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March 16, 2015 C- 1996 - 084 /Lorencito Canyon Mine LDS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />NA - Air Resource Protection R - Roads <br />R - Availability of Records Y - Reclamation Success <br />NA - Backfill & Grading R - Revegetation <br />R - Excess Spoil and Dev. Waste NA - Subsidence <br />NA - Explosives R - Slides and Other Damage <br />Y - Fish & Wildlife NA - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N -Other <br />NA - Processing Waste <br />Y -Signs and Markers <br />Y - Support Facilities Not On -site <br />Y - Special Categories Of Mining <br />Y -Topsoil <br />COMMENTS <br />This was a complete inspection by Leigh Simmons of Colorado Division for Reclamation, Mining and <br />Safety, (the Division). The weather was overcast, with some snow remaining on the ground in shady spots and on <br />northern aspects. Access was not a problem. <br />Vince Massarotti plans to be at the site, with Ron Tokar, from around April 6 for approximately 6 weeks. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The records were in generally good order at the New Elk mine office, although some loose papers remain <br />to be filed away. Detailed comments are made at the end of this report. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />All three fills appeared to be in excellent condition, a green blush was beginning to appear on the terraces. <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 />All ponds were holding water, but none were discharging. <br />GENERAL MINE PLAN COMPLIANCE: <br />No revisions are in progress. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3); Drainage 4.03.1(4)/4.03.2(4); Surfacing and Maintenance 4.03.1(5) and <br />(6)/4.03.2(5) and (6); Reclamation 4.03.1(7)/4.03.2(7): <br />All the roads around the site were passable. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 19 <br />