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MINE ID # OR PROSPECTING ID#: M-1977-342 PAGE: 2 INSPECTION DATE: 8-26-2004 INSPECTOR'S INITIALS: ACS OBSERVATIONS Bear Paw Gulch was inspected. This gulch is tributary to the tailing impoundment, and in the earliest years of mill operation accepted runoff from the asphalt paved mill facilities area. Subsequently, a pipeline was installed in the gulch to convey runoff from the paved area to the tailing pond. Prior to installation of the pipeline, residues derived from the paved area, including mill tailing, were deposited in the gulch. Also, there was an accumulation from a historic tailing spill in the location of a drop box in the tailing line where it crosses Bear Paw Gulch. During the summer of 2004 the residues in the gulch and the spilled tailings were removed and placed into the tailing impoundment. Removal of residue was done by scraping the ground surface to take the residue, vegetation, and a thin layer of surface soil. Also, deadwood in the gulch was collected and piled for burning at a later date. Based on observations during this inspection, all tailings and deleterious residues were have been removed from the gulch. The areas where vegetation was removed will be broadcast seeded this season. The barge pipeline project was inspected. Excavation in the pipeline corridor has been handled in-house by Henderson personnel up to the date of this inspection. However, as the project approaches the mill, a contractor will complete a large wetland crossing and the county road crossing. In accordance with Rule 7.3 of the Mineral Rules and Regulations of the Mined Land. Reclamation Board, the pipeline must be tested and certified, and the results and certification accepted by DMG, prior to placing the pipeline into service. No problems or concerns with the pipeline project were noted during this inspection. The topsoil salvage and relocation project approved in technical revision TR- 013 was well under way at the time of this inspection. All of the roads and other topsoil relocation infrastructure have been installed. Topsoil movement priorities to this point have been: • Relocation of topsoil in the way of the barge pipeline project. • Relocation of topsoil closest to inundation by the tailing pond. Henderson has developed a strategic plan in the form of a spreadsheet that will guide the topsoil project over the next two years and will keep the project safely ahead of inundation by tailing. Henderson's weed control efforts were inspected. The primary weed problem at Henderson is Canada thistle, and the largest infestations have been in the tailing basin. Concentrated efforts using herbicide have significantly reduced the thistle population at the site. Other weed issues include a first appearance of Ox-eye Daisy at Henderson this year. The infestation was confined to a single location, and was aggressively sprayed. Purple loosestrife was noted for the first time during this inspection. Control for this weed species will be required during the next growing season. The DMG hereby requests that Henderson provide the annual weed report for the facility with each annual reclamation report provided to DMG.