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<br /> <br />Page 1 of 10 <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br /> <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br /> <br />MINE NAME: <br />Cresson Project <br />MINE/PROSPECTING ID#: <br />M-1980-244 <br />MINERAL: <br />Gold <br />COUNTY: <br />Teller <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Timothy A. Cazier <br />INSP. DATE: <br />March 15, 2016 <br />INSP. TIME: <br />10:00 <br />OPERATOR: <br />Cripple Creek & Victor Gold Mining Company <br />OPERATOR REPRESENTATIVE: <br />Marc Tidquist <br />TYPE OF OPERATION: <br />112c - Construction Regular Operation <br /> <br />REASON FOR INSPECTION: <br />Normal I&E Program <br />BOND CALCULATION TYPE: <br />None <br />BOND AMOUNT: <br />$173,434,420.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Windy <br />INSPECTOR’S SIGNATURE: SIGNATURE DATE: <br />April 25, 2016 <br /> <br />The following inspection topics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br /> <br />INSPECTION TOPIC: Support Facilities On-site <br />PROBLEM/POSSIBLE VIOLATION: Problem: Field investigation of the mill seep and onsite discussions requires a <br />revision to the February 24, 2016 response to “DRMS question on drainage from the southeast corner of the <br />High Grade Mill Pad”. <br />CORRECTIVE ACTIONS: The revised response should: 1) Explain mill process water containment to further <br />explain the mine’s assertion that the seep is not process water, 2) Address the observed staining, 3) Discuss the <br />relatively small affected area, 4) Commit to monitoring the seep, and 5) Provide a schedule for containment <br />with the planned SGVLF liner tie-in to the mill platform liner. <br /> <br />CORRECTIVE ACTION DUE DATE: 5/26/16 <br /> <br /> <br /> <br />