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PERMIT #: M- 1980 -244 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: April 21, 2015 <br />OBSERVATIONS <br />This inspection was initiated with the Division's understanding that sediment pond EMP -009A was constructed <br />mostly outside the mine's permit boundary. The goal of this inspection was to field verify the extent to which <br />EMP -009A was outside the permit boundary. Chris Hanks, representing the Operator was present during the <br />inspection. Elliott Russell was also present representing the Division. <br />Inspection: <br />EMP -009A is near the Chicago Tunnel in Poverty Gulch on the northwest boundary of the Cresson Project <br />permit boundary. With Mr. Hank's assistance, the Division located permanent boundary markers (see Photo <br />1) and surveyed AM -10 permit boundary marker stakes (see Photo 2). The Division used a hand -help Trimble <br />Juno 3B GPS receiver to record the location of five of these boundary indicators in the vicinity of EMP -009A as <br />well as the EMP -009A berm centerline, left and right abutment survey stakes (see Photo 3), and the perimeter <br />of the EMP -009A construction disturbance (see Photo 4). Based on field observations, a significant portion of <br />EMP -009A was constructed outside the permit boundary. <br />The collected GPS data was processed in the office and the extent of disturbance outside the permit boundary <br />was measured using Google Earth Pro, based on the differential corrected GPS data exported to Google Earth. <br />The disturbance outside the permit boundary was estimated to be 1.35 acres. Figure 1 delineates the extent <br />of this disturbance and Photo 5 provides an annotated aerial view of the recently constructed sediment <br />ponds. The out of bounds disturbance is cited as a potential violation on page 1 of this report. As such a <br />"Reason to Believe" a violation exists letter will be sent to the Operator. <br />PHOTOGRAPHS <br />Photo 1. Required permit boundary sign (east of right abutment — looking SW). <br />Page 2 of 5 <br />