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PERMIT #: M-1980-244 <br />INSPECTOR’S INITIALS: ERR <br />INSPECTION DATE: April 28, 2016 <br />The HGM infiltration trench on the north side of the AGVLF was observed (Photo 12). The trench is no longer in use and <br />HGM solution is being pumped to injection wells now. The bird balls in the trench will need to be removed and the trench <br />backfilled with material. To ensure the stability of the area is not compromised, the slope and toe of the pad shall remain <br />and the backfilling will need to be done with separate material. <br /> <br />The Division observed an area of concern near the edge of liner south of the water tank on the north side of the AGVLF, <br />south of the HGM (Photo 13). Ponded HGM solution was observed between the toe of the AGVLF Pad and the edge of <br />liner berm (Photo 14). The solution had been covered with bird balls. The Operator’s representative could not explain this <br />at the time of the inspection and stated they would look into it. On June 20, 2016, Mr. Horton informed the Division a <br />valve in the injection wells system had malfunctioned and this area was being utilized to allow the mill solution to <br />infiltrate into the AGVLF Pad while the injection wells were being repaired. The Division has concluded that the <br />forthcoming TR associated with the injection well process will need to include proposed plans for the mill discharge if the <br />injection wells are not functioning properly and the HGM is still in operation. As discussed with Compliance Problem 2 <br />of the April 28, 2016 Inspection Report regarding the use of the HGM infiltration trench, the approved permit states that <br />the remainder of the mill leach circuit water balance, not recycled, will be pumped to AGVLF or SGVLF and either <br />injected into the barren pipeline or to a designated drip tube distribution system. This new area being utilized for <br />infiltration of the HGM solution discharge, as well as the injection wells, are unapproved structures and the construction <br />and use of the structure is not authorized by Permit, the Act and Rules. This is cited as Compliance Problem 3 on page <br />two of this report. <br /> <br />This concludes the Division’s Inspection Report; a subset of photographs taken during the time of the inspection are <br />included below. If you need additional information or have any questions, please contact me at Division of Reclamation, <br />Mining and Safety, 1313 Sherman Street, Room 215, Denver, CO 80203, by telephone at 303-866-3567 x8132, or by email at <br />elliott.russell@state.co.us. <br />PHOTOGRAPHS <br /> <br /> Photo 1. Sample photo of lands associated with AR-02 near Goldfield; looking northeast. <br /> <br /> <br />Page 4 of 11