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December 22, 2015 C-1981-022/Elk Creek Mine LDS <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 />N - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />NA - Processing Waste <br />N - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On-site <br />Y - Signs and Markers <br />NA - Support Facilities Not On-site <br />N - Special Categories Of Mining <br />N -Topsoil <br />COMMENTS <br />This was a complete inspection by Leigh Simmons of the Division of Reclamation, Mining and Safety <br />(Division). Doug Smith of Oxbow Mining accompanied the inspection. The weather was snowy with deep snow <br />on the ground. Travel and visibility were very limited which rendered a thorough inspection effectively <br />impossible. <br />The status of the Elk Creek Mine is "active" however no coal is being mined and the activity since the last <br />inspection has been focussed on the early stages of site reclamation. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Records were available in the office. Detailed comments are made at the end of this report. <br />GENERAL MINE PLAN COMPLIANCE: <br />There are no revisions in process. The mine site is being reclaimed in accordance with the plan. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The sealing of the portals was complete. The tunnel liner had been removed. All fans had been removed from <br />the site and all the vent shafts had been filled and capped. MSHA had inspected and approved the work. Rundle <br />Construction contractors had not yet demobilized their equipment. <br />Oxbow intend to develop some bid packages for grading the lamp house and stockpile benches. <br />Demco contractors continue to work on structure demolition, with 5 people on-site (although they were off <br />for the holidays). The work is on schedule, The main Elk Creek Conveyor is expected to come down in early in <br />the new year, with the Stacking Tubes to follow. <br />DOCUMENTS RECEIVED <br />Additional photos were sent by Doug Smith to document the sealing of the mine (figures 3-6). <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 9 <br />