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April 23, 2015 C- 1981 - 018 /Deserado Mine ZTT <br />following reclamation once the vegetation community has started to mature producing good ground cover. <br />Regarding to backfill and grading, the modeled site has a 25% average slope. The 25% slope used in the <br />demonstration is based on a worst case scenario. Majority of the drill sites have a much lesser slope once <br />reclaimed. <br />3. Typical Borehole, Exploration and Shaft Pads: It should be noted that this demonstration for drill hole <br />pads is not applicable to recent and active pads. This demonstration is associated with drill pads <br />constructed in the late 1990's in the D -seam. Drill pad construction described in this demonstration is no <br />longer practiced on site. Regarding to backfill and grading, each site was constructed with an enclosing <br />berm with rock check or silt fence outlets at low points. <br />Active <br />Degas pad site LWB 134 (active) slope was measured by OSM and DRMS using an inclinometer. Slope <br />measurements were recorded approximately between 8.5% to 9 %. Slope measurements were in line with the <br />grading plan associated with active drill hole pads outlined above. The remaining active pads were visually <br />inspected for slope and no issues were observed. All active sites were inspected to ensure cross ripping was <br />conducted directly below the pad for sediment and erosion control. Each site was graded according to <br />Deserado's permit for each of the five active degas borehole pads. <br />The majority of D -seam related degas borehole sites have been fully reclaimed. A few boreholes remain <br />"active" to act as precautionary ventilation if needed. LW 1 -8 degas borehole was inspected and is one of these <br />remaining active sites from the D -seam mining. This pad site is located on a lightly sloped hill with adequate <br />vegetation growth around the borehole. No erosion or cutting was observed in the area. Excess pipe was <br />encounter at the pad and needs to be removed. <br />Reclaimed <br />As noted earlier, reclaimed drill pads inspected were reclaimed between the late 1990's to the fall of 2014. <br />Degas drill pads that were reclaimed were graded to blend in with the surrounding environment with <br />approximate original contour (AOC). Sites reclaimed 5+ years prior to the inspection were stabilized with <br />sufficient vegetation. More recently reclaimed pads though have not yet achieved effective vegetative growth <br />for soil stability. To account for this, Deserado includes significant roughening to the pad. This acts as the <br />sediment and erosion control practice until vegetation can establish itself. No erosion, gullies, sloughing, <br />slumping or stability issues were encounter at any of the twenty sites inspected. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 9 <br />