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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-1980-110 <br />INSPECTION DATE: 02 March 2011 INSPECTOR'S INITIALS: DB2 <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this <br />inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible <br />violations should be corrected by the dates given to reduce their severity when considered by the Mined Land <br />Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />CORRECTION DATE <br />?1. Problem: The sign as required by Construction Materials Rule 3.1.12(1) is not in place. 05/24 / 11 <br />Corrective Action: Within 60 days of the date of this inspection report, post the sign required <br />under Construction Materials Rule 3.1.12(1) and provide proof to the Division in the form of a <br />photograph that the sign was posted. All of the information required under Rules 3.1.12(1)(a), (b), <br />and (c) must be stated on the sign. <br />2. Problem: The reclamation performed to date is not strictly in conformance with the approved <br />Reclamation Plan. <br />Corrective Action: Before applvinca_for Performance Warranty release, the operator must file with <br />the Division a Technical Revision to revise the Reclamation Plan so that it is consistent with the <br />reclamation that has been performed on the ground. For example, the inspector noted that the <br />reservoir is not lined whereas the approved reclamation plan called for a lined reservoir. The <br />Operator should examine the Reclamation Plan carefully to determine needed revisions. <br />?3. Problem: The mined out pit, which is now a water storage reservoir, is not lined, whereas the <br />approved Reclamation Plan called for a lined pit and reservoir. This is causing an undesirable <br />impact to the prevailing hydrologic balance by exposing ground water, and must be addressed <br />to bring the site into compliance with the State Law and the Regulations of the Division of <br />Reclamation, Mining, and Safety, the Division of Water Resources, and the State Engineer as <br />described in a letter to you dated April 30, 201x'fcopy attached). <br />6 <br />4' <br />PB or PV: PBB <br />TOPIC(S): XM <br />pedding/ <br />PB or PV: <br />TOPIC(S):_ <br />11s <br />04/30 /11