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III. COMMENTS -COMPLIANCE This was a complete inspection conducted by Jim Burnell of CDMG on June 13, 2001. The inspection was accompanied by Mark Milner of Oxbow Mining Inc. (OMI) and Tom Anderson of OMI accompanied the inspection to Elk Creek. The weather was very cool, with heavy rain that occasionally became sleet. The site was active. First stop was the Elk Creek construction site. The roads were muddy from the rain which had started the night before. The new pond has been completed and it looks good. There was no water in the pond at the time of the inspection. Workers were in the process of excavating for the declines. Larger rocks were being broken up to provide more stable fill material for the area down the canyon from the declines. Additional fill was being generated from the slope above the declines and pushed down the slope. Three thick sandstone ledges have been uncovered on the slope which should provide sufficient stability to the slope during the active life of the Elk Creek Mine. Up the canyon from the declines, two shaft collars have now been buried in fill with four feet of collar remaining above the new level of the fill. Drilling has not yet begun on the shafts. Sediment control was in place across the site and despite the unfavorable conditions, the site was in excellent condition. Elk Creek was flowing into its new culvert just above the pad area containing the shafts. Silt fence was in place and effectively preventing silt from entering the creek. In summary, the Elk Creek project appears to be proceeding without any problems and without any regulatory issues. OMI staff has recently sprayed thistle and whitetop on the outslopes above the railroad tracks which had been noted in the previous inspection. The West Valley fill appeared stable, with no erosion. Vegetation is growing very well on the topsoiled portions, especially in areas which has been covered with the excelsior matting. The east gob pile was stable. It is uncertain at this time whether there will be sufficient excess topsoil from Elk Creek to cover the pile. The access road to the fire suppression area also look great with very good vegetation regrowth. Silt fence has been installed where the mine road crosses Sanborn Creek. At substation 3, the pond contains some water. Topsoil pile was stable with no weeds or erosion.