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(Page 2) MINE ID # OR PROSPECTING ID # M-94-117 INSPECTION DATE 5-6-97 INSPECTOR'S INITIALS GC OBSERVATIONS This was a monitoring inspection conducted in response to calls from Dave Tipton and Bob Mason notifying us that water had been observed running out of the mill. Dave Tipton, Dan Zdikowski, and Tim Kramer were on-site for the operator. While on-site, the tailings pond spray evaporation system, the land application system, and the Hazel- A adit were also inspected. Water Discharging From The Mill Building There was no water running out of the mill building during this inspection. There were one or two inches of water on the floor in the lower end of the mill building near the thickener tank and less than an inch in the crusher area and in the fine ore bin. According to the operator's representatives, a valve had been opened near the base of one of the steady head tanks to allow water to flow into a nearby floor drain and into the sediment pond. This drain turned out to be plugged so the water flowed into the fine ore bin, into a floor drain in that area which leads to the lower portion of the mill building containing the thickener tank. From there, the water flowed into a sump area along the southeast interior wall and seeped through a metal access hatch to the outside. The water flowed down hill for what appeared to be less than 100 feet and seeped into the ground. There was no evidence of erosion or sediment deposition outside the mill building. The operator must seal this hatchway so that it is water tight. The valve needs to be safeguarded and the floor drain opened so that any accidental spills or releases will be directed into the sediment pond. See Problem PB-1 on page 4 of this report. Tailings Pond There was approximately three feet of freeboard in the tailings pond. The water level of the pond had risen to near the top of some of the hay bales in the northeast end of the pond without overtopping them. Tailings Pond Spray Evaporation System The spray evaporative system was operating during this inspection. Mr. Zdikowski stated that .a recent 24 inch snowstorm had damaged portions of the 3/4" pvc line and sprinkler heads in this system, that access had been difficult due to the snowstorm and that he had been recently repairing the existing system. Most of the snow had melted except in shady areas or where it had drifted. In all, there are 20 sprinkler heads spaced uniformly along the northwestern side of the tailings pond. According to the approved design for the spray evaporative system as outlined in a letter to the Division from Richard Fox dated March 17, 1996 (`Water Spray Evaporation Calculations and Design, Gold Hill Mill') the design calls for 20 sets of X manifolds spaced along two distribution lines, each manifold containing 4 spray nozzles. Each nozzle is designed to handle approximately 3.5 gallons per minute. This adds up to 80 spray nozzles required in the approved spray evaporation design. The current setup is 60 nozzles shy of the approved design. A recirculating pump also still needs to be added to this system. The 2.5" single hose spray nozzle set on the 4' high steel frame at the center point of the narrow, southwestern end of the tailings pond does not fulfill the requirements of the approved plan. This has been addressed in PV-1 in the 4-9-97 inspection report. LAND APPLICATION SYSTEM The Land Application system is outlined in an April il, 1996 letter from Mr. Fox. regarding `Water Spray Land Application System, Gold Hill Mill.' This system still has not yet been hooke~9 up at the time of the inspection so this needs to be completed immediately. The approved design calls for three parallel distribution lines designed for 60-75 gpm with sprinkler heads spaced at 40' intervals along the lines. This has been addressed in the 4-9- 97 in,apection report.