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March 12, 2015 C- 1981 - 018 /Deserado Mine ZTT <br />runoff from the secondary ditch reports to the sediment Pond DP -1. <br />Ponds PP -1 and PP -2 located in the facility bench pads both held water with no discharge. No issues were <br />observed. <br />Ditches located within the facility area were clear of any mine related debris and construction material. No signs <br />of cutting or deposition within the ditches were observed. All culverts inspected in the facility area were also <br />within compliance. <br />Ponds SS -1, SS -2, RR -1 and RRS -1 located near the slot storage and rail road loadout were all dry. Embankments <br />were stable with no signs of slumping or erosion. Embankments were sufficiently vegetated. Spillways were clear <br />and no issues were observed. <br />The B -seam dewatering pond system was not actively pumping at the time of the inspection. Scott Wanstedt stated <br />pumping last occurred the Tuesday prior to the inspection. Water was pumped up to the final pond, The Last <br />Chance Pond. The Last Chance Pond held minimal water in comparison to its capacity. To the date of this <br />inspection, no water has been discharged from the B -seam dewatering pond system. All embankments were stable <br />with no issues. Rip rap is placed at all transfer points in between all ponds. No cutting was observed at each <br />transfer point. Vegetation is sufficient in along the embankments of the older sections of the pond system. During <br />the later months of 2014, Deserado finalized construction on the three lower ponds to increase capacity. The area <br />was reseeded but has not yet experienced growth due to the winter season. The perimeter area of disturbance <br />related to the ponds recent construction has all been graded so that surface runoff is directed to 3 rock checks. In <br />this area, no erosion or cutting was observed. Rock checks were stable and no signs of sediment deposition were <br />encountered around the checks. <br />Rock dust tank SAE located near the B -seam Dewatering Ponds was inspected for sediment control. Gravel was <br />present on the pad but due to recent construction /maintenance on the pad, it appears the gravel has been <br />compacted into the ground or pushed from the area by heavy traffic. Additional sediment control was found at the <br />low end of the pad in the form of a rock check. The rock check was stable and some erosion was observed leading <br />into the rock check. The erosion was minimal and normal for the seasonal change. There appeared to be low spot <br />in the grading of the pad just north of the rock check. Visual inspection of the area noted that all surface runoff <br />appears to still be directed to the rock check however, this area should be regraded to ensure runoff is to be <br />directed to the check dam. <br />The new nitrogen injection plant is nearing finalized construction at the time of the inspection. Berms have been <br />established down gradient of the pad. Final reshaping of the pad is still to occur and gravel will be added as <br />additional sediment control. <br />Refuse pile Ponds RP -2/3, RP4 and RP -5 were all inspected. All three ponds held minimal water and no discharge <br />was occurring. Embankments were stable and vegetated. All spillways related with each pond are in compliance. <br />SAES that were inspected include, Explosives Storage, Haul Road Blisters, Radio Tower, Rock Dust Tanks, 13- <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 7 <br />