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PERMIT #: M -1980 -244 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: March 11, 2015 <br />Meeting IV: The Division met with Erik Munroe (CC &V Engineering /Geology Dept.) to discuss the scope of the <br />slope instability management in the south part of the WHEX presented by CC &V at the February 2015 Society <br />for Mining, Metallurgy, and Exploration (SME) conference in Denver. Mr. Erik Munroe (CC &V) explained the <br />slide area is partially in the old Wildhorse Pit backfill and is confined on the east by Precambrian material. The <br />slide itself is a back break along the gneiss foliation. The area is small and appears to be a regressive (self - <br />buttressing) failure. CC &V has revised the mine plan to flatten the slope and continues to monitor the slide. <br />The Division agrees with the mine that the current impact of the slide is minimal. <br />Meeting V (Post - Inspection): Chris Hanks (CC &V), Mr. Tidquist and Mr. Myers met with Mr. Cazier to discuss <br />Grassy Valley surface water monitoring data (flume and quality) and the Division's intent to begin monitoring <br />mine facilities such as the mill, ADR and maintenance shops. <br />Grassy Valley — The expansion of the WHEX pit has removed a portion of sediment pond EMP -19, which is <br />immediately upgradient of Grassy Valley monitoring station GV -01. As very little contributing watershed <br />remains above GV -01, and it will eventually be taken out as the WHEX pit expands, the mine desires to salvage <br />the flume. CC &V's request to remove this most upgradient Grassy Valley surface water monitoring station <br />prompted the Division to review the impact of removing the station. Although Amendment 10 states CC &V <br />will provide the Division with flow and water quality data from the Grassy Valley monitoring stations, the <br />Division has not been provided this information. However, the Division has little jurisdiction over water quality <br />and quantity in this case. The situation does need to be rectified. The Division is considering what actions <br />need to be taken. <br />Future Facilities Inspections — Mr. Hanks stated he or Mr. Tidquist could accompany the Division on all the <br />facility inspections, but other mine personnel might be better suited to answer specific questions during <br />inspections of process system related facilities such as the ADR, mill and PSE, and that a 24 to 48 -hour notice <br />for inspections of these facilities would be helpful in making sure the appropriate personnel would be <br />available for inspections. <br />Inspection: <br />Mr. Tidquist accompanied the Division representatives on the site inspection. <br />Mine plan: The Division observed the formation of agglomerated tailings from the new mill for placement on <br />the Arequa Gulch VLF (see Photo 1). Mr. Tidquist pointed out the stemming material crushing operation on <br />the West Blue Overburden Storage Area (see Photo 2) and showed the Division where the remainder of the <br />stemming material crushing operation would take place in the South Cresson pit (see Photo 3). <br />Construction: <br />In the Squaw Gulch VLF, the Division observed: <br />• Placement of spent ore for the purpose of stabilizing the PSSA vertical risers in the southwest end of <br />the SGVLF PSSA. (see Photo 4); <br />• SGVLF liner construction was shut down for the season; <br />Water levels: The inspection continued as the Division visited each of the high and low solution collection <br />system transducers and recorded water level values. The recording sheet is included as Attachment A, and <br />the values are summarized below in the Transducer Readings. Mine Low Volume Solution Collection System <br />(LVCS) inspection log books were observed in the Phase IV and V pump shelter buildings (see Photo 5). Mr. <br />Tidquist stated he would find out where the log books for the Phase I and II LVCS and the High Volume <br />Solution Collection System (HVCS) log books are kept. <br />Page 3 of 8 <br />