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PERMIT #: M-1980-244 <br />INSPECTOR’S INITIALS: TC1 <br />INSPECTION DATE: September 26, 2016 <br /> <br /> <br />Page 2 of 8 <br /> <br />OBSERVATIONS <br /> <br />This was an aerial photo inspection of the Cresson Project conducted by Tim Cazier of the Colorado Division of <br />Reclamation, Mining and Safety (Division) based on aerial photographs taken by the Division. No operator was <br />present during the inspection. The site is a 112d-3 gold mine located between Cripple Creek and Victor in Teller <br />County. <br /> <br />The aerial photos were taken on September 26, 2016. The purpose of the inspection was to provide the Division <br />a broad perspective that cannot be obtained from the ground and to document changes in areas of the mine <br />experiencing rapid change. The Division expects to perform aerial inspections quarterly. <br /> <br />The following table summarizes the attached photos: <br />Photo ID Mine Facility Perspective Notes <br />Photo 1 Wildhorse Extension Pit <br />(WHEX) <br />Looking NW Teller County Road 82 beyond <br />Photo 2 Chicago Tunnel (M-1988-026) <br />& North Cresson pit (future) <br />Looking <br />south <br />SGVLF beyond, Mollie <br />Kathleen tourist mine on right <br />Photo 3 East Cresson OSA (ECOSA) Looking <br />west <br />Grassy Valley in foreground, <br />Altman backfill beyond <br />Photo 4 South Cresson Looking <br />west <br />Arequa Gulch VLF beyond, <br />Main Cresson on right <br />Photo 5 Main Cresson Pit Looking NW Note pit backfill on west side; <br />Altman backfill on right <br />Photo 6 Arequa Gulch VLF Looking <br />west <br />Crusher area in center <br />Photo 7 North Cresson (future pit area) Looking SE SGVLF to upper right, SG OSA <br />near center <br />Photo 8 Squaw Gulch OSA Looking <br />south <br />Ironclad facilities to left, <br />Altman backfill beyond <br />Photo 9 Squaw Gulch VLF (SGVLF) Looking <br />east <br />Squaw Gulch OSA in upper <br />left, Topsoil stockpile #34 in <br />lower left <br />Photo 10 ECOSA, WHEX, & Altman <br />Backfill <br />Looking SE Altman backfill near center, <br />ECOSA left of Altman <br />Acronyms: <br />ADR – Adsorption/desorption Recovery <br />PSES – Process Solution Enhancement System <br />PSSA – Pregnant Solution Storage Area <br />OSA – overburden storage area <br />VLF – valley leach facility <br />Photo 10 shows the merging of the ECOSA and the Altman backfill as discussed with CC&V personnel on <br />November 9, 2016. This discussion led to an additional adequacy review letter for Amendment 11 that included <br />a request for clarification on the ultimate height for both the ECOSA and the Altman backfill, and a stability <br />analysis for the slope shown in Photo 5. Photos 2 and 7 depict the approximate limits of the proposed North <br />Cresson Pit as it encroaches on Poverty Gulch. <br /> <br />No problems were observed. <br />