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August 26, 2010 C- 1981- 008/New Horizon Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R -Roads <br />N - Availability of Records <br />R - Reclamation Success <br />R - Backfill & Grading <br />R - Revegetation <br />N - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />N - Explosives <br />NA - Slides and Other Damage <br />Y - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />N -Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />N - Other <br />R - Special Categories Of Mining <br />NA - Processing Waste <br />Y -Topsoil <br />COMMENTS <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination <br />4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of <br />Rills and Gullies 4.14.6: <br />• A bulldozer was at work on the slope immediately southwest of Pond 012 (Photo 1), shaping the <br />hillside for reclamation. <br />HYDROLOGIC BALANCE -Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water <br />Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream <br />Buffer Zones 4.05.18: <br />• The water level in Pond 007 was sufficient for discharge to be occurring. Pond 008 was not <br />discharging, although with the irrigation that has occurred on the surrounding fields, the water level <br />appeared to be higher than on previous inspections. Pond 009 was dry, with the exception of a <br />shallow pool of water at the western end. WFC had scheduled work with a small backhoe to repair an <br />area on the southern pond in- slope, where a temporary diversion ditch captures runoff from the north - <br />facing slope of the Benson -West property, uphill of the pond. Flow had been escaping from the ditch <br />and running down the bare slope into the pond. Pipes were to be installed which would carry the flow <br />down the slope and prevent erosion from occurring. <br />• Pit water continues to be pumped to the elevated water tank (storage for dust control purposes) <br />located at Pond 011. Overflow from the tank flows into Pond 011, which discharges on a nearly <br />continual basis. <br />• Approximately two - thirds of the floor of Pond 012 was covered with cattails (Photo 2). The water <br />level in the pond was low, and no discharge was occurring. Pond 013 held only a small pool of water, <br />at the western end. Mr. Fry commented that although not much water is visible on the surface, the <br />pond bottom is definitely spongy. <br />GENERAL MINE PLAN COMPLANCE: <br />• Mr. Fry stated that he had been treating tamarisk plants that were attempting to become established at <br />Ponds 009, 011, 012 and 013. <br />Number of Partial Inspection this Fiscal Year: 2 Page 2 of 6 <br />Number of Complete Inspections this Fiscal Year: 0 <br />