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~M • (Page 2) MINE ID # OR PROSPECTING ID #M-80-244 :~ INSPECTION DATE 10-18-99 OBSERVATIONS INSPECTOR'S INITIALS HK The Division conducted a monitoring inspection of the site on 10 18 99. The purpose of the inspection was also to receive the lab results from the samples collected after the cyanide spill due to a rupture of the Header pipe reported on 10 12 99.Present during the inspection was Mr.Scott Lewis of CC&V. Mr. Lewis provided the results from the sampling locations that were collected in Arequa Gulch and the soil sample that was collected from the small area below the Load out Bin. All the results appeared to be in compliance. There was no detectable cyanide that was observed in the submitted results. Inspected the small area below the load out bv{that the operator placed ore outside of the lined area. It has been covered with soil liner fill, no problem noted. Inspected the PhaseII AND III expansion areas. Work was continuing on both areas. Drain cover was being placed along the west and north side of the Phase II expansion areas. Golder QA/QC were present at the time of the inspection. While in the area, Mr. Lewis requested to place ore in the uncertified areas on the condition that if the area is un certifiable, all the ore will have to be removed. Since the operator is willing to take the risk, the Division granted the request. A brief discussion was held with Mr. Mendziac and Mr. Lewis about the expansion areas and how the operator plas to button down for the winter season. Inspected the high volume and low volume solution collection system areas for phase II and recorded the following readings. LOW VOLUME COLLECTION PUMP NUMBER #1 READ .43 FEET OF HEAD LOW VOLUME COLLECTION PUMP # 2 READ .25 FEET OF HEAD HIGH VOLUME SOLUTION COLLECTION PUMP # 4 READ 22.7 FEET OF HEAD HIGH VOLUME SOLUTION COLLECTION PUMP # 5 READ 25.0 FEET OF HEAD HIGH VOLUME SOLUTION COLLECTION PUMP # 6 READ 29.1 FEET OF HEAD.