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ORIGINAL -PUBLIC FILE <br />(Page 2) <br />MINE ID # OR PROSPECTING ID #: ti+-I4:;n-gee <br />INSPECTION DATE: 8J~/a~ INSPECTORS INITIALS: RIC <br />OBSERVATION <br />The Division conducted a monthly inspection of the site on 8/2/06.Present <br />during the inspection were Tim Comer and Lawrence Meyers of CC&V. <br />Inspected the under drain area, all lower ponds were dry with the exception <br />of the lowest pond which was holding a very small amount of water and the <br />west side diversion sump, which was also holding a very small amount of <br />water reflective of the monsoon season in the area. Water samples from the <br />under drain were collected from both the South under Darin and 4 INCH PIPE <br />WITH THE operator collecting a split using their own bottle. Samples were <br />placed on ice and delivered to CDOH&E lab in Denver in the afternoon. <br />Inspected the Main South, and East Cresson pits, all were active at the <br />time of the inspection. Back filling of the mined out areas at the East <br />Cresson and main Cresson was continuing. <br />The ramp for the road that will connect the EAST Cresson mine to the Wild <br />Horse area is now taking shape as approved in Amendment # 8. All surface <br />water diversion structures in the facilities were found to be in good <br />repair. <br />Inspected the area where the Load out Bin will be moved as approved in <br />Amendment # 8. The move will take place sometime in 2007. A Technical <br />Revision will be submitted with all the geo technical studies required for <br />the move. The existing LOB area is part the Phase IVC pad with a portion of <br />the area already lined and certified by Golder and Associates. <br />Inspected the Phase IVC area that is not loaded with ore. As reported in <br />the last inspection, to facilitate the solution flow near the into phase <br />area, the 6 inch perforated pipe has bee extended an additional lloo feet. <br />The Technical Revision certifying the as built will be included with LOB <br />change. Inspected the old spent are of the #4 pad area. Removal pf the <br />material and stockpiling it for exploration stemming is continuing. The pad <br />and ponds should be completely removed in anticipation of the Main Cresson <br />mine expansion by the end of September or soon after. Mining should <br />commence in the already removed portion with in the next month, drilling <br />equipment was noted at the time of the inspection. <br />Inspected the Phase I, II, II@ IV leach pads areas and recorded the <br />following readings from the High and Low Volume Solution Collection <br />systems. <br />Phase I High Volume Solution Collection Transducer # 2 was recorded at 26.6 <br />and # 3 was at 23.1, Piezometer for the pond was recorded at 34.1 feet. <br />Low Volume Transducer # 1 was recorded at .18 and #2 was at .61 <br />Phase II AND III High Volume Solution Collection transducer #4 was recorded <br />at 14.0 # 5 was at 11.4 and # 6 was at 14.0. Low volume solution collection <br />transducer # 1 was at .06 and # 2 was at .33. <br />Phase IV high volume solution collection transducer # 7 was recorded at <br />18.2# 8 was at 14.4, # 9 was at 14.9 and # 10 was at 14.0. The read out <br />