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August 29, 2011 C- 1980 - 004 /McClane Canyon Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />INTRODUCTION: <br />R -Roads <br />Y - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />Y -Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the McClane Canyon Mine conducted by Mike Boulay of the Division of <br />Reclamation, Mining and Safety on August 29, 2011. There was no operator representative present during the <br />inspection. There were a few mine site employees working at the shop and warehouse. There was no other <br />activity at the site. The mine is currently inactive and in temporary cessation. Weather conditions were sunny and <br />warm. Ground conditions were dry. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked at J.E. Stover & Associates office on the afternoon of August 29th. The <br />records files are all up to date and complete. See the attached records checklist at the end of this inspection report. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10, Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13, Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Drainage structures and diversion culverts in the portal area were dry. The perimeter ditch behind the shop area <br />was dry and well maintained. The mine was not discharging water. The sediment pond was inspected and no <br />problems were identified. The water level in the pond was a couple of feet below the principal spillway (see <br />attached Photo No. 1). <br />The location of the rock fall that occurred in December 2010 in the clean water diversion behind the exhaust fan <br />housing was inspected. Another slab of rock has fallen since the last complete inspection conducted in May, 2011 <br />(see attached Photograph No. 2). MCM has consulted with rock stabilization experts to develop and implement a <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 8 <br />