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ORIGINAL -PUBLIC FILE (Page 2) MINE ID # OR PROSPECTING ID #: ~~-~ San-lee INSPECTION DATE: 6/~/n7 INSPECTOROS INITIALS: -~- OBSERVATIONS The Division conducted a partial inspection of the site on 6/28/06, while in the area to inspect the exposed liner to construct a barrier so a portion of the Phase IVC LINED AND CERTIFIED AREA CAN BE LEACHED AS APPROVED IN TR 46. The area had received measurable rain the past few days which was evident during the inspection of the site Mark Vannoni of CC7V was present at the time of the inspection. Prior to the start of the physical inspection, talked to the outside auditors, Mr. GLENN MILLS & MR. JOHN LAMBERT, were on site auditing the mine, for their independent report about the mine being in compliance with the International Cyanide Standard, set for such facilities. They asked about our permitting process, for such facilities. Walked the exposed liner the entire length. As expected there were some tear of the liner. Approximately 14 flagged tears were noted. These tears and the clay liner underneath the remembrance will be reprised in accordance with the approved liner deployment specification for Amendment # 8. The repair and solution application pipe repair will be constructed under the Supervision of Golder and Associates, the amendment and construction QA/QC engineer. The Division will be present on July 5th for the repair and construction work, which will be part of the Monthly inspection for July. While in the area, Inspected the Phase I,II,III & IV leach pad areas and recorded the following readings, from the High and Low volume Transducers. As reported in the last inspection report, the Low Volume Transducer pumps were still utilizing the auxiliary generator. Phase I High Volume Solution Collection Transducer #1 was recorded at 7.0 (read out meter still not functioning) #2 was at 41.6 and # 3 was at 41.0 piezometer for the pond was at 58.6 feet. Low Volume solution collection transducer #1 was recorded at .37 and # 2 was at .66. Phase II &III High Volume solution Collection transducer # 4 was recorded at 37.7 # 5 was at 30.2 and # 6 was at 38.0. Piezometer for the pond was at 37.5 feet. Low volume transducer # 1 was at.18 and #2 was at.68. Phase IV High Volume Solution Collection Transducer # 7 was recorded at 39.8, #8 was at 39.9, #9 was at 39.7 and # 10 was at 40.2. Low Volume transducer # 1 was at 7.3 and # 2 was at 8.4 inches of hydrostatic head. The small area above (west) of the low volume transducer read out location was almost dry. Once dry, CC&V PLANS to remove the sediment and place it on the pad. Inspected the external pond it was holding about the same amount of water as last week. Low volume solution collection transducers # 1 was at 12.7 & 2 was at 10.2. Inspected the under drain area, both the south and 4 inch pipes were discharging at about the same volume noted during the last inspection. The north under drain and solid 24 inch pipes were still dry. All lower ponds were also dry. I & E Contact Address r BL NAME: TIM COMER r FS r HW OPERATOR: CC8V r HMWMD (CH) STREET: P.n R(~x 191 r r SE CITY/STATE/ZIP: vlcrne cnl ~RAn~ s;na~n r WQCD (CH) r OTHER cc: r CE