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PERMIT#: M-2012-032 <br /> INSPECTOR'S INITIALS:ACY <br /> INSPECTION DATE:February 1,2022 <br /> The site was active during the inspection. Given the recent avalanches much of the activity was dedicated to <br /> ongoing snow removal and clean up. The vast majority of the Revenue TSF is covered in 10-25 feet of snow <br /> which buried all equipment and materials being stored there.Trucks were observed hauling snowfrom the main <br /> Revenue site to the Atlas TSF for storage. <br /> Construction of the new Reagent Room remains on hold during winter conditions. The building is mostly 'dried <br /> in' and remains in the same condition as observed at the previous inspection (Photo Two). No reagents were <br /> observed within the Reagent Room at this time. Staff also observed the Mill Facility. OSMI staff stated that the <br /> mill has intermittently been active since commissioning efforts temporarily ceased in September. Small test <br /> batches have been ran as necessary but the mill has largely been inactive for an extended period. The few <br /> remaining Mill personnel are working on cleaning out the system and winterizing it to avoid any unnecessary <br /> damage to the system while it sits idle (Photo Three). It is anticipated that Mill commissioning will not resume <br /> until late in quarter 2 (May-June). Some reagent chemicals were observed throughout the Mill Facility as <br /> approved under TR-15 for the purposes of Mill commissioning (Photo Four). While the site is not in a period of <br /> formal Temporary Cessation, if milling activity is to cease for an extended period,the best management practice <br /> would be to remove the unnecessary reagent chemicals from site until resumption of Mill commissioning. <br /> Overall the Mill Facility and Reagent Room areas appeared well maintained. <br /> One of the new Equipment Warehouse Storage buildings approved under TR-16 has been constructed where <br /> the connex storage previously was. A few newly delivered 55 gal drums were observed outside of secondary <br /> containment within this building (Photo Five). During the inspection the Operator was actively working to <br /> correct the lack of containment problem by consolidating other materials to free up spill pallets. Other activity <br /> on site included building support bracing for the Raise Bore-Secondary Escape out of 6" x 6" metal tubing. <br /> As previously mentioned an avalanche slide has buried the majority of the Revenue TSF.The temporary tailings <br /> liner for material generated from commissioning of the Mill was fully engulfed and indistinguishable from other <br /> buried features within the Revenue TSF (Photos Six and Seven). On December 22, 2021 the Division received a <br /> request from OSMI to begin permanent placement of tailings, specifically for use of the Atlas TSF while Revenue <br /> TSF is unsafe for use during the winter months. On January 21, 2022 the Division responded back stating that <br /> before the request can be considered, the complete as built package for the Atlas TSF must be submitted and <br /> the Division must accept the as-built certification. To date the Division has not yet certified the Atlas TSF. <br /> Lastly the Division inspected the Atlas TSF. An area approximately 100 yards x 100 yards had been cleared of <br /> snow.This was in an effort to complete the as-built certification survey. Key features such as the Atlas Sediment <br /> Pond or diversion ditches could not be distinguished. Snow from the Revenue site was being hauled and placed <br /> along the southeast side of the cleared area, near the approximate location of the Atlas TSF Sediment Pond <br /> (Photo Eight). Mill tailings from the commissioning process were also being stored at the Atlas TSF on a liner <br /> along the southwest side (Photos Nine and Ten). Additional liners were located on site to provide additional <br /> storage capacity if necessary (Photo Eleven). In previous discussions with the Operator it was indicated that the <br /> temporary liner at the Revenue TSF was full, however because the Mill was not running, more tailings would <br /> not be generated so this was not a problem. When in fact, the Mill had been sporadically running after the <br /> Revenue temporary liner was full and/or the temporary liner area became buried, resulting in tailings which <br /> need placement. OSMI elected to place approximately 75 CY of tailings on a liner in the uncertified Atlas TSF. <br /> This is cited as a problem for failure to comply with the approved mining plan. OSMI shall submit the required <br /> as-built certification information pursuant to the Division's January 21, 2022 letter within thirty days. No <br /> additional tailings may be placed in the Atlas TSF until certification is accepted bythe Division. OSMI shall comply <br /> with all other stipulations of the approved 2015 Tailings and Waste Rock Management Plan. <br /> Page 3 of 9 <br />