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April 6,2011 C-1981-018/Deserado Mine JRS <br /> ROADS—Rule 4.03 Construction 4.03.1(3)/4.03.2(3)Drainage 4.03.1(4)/4.03.2(4)Surfacing and <br /> Maintenance4.03.1(5) and(6)/4.03.2(5)and(6)Reclamation 4.03.1(7)/4.03.2(7): <br /> -The haul road to the refuse piles was stable and well maintained at the time of the inspection. The road was wet <br /> and there was not a problem with fugitive dust. There was no rutting or erosion on the road. <br /> -The access road along the conveyor corridor was well maintained and stable at the time of the inspection. The <br /> road was wet and there was no problem with fugitive dust. There was one problem on the road below the slot <br /> storage area. There was some erosion off of the road. eserado has this area coned off for safety and will get the <br /> road repaired. <br /> -The mine entrance road is a paved road. The road was well maintained and stable at the time of the inspection. <br /> SUPPORT FACILITIES -Rule 4.04: <br /> -The B-Vent shaft pad was stable, with no erosional problems noted. The shaft was fenced off. The road spur to <br /> the shaft was stable and well maintained. <br /> -The main mine facilities area, including the prep plant bench, substation bench and portal area were all stable and <br /> in good condition at the time of the inspection. <br /> -The mine loadout structure was stable at the time of the inspection. The rail loop and associated facilities are no <br /> longer a part of the Deserado Mine permit(removed with PR-04). There was no mine-related activity at the rail <br /> loop. <br /> -The Return Shaft 3 pad and surrounding area was stable at the time of the inspection. Deserado is still grouting <br /> the shaft and plans to complete that this summer. The road spur to this area was well maintained and stable. <br /> -The abandoned Return Shaft 2 area and diesel storage facility was stable at the time of the inspection. Deserado <br /> is still deciding what to do about the drill stem remaining in the RS-2 hole. Once a decision has been made, <br /> Deserado will plug and seal the hole and backfill the area. The concrete containment berm around the diesel <br /> storage tank was in good condition. The road spur to this area was well maintained and stable. <br /> -The rock dust tank 3 and nitrogen injection system bench was stable at the time of teh inspection. No problems <br /> were noted on the pad. The road spur to this area was well maintained and stable. <br /> -The rock dust tank 2 pad and surrounding area was stable. No erosional problems were noted. The road spur to <br /> this area was well maintained and stable. <br /> -The Halandras landfill area was stable at the time of the inspection. Deserado currently has two open slots for <br /> mine related waste disposal. The subsoil and topsoil for these slots is stockpiled at the ends of the slots for <br /> reclamation. <br /> SIGNS AND MARKERS—Rule 4.02: <br /> -The mine ID sign was in place at the entrance to the mine. The mine ID sign contained all of the necessary <br /> information. <br /> -The topsoil stockpiles at the refuse piles were marked as required. <br /> DOCUMENTS RECEIVED: 1Q11 Sediment Pond and Refuse Pile inspections;TR-68 revised Map 157. <br /> This completes the 6 April 2011 inspection report for the Deserado Mine <br /> Number of Partial Inspection this Fiscal Year: 8 <br /> Number of Complete Inspections this Fiscal Year: 3 <br /> Page 4 of 6 <br />