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August 31, 2011 C- 1981- 008/New Horizon Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected <br />V= Violation Issued <br />N =Not Inspected R= Comments Noted <br />NA =Not Applicable <br />R - Air Resource Protection <br />N - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />N -Explosives <br />R - Fish & Wildlife <br />N - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />Y -Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />N - Support Facilities On -site <br />N - Signs and Markers <br />NA - Support Facilities Not On -site <br />R - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a Partial Inspection of the New Horizon Mine conducted by Marcia Talvitie of the <br />DRMS. I arrived at the mine facilities area at 1:50 p.m. on August 31, 2011. Ross Gubka, Mine <br />Engineer, and Lance Wade, Mine Manager, were both at the office when I arrived. We briefly <br />discussed the OSM Technical Review of PR6, and the upcoming dialogue which will include <br />OSM, NRCS, the Division, and WFC. Mr. Wade said that Western Fuels has hired a soil <br />scientist, and that they are planning to set up a meeting with all the parties sometime in <br />September. <br />Current permitting activities include TR -60 (Pond 015 As- Built, etc.) and MR -81 (Mowing of <br />the IP Reference Area) <br />Weather conditions were overcast, hot, and windy. Mr. Gubka accompanied me during the field <br />inspection. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />• The windy conditions provided an opportunity to observe the stability of topsoil in stockpiles <br />and topsoil that has been redistributed. No erosion of the resource was observed, and the air <br />quality appeared to be very good. <br />• The water truck was observed spraying down the ramp leading into the pit (Photo 1). <br />FISH and WILDLIFE — Rule 4.18: <br />• Three or four species of water fowl were congregating at Pond 011, where a small pool of <br />water remains at the far western end. <br />GENERAL MINE PLAN COMPLANCE: <br />• The last full cut is approximately half done; the next mine cut will be split in two, between <br />the Morgan and WFC parcels. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 Page 2 of 8 <br />