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III. COMMENTS -COMPLIANCE <br /> Below are comments on the inspection. The comments include discussion of observations made <br /> during the inspection. Comments also describe any enforcement actions taken during the inspection <br /> and the facts or evidence supporting the enforcement action. <br /> Topsoil <br /> Topsoil piles on the Moore parcel (designated for reclamation of the haul road) were stable, <br /> vegetated, and exhibited no signs of erosion. <br /> General Mine Plan Compliance <br /> Drilling and blasting activities were focused at the southern end of the permit area. (Topsoil and <br /> overburden had been completely stripped from this area at the time of the 30-Sep-2008 <br /> inspection.) The first shot in the new cut had occurred earlier in the week (Figure 7). The <br /> inspectors had the opportunity to observe the holes for the second shot, drilled and loaded <br /> (Figure 8), prior to viewing the blast itself. Washed gravel is used for stemming the holes; holes <br /> were currently being loaded in two decks. <br /> Fish & Wildlife <br /> A large flock of Canada Geese occupied Pond 007 and the surrounding area. Near Pond 013, <br /> three Golden Eagles were observed roosting in cottonwood trees and flying low over the area. <br /> Revegetation <br /> A portion of the NH1 mine, northwest of the current permit area, has yet to be granted Phase III <br /> bond release. The vegetation on the parcel (Dryland Pasture) appears to be a monoculture of <br /> wheat grass. No shrubs were included in the seed mix, at the request of the landowner. This has <br /> made establishment of vegetative cover difficult (impossible, so far) to achieve (Figure 9). <br /> HA pointed out that the portion of BB Road Detour south that was obliterated following opening of <br /> BB Road earlier this year must be seeded this season for erosion protection. (Figure 10) <br /> Air Resource Protection <br /> A water truck was observed loading its tank from the elevated tank at Pond 011 and applying <br /> the water to haul roads in the permit area. <br /> Reclamation Success <br /> Hay on the San Miguel Power parcel had been cut for the third time this season, and was <br /> windrowed for baling. The WFC parcel was in the process of the third cutting. <br /> Potential Permit Expansion Area <br /> Following the field inspection, RG transported HA and MT to an area located immediately north <br /> of the NH 1 mine that is being considered for inclusion in the New Horizon Mine permit. <br /> This concludes the Inspection Report for the October 2008 inspection conducted with OSMRE <br /> oversight. <br /> New Horizon Mine C-1981-008 15 & 16-Oct-2008 <br /> -3- <br />