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III. COMMENTS -COMPLIANCE Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a complete inspection of the New Horizon Mine for the 3rd quarter, 2001. The purpose of this inspection is to conduct normal operations and environmental compliance and a joint SAE and explosives record check special focus inspection. The weather was clear and warm. AVAILABILITY OF RECORDS: Records were inspected and found to be in compliance. See page 5 of this report for further details. ROADS: Haul roads and the BB road detour was inspected and no problems were noted. The reconstruction of BB road is underway and is close to final grade. Again, no problems were noted. HYDROLOGIC BALANCE: Mine 2: Ponds 7 and 8 had water in them and 8 was discharging but no sample was taken. Pond 9 was inspected and found to be extremely well constructed. One noted concern was at the inlet culvert which could use some flow fill to insure water did not erode underneath the'/: pipe channel (see photo). All ditches and culverts were clear and capable of functioning as designed. BACKFILL 8 GRADING: B & G was in progress as is normal. No problems were noted. The land continues to be reclaimed to the approved post mining topography map and no low spots were noted. EXPLOSIVES: Records were inspected and found to be in compliance. All blasting procedures are being followed and seismograph's readings are available for all but parting shot blasts. Publication of the blasting schedule and a request for any party interested in a pre-blast survey were complete and timely. A check on 3 seismographs for yearly certification was conducted and all instruments were in compliance. GENERAL MINE COMPLIANCE: The mine continues to progress in an orderly and well run fashion. RECLAMATION SUCCESS: A Phase I bond release has been received by the Division and will be inspected later this summer.