2016-10-20_INSPECTION - M2012023

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PERMIT#: M-2012-023 INSPECTOR'S INITIALS:TCW INSPECTION DATE: October 17,2016 OBSERVATIONS This was a routine monitoring inspection conducted by TC Wait of DRMS; Mr. Brent Tamburelli was present representing the operator. The site is located about 5 miles north of Cokedale east of CR 26.5. The site was last inspected in July 2012 at permitting. At the time of this inspection, the site was dry and mining operations were occurring along the western side of the site, moving to the east. The entrance road was marked with the permit sign and the permit boundaries were marked with t-posts. Topsoil has been salvaged and piled on the north side of the current pit area. The pit highwall was about 20 ft high toward the south of the site, and thins to the north with the rock seam. Mr.Tamburelli stated that Bedrock Blasting was contracted to do the blasting at the site. Per the permit application, the blasting contractor will be tasked with keeping the blasting plan and records for the site. Stockpiles of material totaling approximately 3,000 tons are located adjacent to the working mine face. Mr.Tamburelli indicated on the 2015 annual report that about 14 acres have been affected. No reclamation work has been done at this point. Minimal erosion was noted on the site. The haul road was bermed to prevent water runoff down the slope face. No evidence of standing water was observed in the pit. Weeds were not observed in the pit area. The site is generally stable and in good condition. RECOMMENDATIONS: 1. As mining progresses, the Operator should work to establish the benched final grade on the north side of the pit. 2. The Operator should verify with the blasting contractor that the pertinent blast plan and records are being kept in accordance with the DRMS permit. 3. Bond evaluation should be done at the time of the next DRMS inspection. Page 2 of 5