2011-05-11_INSPECTION - M1980244

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PERMIT #: M-1980-244 INSPECTOR'S INITIALS: BMK INSPECTION DATE: April 12, 2011 OBSERVATIONS The Division conducted a construction and monitoring inspection of the site on April 12, 2011. Present during the active portion of the pad inspection was Mr. Michael Ellis of CC&V. Present during the phase V pad construction portion of the inspection were Mr. Timm Comer of CC&V and Mr. Joe Hickey of Amec, the design and QA/QC engineering firm for the phase V leach pad. 1) The phase I, 11, III & IV Leach pads area were inspected. The pads were actively being leached & loaded with ore at the time of the inspection. The phase IVC perimeter ditch area was inspected and found to be in good repair. All the storm water control structures for the pad and haul roads appeared to be in good shape. The following readings were recorded from the high and low volume solution collection pressure transducers for phases I, 11, III WV, pregnant ponds. The phase I high volume solution collection transducer # 1 was recorded at 21.2, transducer# 2 was at 23.5, and transducer # 3 was at 24.2. The low volume solution collection transducer # 1 was recorded at 0 .28 and transducer # 2 was at 0 .48. The piezometers for the pregnant pond were recorded at 38.0 and 33.2 feet respectively. The phase 11 &111, High volume solution collection transducer # 4 was recorded at 12.8 transducer # 5 was at 14.4 and transducer# 6 was at 13.6. The Low volume solution collection transducer # 1 was recorded at 0.48 and transducer # 2 was at 0.43. The piezometer for the pond was recorded at 31.9. The phase IV, high volume solution collection transducer # 7 was recorded at 16.5 transducer # 8 was at 14.4, transducer # 9 was at 13.6, and transducer # 10 was at 12.9( the pipe). The Low volume Solution Collection Transducer # 1 was recorded at 12.1 and transducer # 2 was at 13.2 inches of hydrostatic head (all other hydrostatic head readings are in feet). The external pond was inspected and it was holding some water that will be utilized as make up water for the leach pad. The following readings were recorded from the low volume solution collection transducers for the pond. The # 1 transducer was at 12.6 and transducer # 2 was at 2.6 The reading meter for the low volume solution collection transducer # 1 might need calibration. The operator's representative was notified to have the meter checked. The pond liner was found to be in good repair. The under drain discharge area was inspected. All lower ponds, with the exception of the pond above the CRMW ground water monitoring wells, were dry. The AG 1.5 NPDES discharge point area was inspected and found to be dry. The south under drain and AG -1 under drain pipes were discharging at the time of the inspection. The discharge from these pipes is pumped back to the pad as make up water. The main Cresson mine area was inspected; it was active at the time of the inspection. Storm water diversion structures for the haul roads in the area were found to be in good repair. The Iron Clad Globe Hill area was inspected, no problem noted. 2) The Phase V leach pad construction area was inspected. The sub grade of the Phase V leach pad was being prepared for soil liner deployment at the time of the inspection. CC&V plans soil liner deployment as soon as it is cleared for such a deployment by QA/QC personnel on site, as approved in the soil liner deployment specification. The Phase V pregnant pond area was inspected, the second lift of ore is in place. The phase V pregnant pond was approved for solution application by the Division in December 2010, after the as built certification report was submitted. The following readings from the High and low volume solution collection pressure transducers for the pond were collected. High Volume solution collection transducer # 311 was recorded at 12.48, transducer # 312 was at 13.03, transducer # 313 was at 12.94, and transducer # 314 was at 12.91. The Low Volume Solution collection pressure transducer # 1 was at 10.6 and transducer # 2 was at 9.3 inches of hydrostatic head, all other readings are in feet. 3) Inspected the clay burrow area. Clay was being processed in anticipation of clay liner (soil liner) deployment. A large stockpiled, already processed soil liner was located in the old Cameron leach pad area. The Division approved the placement, as part of Amendment # 9 approval. Strom water diversion structures for the area were found to be in good repair. No problem noted. Page 2 of 4