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PERMIT #: M-1980-244 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: July 14, 2010 <br />OBSERVATIONS <br />Narrative: The Division conducted a monitoring and a construction progress inspection of the site on 7/14/10. Present <br />during the valley leach facility of the inspection was Mr. Mark Vanoni of CC&V. <br />Inspected the Phases I,II,III&fV. Enhanced drainage work was being conducted along the Phase IV, pregnant pond and <br />crusher area as approved in the technical Revision. Ames and Amec QA/QC personnel were present making sure liner in <br />the area was not compromised. Active leaching of the East facing list of the Phase IVC pad were taking place at the time <br />of the inspection. <br />While in the area, collected the following readings from the High and low volume pressure solution collection <br />transducers. <br />Phase I high volume solution collection transducer # 1 was recorded at 21.9 , # 2 was at 31.5 and # 3 was at 33.5. Low <br />volume solution collection transducer # 1 was recorded at .39 and # 2 was at .47. Piezometer for the pond was recorded at <br />40.6 feet <br />Phase II&III High Volume Solution Collection Transducer #4 was recorded at 22.8 # 5 was at 24.9 and #6 was at 24.0. <br />Low Volume Solution collection Transducer #1 was recorded at .49 and # 2 was at .18. <br />Phase IV high Volume Solution Collection Transducer # 7 was recorded at 12.5 # 8 was at 12.5 # 9 was at 11.5 and the <br />pipe#10 was at 12.5. Low Volume solution collection transducer # 1 was at 12.8 and # 2 was at 10,2 inches of hydro static <br />head.( all other readings are in feet of hydrostatic head) <br />Inspected the Phase IVC leach pad perimeter ditch, it was found to be in good repair. According to Mark, the HYDO-JEX <br />metal recovery site, appears to have increased the recovery of the gold. No surface failures of the pad were noted at the <br />time of the inspection from the recovery system. <br />Inspected the construction progress of the valley leach facility. Slope contouring and sub grade preparation of the pad was <br />continuing. Liner, geommebrane and soil were being deployed in areas where the QA/QC had verified for such <br />deployment. Leak collection gravel was being placed along areas of the PSSA. <br />Clay was being processed at the borrow area. CC&V, and the design engineer Dr. Lupo, had requested a change in fines <br />specification for the soil liner fill from the current 50% to 65%. After the inspection, the Division met with Mr. Tim <br />Corner and Mr. Mike Ellis to go over the requested changes and the Division's additional request for more supporting <br />explanation of the proposed changes and the possible impacts to liner compaction rate and increased in frequency of <br />testing. <br />CC&V agreed to have Dr. Lupo provide the requested clarifications' and explanation and once the requested changes are <br />made, submit the change request . The Division agreed to approve the changes as long as the additional information is <br />provided and the frequency of testing the soil liner fill is changed from the current 5,000 cubic yard to 4,000 cubic yard. <br />Page 2 of 3