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
ECOSA:
On May 24, 2016, CC&V notified the Division of a leak in a fresh water pipeline. An approximate loss of 300 gallons per
minute (gpm) was noticed at the HGM and a pipeline inspection found a leak at the toe of the ECOSA dump within
proximity of where the fresh water line is buried. The Division observed water surfacing at the toe of the ECOSA (Photo
2). This water was being captured by the toe berm and channeled through a temporary ditch across the toe road and down
a rip-rapped channel on the southern slope of sediment pond EMP 020 (Photo 3). Mr. Horton stated that the flowing
water observed coming out of the toe was measured at approximately 60 gpm. The Division is concerned that the contact
between the ECOSA and native ground has been saturated with the fresh water leak and may have impacted the stability
of the dump. On June 21, 2016, the Division received a follow-up document which summarized the event and gave an
update on short term and long term solutions. Within this document, CC&V stated that an internal geotechnical inspection
was completed on the face of the ECOSA and determined the stability of the ECOSA is not compromised. Though an
internal inspection was completed on the face, the Division requires a more detailed engineering evaluation of the stability
of the ECOSA regarding the water leak. This is cited as Compliance Problem 1 on page two of this report.

CC&V has informed the Division that they are developing plans for a temporary water line and a permanent replacement
line. Plans for the temporary and permanent lines must be submitted for Division review through the Technical Revision
(TR) process and approved by the Division prior to the construction of either replacement water line.

SGVLF Inspection:
The Division, Mr. Horton, and Ms. Baker were accompanied by Mr. Ron DiDonato into the SGVLF (Photo 4). Liner
installation had recommenced in early June and crews were actively installing an anchor trench on the outside of the main
haul road at the edge of Phase I (Photo 5). As previously noted in the Division’s April 28, 2016 inspect report, CC&V
plans to not immediately start Phase II activities (besides rough-grade earthwork and underground workings remediation)
of the SGVLF after Phase I. The Division concluded that a delay of construction schedule of an Environmental Protection
Facility must be submitted for Division review and approval through the Technical Revision process. This TR will need to
include information regarding stormwater controls on Phase II areas. After reviewing TR-59 and TR-72, the Division has
determined that a TR will need to be submitted to propose a plan to ensure the haul road is over the liner system for
haulage of crushed ore and agglomerated tailings from the Load-Out Bin to the SGVLF. Vehicular traffic for the SGVLF is
currently not occurring over a liner system and there is a potential for off-liner impact. This is cited as Compliance
Problem 2 on page two of this report.

The Division observed the recent placement of rip-rap in the Phase II diversion channel (Photo 6). Currently this channel
has three small sections still needing rip-rap to be completed. The three new level indicators have been installed at the
Pregnant Solution Storage Area pumps near the Squaw Gulch Adsorption Desorption and Recovery facility (Photo 7). The
fourth indicator, near the toe of the first heap leach lift, was still being installed (Photo 8); which will acquire data of the
pregnant solution level outside of the pumps’ cone of influence. The underdrain ponds were inspected and the geogrid
wildlife ramps were completed (Photo 9).

HGM Inspection:
Following up with previous observations, the Division inspected the southwest corner of the HGM pad where a
seep/possible discharge was observed coming from the edge of the HGM pad liner. These areas of concern were dry at the
time of the inspection. The Division observed that the secondary containment for the cyanide vat leach tanks was cleaned
out and the approved containment capacity has been restored (Photos 10 & 11).

AGVLF Inspection:
The AGVLF was inspected and accessed by the 10,100-foot and Phase V pumps access roads. No ponding of solution was
observed on the top of the AGVLF pad and associated access roads. The Phase V PSSA solution levels were checked. At
13:31, the following High Volume Solution Collection levels were recorded: XDCR #311, 19.1’; XDCR #312, 18.9’;
XDCR #313, 19.6’; and XDCR #314, 19.1’. At 13:43, the following Low Volume Solution Collection levels were
recorded: XDCR #001, 9.17”; and XDCR #002, 16.1”. These readings were all within their corresponding range of
acceptable values. The solution levels of the other various PSSA Phases of the AGVLF were not checked as a part of this
inspection.

Page 3 of 11