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September 24, 2015 C-1980-004/McClane Canyon 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 <br />R - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />N - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On-site <br />R - Signs and Markers <br />N - Support Facilities Not On-site <br />N - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the McClane Canyon Mine by Zach of Colorado Division of Reclamation, <br />Mining and Safety (DRMS). Chuck of McClane Canyon Mining (MCM) was present during the and acompanied <br />DRMS in the inspection. Weather conditions were clear with the temperature around seventy five degrees <br />fahrenheit and ground conditions were mostly dry. The inspection started with record check and with an inspection <br />at the McClane Canyon Mine on September 24, 2015. General maintenance was being performed at the mine site <br />at the time of the inspection. The McClane Canyon Mine records were located at the office of J. E. Stover & <br />Associate, Inc. in Grand Junction, Colorado. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All records are kept at the office of J. E. Stover & Associate, Inc. in Grand Junction, Colorado. Please see the <br />Division's Availability of Records checklist at the end of this inspection report for more detailed information. <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 />Pond cleaning had occurred prior to the inspection. Reachable sediment is being dug out until the area becomes to <br />saturated to pull in and reach further into the pond. Sediment from the pond is brought up above the pond to the <br />sediment drying area. The sediment dry area is surrounded by berms that direct runoff from the area back to the <br />sediment pond. No issues were observed. <br />Ditch located along the outlets of the sediment pond has been re-established. The silt fence associated with the <br />ditch has been cleaned of excess sediment. <br />All sumps have been dug out and sediment has been removed up site near the portal work bench area. All <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 6 <br />