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ORIGINAL -PUBLIC FILE (Page 2) MINE ID # OR PROSPECTING ID #: M-Ieun_~ee INSPECTION DATE: ~ y/"tll/0=s INSPECTOROS INITIALS: Ali OBSERVATION The Division conducted a bi-monthly monitoring inspection and to finalize what will be covered in the pending Technical Revision on 12/30/05. The inspection began at the Iron Clad Globe Hill pad areas where Mr. Gary Goodrich, who was present during the inspection, mentioned the fact that CC&V is in the process of finishing up the detoxification of the ponds for pads I thru V. These pads had been undergoing detoxification including bio detoxification for the past several years. The only issue remaining was the total nitrogen, which was a bit higher than the water quality standards for [he area. According to Mr. Goodrich, they now appear to have met those standards and wanted to further discuss the data-reporting requirement for DMG, before requesting release. The DMG set standard as is the case with all the ponds is, to submit a complete suite analysis, however, the compliance pazameters in accordance with EPA guidelines for decommissioning a leach ad. Are, for PH, & WAD cyanide but because the surface water standards have to also be met, prior to breaching the liner, CC&V had to wait until they met all the standards. Continued the inspection to the Cresson pit areas all the pits, East, west and Main Cresson were active. Once the mining in the East Cresson second Phase is completed, the backfilling will commence. Inspected the Phase I, II, II AND IV Leach Pad areas and recorded the following readings from the High and Low volume solution collection transducers for the pregnant ponds. Phase I High Volume solution collection transducer # 2 was recorded at 55.7 # 3 was at 55.6. Low volume transducer # 1 was at .16 and # 2 was at .68 Piezometer for the pond was at 53.9 feet. Phase II AND III High Volume Solution collection transducer # 4 was recorded at 37.3 # 5 was at 34.9 and # 6 was at 39.8. Low volume transducer # 1 was at .88 and 3 2 was at .12. Piezometer for the pond is was at 38.9 feet. Phase IV high volume solution collection transducer # 7 was at 37.3; # 8 was at 34.9 # 9 was at 39.4 and # 10 was at 38,9. Low volume transducer # 1 was at 16.9 and # 2 was at 7.6 inches of hydrostatic head. Inspected the external pond, it was holding a small amount of what appeared to be frozen water. Low volume solution collection transducers for the pond were at .12.7 and 10.8 inches of hydrostatic head. Note: all transducer readings are in feet of hydrostatic head unless otherwise noted. Inspected the under drain area, both the south under drain and four inch pipes were discharging at a lower flow than what was noted in the last inspection report. After the inspection briefly sat down with Mr. Alec Keith, chief mine engineer regarding CC&V wanting to increase the height of the fourth lift in Squaw Gulch overburden storage area, from the current 300 feet approved under amendment # 8 to 400 feet. He explained the existing pit wall and overburden storage high wall monitoring, which utilizes prisms and other motion detecting techniques such as scanning. He stated that under their current extensive monitoring data, they had only seen some settling in a portion of the East Cresson material because of excess fines but had not observed any kind of major movement, no more than expected during end dumping of such materials in Squaw gulch. He was informed that as long as the appropriate engineering model similar to what was used in amendment # 8 and the subsequent testing and modeling submitted in the summer, for the Squaw gulch over burden storage area, to show that the 300 foot lifts in place, are still stable, show similar results for the 400 foot lifts, and meet all the requirements of the Mined Land Reclamation Board for Hard Rock, Metal and Designated Mining Regulations, the Division will approve the request when the technical Revision is submitted. Both Mr. Goodrich and Mr. Keith were informed that even though CC&V is requesting a temporary lift height change, the total overburden that will be stored in Squaw Gulch would remain as was approved in Amendment # S.Also the maximum height of the overburden storage area will also remain as was approved in Amendment # 8. However, the financial warranty will be adjusted to cover the cost of cutting the additional 100 feet height to the post mining lad use over all slopes of 2.5 to 1.