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MINE ID # OR PROSPECTING ID#: M-1994-117 PAGE: 4 <br />INSPECTION DATE: 6-12-09 INSPECTOR'S INITIALS: ACS <br />with organic material, which is why the pit where the tailing are not <br />covered was selected for sampling. The sampled pit is located 66 <br />feet south of one of the ground water monitoring wells used to <br />monitor the tailing pond. This is believed to be monitoring well #3, <br />but this must be clarified by Mount Royale Ventures. <br />Disposal of mill tailing outside of the tailing pond is listed as <br />problem PB-1 on the 6th page of this report. This problem could be <br />re-designated as a possible violation and additional corrective <br />actions may be required depending on the results of the SPLP tests. <br />A thin layer of tailing was observed on the out-slope of the tailing <br />dam. See photo no. 4 and see problem PB-2 on the 6th page of this <br />report. <br />Tailing pond freeboard from the tailing surface to the top of the <br />geomembrane liner was measured to be seven inches at the location at <br />the north end of the pond determined to be the site of minimum <br />freeboard. The north end of the pond is full to overfilled with mill <br />tailing. The southern three-fourths of the pond has several feet of <br />freeboard from the top of the tailing, but this freeboard is largely <br />consumed by impounded water. At the time of this inspection, water <br />sprinklers were operating in the pond for evaporation. Any future <br />tailing disposal must be done using sound milling and tailing disposal <br />practice in compliance with freeboard and water balance requirements in <br />the reclamation permit. <br />No milling has occurred at the Gold Hill Mill in 2009. If operations <br />do not re-commence prior to the end of the year, Mount Royale Ventures <br />must file for temporary cessation in accordance with Rule 1.13 of the <br />Mineral Rules and Regulations of the Mined Land Reclamation Board. <br />The tailing line from the mill to the Cash Mine was inspected. The <br />tailing line is not connected at the upper end. The tailing line <br />enters the Cash Mine at both the secondary escape-way adit and the <br />secondary escape-way shaft. No tailing spills were observed on the <br />alignment inspected. A short distance above the secondary escape-way <br />adit, the tailing line crosses over a historic deep subsided stope; see <br />photo no. 9. There is a joint in the line over the stope. <br />Portions of the Gold Hill Permit are on unpatented claims, which is <br />land managed by the Bureau of Land Management (BLM). Therefore, the <br />existing financial warranty (bond) form must be replaced by a BLM bond <br />form; see PB-3 on the 6th page of this report. A blank BLM bond form is