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OBSERVATIONS <br />PERMIT #: M -1980 -244 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: June 16, 2011 <br />1) The Division conducted a monitoring and construction progress inspection of the site on June 16, 2011. The site was active <br />at the time of the inspection. Present during the inspection were Mike Ellis and Mark Vanoni of CC &V and Joe Hickey of <br />Amec, the design engineering firm, who is also conducting the QA /QC of the Phase V leach pad construction. <br />2) The Phase 1,11, III and IV leach pad and the phase V pregnant pond areas were inspected. Along the Phase I pad, east facing <br />slopes, outside of the Tined area, CC &V had placed additional surface water control measures, to limit the drainage from <br />the Phase V toe berm. The BMP was found to be in good repair. The Phase IV C pad perimeter ditch was inspected and <br />found to be in good shape. CC &V plans to extend the lined ditch berm along this area to the crest of the Phase IV pad, in <br />the near future. The following readings were collected from the high and low volume solution collection pressure <br />transducer and piezometers for the pregnant ponds. The Phase I high volume solution collection transducer # 1 was <br />recorded at 23.5 # 2 was at 20.1 and # 3 was at 18.5. The Low volume solution collection transducer # 1 was at 0.43 and # 2 <br />was at 0.46. The piezomters for the pond were recorded at 36.6 for # 1 and 29.2 for # 2. The phase II high volume solution <br />collection transducer # 4 was recorded at 12.0 # 5 was at 13.1 # 6 was at 12.1. The low volume solution collection <br />transducer # 1 was recorded at 0.43 and # 2 was at 0.46. The piezometer for the pond was at 31.9 feet. The phase IV high <br />volume solution collection transducer # 7 was recorded at 13.8 # 8 was at 12.1 # 9 was at 10.5 and # 10 was at 10.4. The <br />low volume solution collection pressure transducer # 1 was at 12.7 and # 2 was at 11.8 inches of hydrostatic head The <br />phase V high volume solution collection transducer # 311 was recorded at 12.57 # 312 was recorded at 13.1 # 313 was at <br />13.4 and 314 was at 12.8. The low volume solution collection pressure transducer # 1 was at 13.8 and # 2 was at 11.8 inches <br />of hydrostatic head. The loaded ore on top of the pregnant pond was being leached at the time of the inspection. (All other <br />hydrostatic head measurements are in feet of hydrostatic head unless otherwise noted.) The external pond was <br />inspected. The exposed liner to the elements was found to be in good repair. The pond was holding about the same amount <br />of water that was observed during last month's inspection. The low volume solution collection pressure transducers for the <br />pond were at 13.3 for # 1 and 7.4 for # 2, inches of hydrostatic head. <br />3) The under drain discharge area was inspected. All lower ponds were dry at the time of the inspection. The south under <br />drain was discharging at 1.89 gpm and the 4 -inch pipe was discharging at 0.17gpm. All the discharge is pumped back onto <br />the pad as make up water. The NPDES discharge point, AG 1.5 was inspected and it was dry. <br />4) The phase V leach pad construction area was inspected. Since the last inspection in May,approximately 193,000 square <br />feet of clay liner and 250,000 square feet of 80 mil geomembrane has been deployed since the last inspection in May. The <br />deployed liner was walked, inspected, and found to be in good repair. The anchor trench for the deployed liner was walked, <br />inspected, and found to be constructed as approved in the specification. Amec QA /QC personnel were on site observing the <br />deployment as approved in the reclamation permit. <br />5) The Elkton reclaimed area was inspected. The side lopes were stable and graded to an approximate 2.5:1 slope. The <br />operation is in compliance with the approved reclamation plan. <br />Page 2 of 4 <br />