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ORIGINAL -PUBLIC FILE (Page 2) MINE ID # OR PROSPECTING ID #: nn_tegp-yea INSPECTION DATE: t2JL4J115 INSPECTOROS INITIALS: ~_ OBSERVATION The Division conducted a monitoring inspection of the site on 12/14J05. The main purpose of the inspection was to do a joint inspection with Golder and associates on a portion of the Phase IVC solution application tertiary pipes, as that were recently tied in to the pipes away from the infer face ditch pipes due o the concern a spill might occur outside the protected area as it happened in September, Golder project engineer Dr. Lupo had recommended the changes and the Division wanted to make sure Golder was satisfied with the work conducted and that all repair work was in accordance with the approved specification for the pad, before the certification for the changes was submiffed as part of the Technical Revision. Looked at both pipe changes the work appeared to have been conducted in occordance with the Board approved speciRcaflon. Golder engineers agreed to submit the P.E certification report for the changes with the pending iechnicol Revision. Also met Mr. Brent Branson, who Is also a P.E and one of the original Golder Engineers who was oprt of the group that submitted the original leach pad design for Phase i project in 1994. He will be replacing Dr. Lupo, who is moving to a Golder office in Australia. During the inspection with both Golder representatives present CCBV discussed the possibility of raising the Squaw Gulch overburden storage tiff height, from the current 300 feet maximum -ength to 400 feet. Both Golder design engineers stated that there were mony overburden storage areas in excess of 400 feet in both Arizona and Nevada and that they will use the most conservative design criteria, to demonstrate that the 400 feet liff end dumped until recalamtion will be stable. In addition they stated that in September, they run another stability analysis for the existing Jeff limitation of 300 feet and showed fo the Division that }he tiffs were very stable. They were informed, according to the Hard Rock Rules and Regulations, an operator Is required to demonsfrafe using an Industry wide utilized sfabilify- modeling program. In addition, the Division's engineering staff can recommend additional design criteria that they deem necessary to demonstrate the tiff will be stable. Golder representatives agreed to consider the Division's recommendation, prior to submlffing the model. According to CC&V, the change might only be necessary for one tiff, or until enough mining had taken place where backfilling of the pits can commence. CCBV also mentioned that as discussed before, they now would like to increase the bac~l height of a small portion of the East Cresson backfill from 50 feet to 75 feet. the backfilling of pits is very much recommended by the Division, in fact if CC&V would like to backfill the pits to original contour, the Division will not object. Inspected the Phase 1, 11, 11 AND IV leach pods and collected the following readings from the Nigh and Low volume solution collection Transducers. Phase 1 high Volume solution collection fransducer # 2 was recorded at 53.8 # 3 was of 54.4 Piezometer for the pond was a} 52.6 feet .Low volume transducer # 1 was at .16 and # 2 was a} .56. Phase 1 & 1111 high Volume Solution Collection fransducer # 4 was recorded at 29.8, # 5 was at 17.8 and # 6 was at 30.8. Piezometer for the pond was at 30.5 feet. Low Volume transducer # 1 was at . I S and # 2 was at .69 Phase IV high Volume solution collection transducer # 7 was recorded at 40.3, # 8 was at 39.0 # 9 was at 40.1 and # 10 was at 40.3. Low volume # 1 was at 13.9 and # 2 was at 5.0 inches of hydrostatic head (Note: all other fransducer readings are in feet of hydrostatic head, unless otherwise noted) Inspected the external pond, it was holding what appeared to be partially frozen wafer. Low volume hansducers for the pond were recorded of .12.4 for # 1 and 10.8 for # 2 Inspected the under drain area, both the South and four inch pipes were discharging. No changes in the lower pond from the last inspection.