbance associated with pipe construction was found and no issues were observed. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />