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PERMIT #: M-1980-244- <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: March 21, 2011 <br />OBSERVATIONS <br />The Division conducted a monthly monitoring inspection of the site on March 21, 2011. Present.during the Phase V leach pad <br />.construction'area inspection were Timm Comer and Mark Tidquist.Presnt during the existing valley leach facility inspection was <br />Mark:Vanoni. Weather permitting, construction of the Phase V valley leach pad is expected to being on April 4, 2011. <br />Inspected the'already certified Phase Vvalley leach pregnant pond area and found it to be in good repair. The pond area that is, <br />certified is now loaded with ore and barren solution. The geomembrane lined area of the phase V leach-pad, which is not certified.' <br />was inspected. All the, required storm water runoff protection that was in place was found to'be in good shape. The operator's <br />representatives were riotified to make sure, appropriate care is taken during the removal of these structures, to prevent storm <br />::,,water runoff from affecting the already lined area. <br />Inspected the clay burrow area, where clay is being stockpiled in anticipation of construction commencementof the Phase V leach <br />.pad. Storm water diversion structuresfor"the area were found to be in good repair. Inspected the.Cresson.mine, it was active at the <br />> time ofthe inspection Storm water diversion structures for the haul roads were found to be in good repair. Inspected the East <br />Cresson mine. Thelbackfilling of the'pit is almost complete. Final reclamation will commence as soon as the final grade for the area is <br />estal li'shed a's;approved in the'r6damation plan. <br />With: Mark Vanoni present, continued the inspection of the existing valley leach facility. Two split samples from:phase V low volume <br />solution collection sumps were collected for wad cyanide and metals analysis. The pumps were turned on manually to get the <br />discharge for;the samples. Field parameters of the discharge were recorded at the time the samples were collected. Samples were <br />placed in 'a cooler packed with ice and'delivered to CDPHE lab. <br />During the inspectio,n,the.following readings were recorded, from the high and low volume solution collection transducers for the <br />pregnant ponds <br />Phase V; high':volumesolution collection transducer # 311 was at 13.24 # 312 was at 13.5 # 313 was at 13.8 and # 314 was at 13.8 <br />feetof hydrostatic,headA6W volume solution collection transducer # 1 was at 9.1 and # 2 was at 8.0 inches of hydrostatic head. <br />Inspected,Phase 1,11; li'&,IV each pad's. The pad along the Phase IV area was being loaded-with ore at the time of the inspection. <br />Storm water drainage contro!'structures. for the valley leach facility were found to be in good repair. Inspected the Phase IVC <br />perimeter,ditch area, CC&V. plans to submit a technical revision to extend the berm along this area, for addedprotection. During the <br />inspection; the following readings were recorded from the high and low volume solution collection pressure transducers for the <br />pregnant ponds <br />Phase I 'high volume solution collection transducer # 1 was recorded at 21.6 # 2 was at 20.5 # 3 was at 20.3. Low volume solution <br />collettiori transducer # 1 was at 0.24 and # 2 was at 0 .42. Piezometer # 1 was at 39.6 and # 2 was at 42.0 feet. <br />Phase"II &lll high; valUme',.solution collection transducer # 4 was recorded at 12.1 #5 was at 12.4# 6 was at 120. Low Volume solution <br />collection transducer #.Twas at 47and.# 2 was at 0.66. Piezometer for the pond was recorded at 31.9 feet. <br />Phase IV; high volume solution collection transducer was recorded at 12.1 and # 2 was at 13.1 inches of hydrostatic head. (All other <br />readings are in feetof hydrostatic head unless otherwise noted.) <br />Inspectedthe external pond it was'holding about the same amount of fresh water noted during the last inspection. Low volume <br />solution collection pressure: transducer readings for the pond were recorded at 12.7 for # 1 and 9.2 for # 2. (inches of hydrostatic <br />head) <br />Inspected,the under:drainidischarge area. Both the 4 inch pipe and south under drain were discharging at 0.29 and 1.49 gallons per <br />minute respectively: All •lovier ponds were dry. There was also no discharge from AG1.5, which is a CDPHE NPDES discharge point. <br />After the inspection; a meeting was held with Kevin Riley and Timm Comer, about the technical revision CC&V plans to submit in the <br />near future, the commencement of the phase V leach pad construction, placement of an additional caisson in Phase I and partial <br />liner certification process for Phase V leach pad. <br />The inspection' adjourned after the meeting. <br />Page 2 of,4