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(Page 2) MINE ID # OR PROSPECTING ID # M-80-244 INSP]'sCTION DATE 11/2/94 INSPECTOR'S INITIALS JAP, MBL i WY-F O88ERVATIOHB Pre-inspection Conference The Cresson Project Phase 1 heap leach pad, pad #2 drain cover material source area, crusher, :ind upland diversion were inspected during this one day inspection. Jim Pendleton, Mike Long, Bill York-Feirn and John Hardaway of CCSVG commenced the inspection with a cor..ference room discussion of the drain cover material gradation concern. Terry Manziac of Golder Construction Services, the lead QA/QC representative at the site, joined us for a t~~ur of the heap leach pad and the Pad #2 drain cover source area. The initial discussion included the control procedures exercised by the Contractors (Ames & Gundle), the Control Engineer (Bateman), the QA/QC Representatives (Golder), and the Owner (CC&V) in accomplishing the placement and size gradation control of the drain cover material. A notice of probable violation had been written by Gary Curtiss of the Division several days prior. Jim Pendleton presented John Hardaway with a copy of a memorandum he had forwarded to Bruce Humphries the previous day. In that memorandum (see attached) Jim recommended recision of the earlier approval of a specification change dealing with the drain cove[ material size gradation, based upon the failure of CCSVG to properly control the placem~ant and gleaning of oversize material from the drain cover material. Jim stated that without appropriate oversize control, it would not be prudent for the Division to approve th~a use of the material. Jim also expressed concern regarding Golder's ability to certify tha drain cover material which had been placed in their absence. The discussion continued for approximately an hour at which time we commenced our site inspection in order to e:Kamine the materials in question. Heap Leach Pad R1 Drain Cover Material Installation John Hardaway drove Jim, Mike and Bill to the upper south side of the heap leach pad #1 where the drain cover material has been largely placed over the completed geomembrane liner. Terry Manziac met us at the site. During a period of approximately ten minutes the five of us collected approximately 100 oversize cobbles from an area of approximately 1/2 acre. These cobbles varied from 2 inches to approximately 12 inches in diameter. Jim Pendleton then informed John Hardaway and Terry Manziac that he was of the opinion that the drain cover material in place on the pad did not appear to correspond to the size gradation characterization provided to the Division in considering the requested specification adjustment. Terry Manziac and Jim Pendleton then completed a walking examination of a larger area of the drain cover material. During their discussion Jim realized that the later daily size gradations performed by Golder, all of which detected no oversiz~a material were intended by Golder to be QC samples of the gleaned material, in order to v~arify that it had been picked to remove oversize. Jim Pendleton also noted that there appeared to be differences in the gradation of the material between local areas of the pad, suggesting variance in the source material. Jim noted particular concern regarding .sn apparent greater proportion of oversize material on the "road" pile of drain cover material near the top of the pad. This area was piled up to 15 feet in thickness to accommodate the trucks carrying the material onto the liner. Jim Pendleton then asked whether it was possible to determine the location of the drain cover material which was placed onto the pad during the period that Gary Curtiss had cited in his reason to believe letter. Jim expressed a concern that this material be examined in order t~~ ensure that an anomalous proportion of oversize wasn't placed above the liner. John Hardaway did not immediately know whether the exact location could be established. He stated chat the period was at most ten minutes in length during which no more than