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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-19RO-9ad <br />INSPECTION DATE: 1n/99/1n INSPECTORS INITIALS: R_ <br />OBSERVATIONS <br />The Division conducted a monitoring and construction progress inspection of the site on <br />10/29/10. Present during the inspection were, Timm Comer and Tom Shepherd from CC&V and <br />Joe Hicky of Amec, he manger of QA/QC for the construction of Phase V pad. <br />The inspection began by walking the entire perimeter of the Phase V PSSA CC&V plans to <br />submit the as built design for the pond in anticipation of loading the area with ore and <br />apply solution. With the exception of a very small area along the North facing slopes <br />near where drain cover was being deployed at the time of the inspection, the PSSA area <br />should be completed by the end of the day on Friday. <br />Since the Division had inspected the site twice a month during construction and has been <br />reviewing the weekly and the as built certification report is in the process of being <br />submitted to DBMS, and the additional financial warranty is posted and being reviewed by <br />the Division, DRMS granted CC&V's request to start loading ore in the PSSA area. <br />Both geommebrane and clay liner was being deployed along the south facing slopes of the <br />ore storage area. Because of the recent snow the area received, construction crews were <br />removing snow from the upper anchor trench and the already deployed clay zone in <br />anticipation of geomembrane liner deployment. The PSSA pumps are now in place. Power <br />source for the pumps was being installed at the time of the inspection. Auxiliary <br />generator for the PSSA was also in place. The operator will need to make sure this <br />generator is started on frequent basis to make sure it can be started easily in case <br />there is a power failure. The low volume solution collection transducer shed is now in <br />place. CC&V plans to submit the as built certification of the PSSA area as soon as final <br />edits are completed. <br />The high volume solution collection pumps are in place. The shed and electrical power <br />source for the pumps were being constructed at the time of the inspection. The shed for <br />the low volume solution collection transducer read out area is now in place. An auxiliary <br />generator in the event of a power failure is also placed along the north side of the ADR <br />plant, where an enrichment tank is being constructed. On Tuesday 10/26/10, a minor <br />incident where one of the contractors for the enrichment tank, dislodged the coupling <br />form the header pipe where less than 0.851b NACN was estimated to have reported outside <br />the protected area. The required reporting is if the total NACN that is reported outside <br />of the protected area exceeds 10lbs. CC&V immediately took actions to remove all the <br />material from this area and place it on to the pad. Appropriate detoxification of the <br />very small area near the ADR, was implemented. In addition, CC&V and Ron Roberts, <br />construction manager for CC&V have a written directive for all workers near such areas <br />that they will need to implement prior to engaging in any activity that could cause such <br />incidents. The Division will receive a written report of the incident and the corrective <br />actions taken by the operator. Because of the small amount of non reportable NACN, the <br />Division did not cite it as a possible problem. The area was inspected and was found as <br />reported by Timm Comer, manager Environmental Affairs. <br />Continued the Inspection to the Phase I,II,III &IV leach pad areas The Phase IVC leach <br />pad perimeter ditch was inspected and found to be in good repair. <br />While in the area, collected the following readings from the Phase I,II,III & IV High and <br />Low volume solution collection pressure transducers. <br />Phase I High Volume Solution collection transducer # 1 was recorded at 44.7 #2 was at <br />51.8 and # 3 was at 54.7.Pizometers pipes # 1 was recorded at 54.8 and # 2 was at 49.2 <br />(referred to as 000 by CC&V.)CC&V as requested connected the auxiliary caisson that was <br />drilled in late summer to pressure transducer readout so the level can easily be checked. <br />Low volume solution collection transducer # 1 was recorded at .35 and #2 was at .46 <br />Phase II &III High Volume Solution Collection pressure transducer # 4 was recorded at <br />40.4 #5 was at 36.7 and #6 was at 43.3. Low volume solution collection transducer # 1 was <br />recorded at .56 and #2 was at .20. Pizeometer for the pond was recorded at 44.5. <br />Phase IV, High Volume Solution collection transducer # 7 was recorded at 42.9 #8 was at