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November 10, 2015 C-2010-089/New Horizon North Mine BFB <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 />R - Availability of Records N - Reclamation Success <br />R - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />R - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On-site <br />R - Hydrologic Balance R - 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 />N - Processing Waste R - Topsoil <br />COMMENTS <br />This was a complete inspection of the New Horizon North Mine conducted by Brock Bowles of the Colorado <br />Division of Reclamation, Mining and Safety. The weather conditions were clear in the morning with increasing <br />clouds and wind, cooling in the afternoon. The temperature was approximately 55 then decreased to 35 degrees <br />and the ground conditions were damp. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked after the ground inspection. All required records were on file and <br />available for review at the mine office. No problems were noted with the records review. Please see the <br />availability of records at the end of this report. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />The main pit area is continuously backfilled as the pit advances to the North. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />On Aug 28, 2015, WFC self-reported, to the Division, a blast that exceeded the peak particle velocity by <br />0.01 in/second. The blast took place on Aug 7, 2015 and the exceedance was recorded near the Garvey property. <br />No complaints were filed. The normal blasting sequence is nearing the Garvey property again which is scheduled <br />for the following week. I asked Rick Wolney, mine manager, what precautions are being taken to ensure the peak <br />particle velocity will not be exceeded again. He said that WFC is working closely with WestCo, the blasting <br />company, on a plan. WestCo has also consulted some experts at the University of New Mexico for assistance with <br />the plan. At the time of this inspection, Mr. Wolney did not have a final blast design. <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 />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />