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(Page 2) MINE ID # OR PROSPECTING ID # M-80-244 INSPECTION DATE 2/3/95 INSPECTOR'S INITIALS JAP The Cresson Project Phase 1 heap leach pad, crusher, processing plant and the proposed area of the mine pit were inspected during this two day inspection. Particular attention was focused upon the Leak Collection and Leak Detection monitoring facilities. Jim Pendleton ~ John Hardaway preceded the field inspection with an hour long discussion of the leak collection, leak detection and piezometer monitoring facilities. We also discussed CC6VG's monitoring frequencies, analytical sampling requirements, and reporting procedures. We first inspected the area of the saturated pool immediately adjacent to the toe dam. Ore was first placed to allow access to the foundation area for the three pump cans. Three 20' thick lifts of ore have been placed, bringing a portion of the sump area to approximately 10' below the toe dam crest. The pumps have been placed in the pump cans and the pregnant solution circulation system has been largely installed. Two approximately 100' x 300' grids of solution dripper piping have been installed above the ore. Solution has been transported from Ponde 5 and SA and placed on the ore. Sodium Cyanide has been added temporarily to the solution at the site of the ore. Next we inspected the five leak detection sumps. Sump No. 1, the most northern of the sumps, had accumulated approximately 1 milliliter of fluid. The influent collection area is completely above the area currently exposed to processing solution. Frost was evident on the walls of the sump and the exposed length of pipe. I suspect the small amount of fluid is the result of melting frost, rather than in inflow from the leak detection pipe. The other four leak detection sumps evidenced some frost but had accumulated no fluid in their collection sumps. No leakage has been detected to date. we next inspected the leak collection effluent pipelines. Two submersible pumps are installed through 6 inch plastic pipe from the southern rim of the heap leach pad. These pumps have been encountering considerable difficulty in operation. Mr. Hardaway reports that they have been removed seven times for modifications. He believes they will now be fully operational. To date the pumps have been activated four times with a total of 7700 gallons of effluent being returned to the heap fluid circuit. Mr. Hardaway reports that samples are collected each time the pumps are activated, and submitted for Cyanide analysis. To date only one analytical set of results, for a sample collected two days after fluid from ponds 5 and SA was first applied to the ore. Mr. Hardaway postulates that this initial fluid is largely remnant from precipitation which fell during construction when the leak collection layer was open to the environment. The permit does require CC6VG to promptly report all monitoring results from the leak detection and leak collection system. While the permit does not specify this concern, I believe it would be desirable for C~VG to complete an audit analysis of the fluid collected by the leak collection system. As I envision this analysis, it would include mass balance analysis of collected fluids chemistry versus the chemistry of the processing fluid. This should allow the determination of probable dilution factors and source leakance. Next we inspected the location of the piezometer readout terminals for the five piezometers buried in the liner cover material above the saturated pool elevation. Data collected to date verifies that all piezometers are working. Mr. Hardaway observed that the barometric corrections had not been completed at this time. However, the data necessary to complete the corrections had been collected, but the algorithm for the correction had not yet been completed. John intends to complete the correction algorithm by the end of February. We inspected the underdrain discharge into the toe dam pond. No effluent was evident at the time of our observation. Mr. Hardaway reports that the sump has not required pumping for the last month. The upland diversion system is in place and functional. The recently drilled monitoring well, #Mw-9, continues to be dry. CC&VG will continue to probe the well weekly. Mr. Hardaway anticipates that the well may make water in the spring, as was the case in well #MW-404,~located in the same "structure" to the south of well #MW-9.