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August 28, 2015 C-1981-018/Deserado Mine ZTT <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA Not Applicable <br />N - Air Resource Protection N - Roads <br />N - Availability of Records N - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste N - Topsoil <br />COMMENTS <br />This was a partial aerial inspection of the Deserado Mine conducted on August 28, 2015. Photographs were taken <br />by Harry Ranney of Colorado Division of Reclamation, Mining and Safety. The conditions of the site appeared to <br />be dry with clear weather. Temperatures for the day were around eighty five degrees fahrenheit. <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 />As noted in the July inspection report that the perimeter ditch of refuse pile RP -2/3/4 had cutting and needed to be <br />reestablished. From the photograph of this area, it is hard to determine if this has been completed and will be <br />followed up with the September inspection. <br />Ponds located in the facility area (DP -1, PP -I and PP -2) all held water. From the distance of the photos, it is <br />unknown if the ponds were discharging at the time of the inspection. It appears that cattails surrounding the <br />primary spillway inlet of pond DP -I have been sprayed to ensure flow into the riser pipe isn't impeded. <br />Embankments of the facility ponds remain stable. No signs of damp spots or stability issues are observed. <br />The B -seam dewatering pond system held water all the way through to the second to last settling pond. The final <br />sediment pond, the Last Chance Pond, is dry. No discharge is occurring. The pond embankments appear stable and <br />vegetated. No issues are observed. <br />Ponds associated with the slot storage and train loadout (SS -1, SS -2, RRS-I and RR -I) were dry. No issues were <br />observed. <br />Refuse pile ponds RP -2/3, RP -4 and RP -5A were all dry. All embankments were stable with no issues observed. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 5 <br />