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MINREC, INC. <br />BLUE RIBBON MINE <br />IMPOUNDMENT YEARLY INSPECTION <br />In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly <br />to determine if the impoundment has been maintained as designed, and in accordance <br />with the approved plan and the applicable regulations. This yearly inspection is for the <br />impoundments located at the Blue Ribbon Mine. <br />On March 14, 2007, I performed the required yearly inspections. I, J. E. Stover, have a <br />wide variety experience in the design and construction of earth fill embankments. <br />Nothing was observed during the inspection that would indicate the ponds have a <br />potential for failure. There was no appearance of erosion, instability, structural <br />weakness or other hazardous conditions. There are no required monitoring procedures <br />or instrumentation other than quarterly and annual inspections. There are no aspects <br />which might affect stability and there is no required maintenance. Pond 5 had a pool of <br />water below the elevation of the primary spillway at approximate elevation of 6337. <br />Pond 4 was damp. There was no discharge from either pond. <br />The ponds/impoundments have the following approximate capacities: <br />IMPOUNDMENT CAPACITIES -ACRE FEET <br /> Water Sediment Total <br />Pond 4 <br />Pond 5 0.06 <br />0.47 0.07 <br />0.28 0.13 <br />0.75 <br />Notes: <br />Capacities based on latest electronic topography (June 1999). <br />To the best of my knowledge anc~beN #,t~e impoundments have been maintained as <br />designed and in accordance~Q,~~~P~,v~d plan and applicable regulations. <br />Stover ~ ' >-a Date <br />-1- <br />