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OBSERVATIONS <br />PERMIT #: M- 2009 -076 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: August 25, 2011 <br />This was a monitoring inspection of the Hukill Gulch Millsite; DRMS File No. M- 2009 -076, operated by Venture <br />Resources, Inc. This site is located approximately 2 miles north of Idaho Springs, Colorado in Clear Creek <br />County. I, Jared Ebert and Berhan Keffelew of the Colorado Division of Reclamation, Mining and Safety <br />conducted the inspection. Mr. Ryan McHale and Patrick Maher of Venture Resources accompanied us on the <br />inspection. <br />This was a follow -up inspection of the installation of the Composite Liner System for the Barrier Impoundment <br />and Bench #1 portion of the tailings impoundment. All three layers of the system have been installed. <br />According to Mr. Maher and Mr. McHale, representative pictures have been taken of the installation process. <br />The liner system is comprised of three components; a Geosynthetic Clay Liner (Bentomat DN), overlain with a <br />textured 60 mil HDPE Geomembrane, overlain with a GeoComposite Drainage layer. All three layers have <br />been laid over the designated portion of the tailings impoundment and properly placed in the anchor trench. <br />The anchor trench has been backfilled with soil and an MSHA safety berm has been constructed on top of the <br />trench. <br />The Geomembrane was attached to the concrete footing of the leachate collection barrier using the batten <br />bar system discussed in the permit application. A small amount of water has collected at the base of the <br />impoundment. It appears the installation of the Composite Liner System; for this portion of the tailings <br />impoundment, was conducted in accordance with the approved plan. According to Mr. McHale, they will <br />begin processing material and placing tailings into the impoundment in the near future. <br />Page 2 of 5 <br />