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(Page 2) <br />MINE ID # OR PROSPECTING ID #: m-19sn-9aa <br />INSPECTION DATE: 1 .44 8,413 INSPECTOROS INITIALS: RK_ <br />OBSERVATIONS <br />The Division conducted a monthly monitoring inspection of the site on 1/4/10 and on <br />1/13/10 to verify the underground remediation work along the Phase V leach pad toe dam <br />area. Present during the 1/4/10 inspection was Mr. Mark Vanoni of CC&V. Present during <br />the 1/13/10 inspection were Tom Shepherd, John Luppo and Tim Commer. <br />Inspected the valley leach facility Phases I thru IV the Phase IV PAD area was actively <br />being loaded with ore at the time of the inspection. <br />Collected the following readings from The High and Low Volume Solution Collection <br />transducers for the pregnant ponds, Phase I, II&III and IV. <br />Phase I High Volume solution collection transducer # 1 was recorded at33.8 #2 was at 39.2 <br />and # 3 was at43.7. Low volume transducer # 1 was recorded at .35 and 3 2 was at.34. <br />Piezomter for the pond was recorded at53.6, the true reading of the hydrostatic head for <br />the pond in feet. <br />Phase II and III High Volume solution collection transducer # 4 was recorded at42.2 # 5 <br />was at 41.5 and # 6 was at 41.0. Low volume transducer # 1 was recorded at.17 and # 2 was <br />at .71. Piezomter for the pond was recorded at 43.3 feet. <br />Phase IV high volume solution collection transducer # 7 was recorded at 29.6 # 8 was at <br />29.1 # 9 was at 29.3 and #10 was at 29.9. Low volume solution collection transducer # 1 <br />was recorded at 13.7 and # 2 was at 10.1 inches of hydrostatic head. Unless otherwise <br />noted, all readings are in feet of hydrostatic head. <br />Inspected the External Pond. It was holding partially frozen water. The following <br />readings were collected from the Low Volume solution collection transducer for the pond. <br />Transducer # 1 was recorded at 13.8 and # 2 was at 12.0 inches of hydrostatic head. <br />Inspected the under drain area. AG 1.5 was dry. All lower ponds were snow packed with <br />little or no frozen water contained. <br />Both the south and AG-1( 4 INCH PIPE) were discharging at the time of the inspection. All <br />the discharge from the under drain is pumped back onto the pad. <br />On 1/13/10, with Dr. John Luppo, and Tom Shepherd present , observed the blast for the <br />underground remediation( Thomson Shaft) for Phase V leach pad. It was agreed after the <br />blast that the shaft will be backfilled utilizing a concrete back fill structure rather <br />than rock back fill as was the case with the Tornado shaft backfill, where the current <br />LOB is located. Given the critical location of the shaft, the Division concurred, that <br />proper way to remediate this shaft. <br />Erath moving work was continuing along the Old Arequa waste storage area that will be <br />utilized as Phase V leach pad. Storm water drainage control was found to be in good <br />repair. <br />I & E Contact Address <br />NAME: MR. TIM COMMER <br />OPERATOR: CC&V <br />STREET: P-0-BOX 191 <br />CITY/STATE/ZIP: VICTOR. C-OI ORADO 80860 cc: r CE