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• (Page 2) • <br />MINE ID # OR PROSPECTING ID #: M-teBn-~aa <br />INSPECTION DATE: <br />INSPECTOR'S INITIALS JCS <br />OBSERVATIONS <br />This inspection was conducted in order to monitor the compliance of the operation with the requirements <br />of State Statutes, Rules and the conditions of the permit. The site was active at the time of the inspection. <br />The operator was represented by Mr. Scott Lewis during the inspection. <br />At least one ID sign was in evidence. Markers for the boundaries of the approved affected area were not <br />entirely checked. <br />At the VLF, the active leaching of ore on Phase 3 is in progress. Work is underway on the relocation of Hwy <br />67 west of Phase 3 and south of the VLF, including a bridge over Arequa Gulch below the toe dam. <br />Construction of one of the four supporting piers for the bridge appears complete and is largely done on <br />another two. In conjunction with the construction ongoing at the site, additional topsoil is being added to <br />the already sizable stockpile south of the ADR. The pile is being shaped so as to serve as a visual barrier, <br />and the operator indicates tentative plans to stabilize all or part of the stockpile with vegetation by the end <br />of the year. The stockpile will ultimately be separated from the active elements of the operation by the <br />relocated Hwy 67. <br />Construction of the external storage pond at the ADR was underway. The company estimates its completion <br />in late May. The compliance well approved for this facility has been installed but remains to be developed. <br />The additional compliance wells approved for Squaw and Poverty Gulches are in place and the collection <br />of representative samples has begun. According to the company representative, the analytical data <br />representing sampling during the required first 5 calender quarters of the well's operation will be supplied <br />to the Division upon completion of the initial sampling program. <br />Inspection was made of the three new sediment ponds installed in Squaw Gulch, below the planned <br />western limits of the Squaw Gulch overburden storage pile. In this general area, material is also being <br />removed by the operator from the old mine waste dumps and taken to the VLF; since gold values in this <br />material exceed that of the ore presently being supplied by the active mining operation. <br />At the Ironclad Office and Maintenance Area, locations are being cleared for the construction of additional <br />shop facilities and a bulk storage facility. The additional shop facility is necessary in order to accommodate <br />the larger trucks that will be employed in the future operation. Assembly of one of those trucks was in <br />progress at the time of the inspection in addition to a large drill. <br />Waste material continues to be transported to the Iron Clad and Globe Hill clump areas. It was estimated <br />that material will continue to be disposed of in this area for another 2 1/2 to 3 years. The North Cresson <br />Mine area lies immediately south of these disposal areas and is being drilled at this time in preparation for <br />mining. Once this mining has been completed, the Squaw Gulch overburden storage pile will be extended <br />across the mined out area and continued on down the drainage. <br />The inspection concluded with a trip to the bottom of the main pit. Drilling continues in this area, but the <br />company is concerned with the stability of the pit walls and "lay back" is being considered. <br />No compliance issues were identified during this inspection. <br />I & E Contact Address <br />NAME: Mr. Scott Lewis <br />OPERATOR: Crioule Creek and Victor Gold Minin¢ Co. <br />STREET: P.O. Box 191 <br />CITY/STATE2IP: - Victor. CO 80860 <br />