2016-07-08_INSPECTION - M1980244 ‎(2)‎

• Permit No: M1980244
• IBM Index Class Name: Inspection
• Doc Date: 7/8/2016
• Doc Name: Inspection Report
• From: DRMS
• To: CC&V
• Inspection Date: 6/16/2016
• Email Name: TC1
• Email Name: WHE
• Media Type: D
• Archive: No

PERMIT #: M-1980-244
INSPECTOR’S INITIALS: ERR
INSPECTION DATE: April 28, 2016
PROBLEMS/POSSIBLE VIOLATIONS

INSPECTION TOPIC: Overburden & Development Waste
POSSIBLE 1: A leak of a fresh water pipeline in the East Cresson Overburden Storage Area dump has occurred.
CORRECTIVE ACTIONS: The Operator shall submit an appropriate engineering evaluation, demonstrating that the
stability of the dump has not been compromised by the water leak, before the corrective action due date.
CORRECTIVE ACTION DUE DATE: July 23, 2016

INSPECTION TOPIC: Acid or Toxic Materials
PROBLEM 2: Vehicular traffic for the SGVLF is currently not occurring over a liner system and there is a potential for
off-liner impact.
CORRECTIVE ACTIONS: The Operator shall submit a Technical Revision regarding the modification to the Squaw
Gulch Valley Leach Facility to address the unlined haul road before the corrective action due date.
CORRECTIVE ACTION DUE DATE: September 6, 2016

INSPECTION TOPIC: Processing Facilities
PROBLEM 3: A significant volume of metallurgical processing fluid was observed near the edge of liner. The approved
permit states the remainder of the mill leach circuit water balance, not recycled, will be pumped to AGVLF or SGVLF and
either injected into the barren pipeline or to a designated drip tube distribution system. As such, this infiltration area and the
injection wells are unapproved structures and the construction and use of these structures is not authorized by the Permit,
the Act and Rules.
CORRECTIVE ACTIONS: The Operator shall submit a Technical Revision regarding the modification of the mill leach
circuit water balance before the corrective action due date.
CORRECTIVE ACTION DUE DATE: August 7, 2016

OBSERVATIONS

The Division of Reclamation, Mining and Safety (Division) conducted an inspection of the Cresson Project (Permit File
No. M-1980-244), a Regular 112d(3) Designated Mining Operation Reclamation Permit with 5,989.7 permitted acres and
an approved post-mining land use of Rangeland and Wildlife Habitat. The mine, operated by the Cripple Creek & Victor
Golding Mining Company (CC&V), is located southeast of Cripple Creek, Colorado and north of Victor, Colorado. Elliott
Russell, with the Division, inspected the site. Tamara Baker and Gary Horton, both representing the Operator,
accompanied the inspection. This inspection was carried out as a part of the Division’s normal monitoring program. The
primary focus of this inspection was to monitor ongoing construction projects on site. The following facilities were
inspected during this site visit:

Acreage Reduction near Goldfield
East Cresson Overburden Storage Area (ECOSA)
Squaw Gulch Valley Leach Facility (SGVLF)
High Grade Mill (HGM)
Arequa Gulch Valley Leach Facility (AGVLF)

Goldfield:
The area associated with acreage reduction AR-02 was inspected (Photo 1). On May 20, 2016, CC&V submitted a request
to release approximately 35.2 acres near Goldfield (northeast of Victor) and stated that the lands associated with the
acreage reduction have not been a part of the active mining area nor have they ever been within the affected lands
boundary. The Division observed the approximate location of the lands and has determined that there is no recent
disturbance and concluded that nothing observed would prevent the approval to release the requested 35.2 acres. On June
23, 2016 the Operator requested to withdraw AR-02 so they could submit AR-03 which includes an additional 7.8 acres in
the Squaw Gulch/Gold Run area. AR-03 was received June 23, 2016 and the additional lands requested to be released will
be inspected in July.

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