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October 26, 2011 C- 1981- 008/New Horizon Mine MLT <br />Inspection Topic Summary <br />Y= Inspected <br />V= Violation Issued <br />N =Not Inspected R= Comments Noted <br />NA =Not Applicable <br />Y - Air Resource Protection <br />N - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />R -Explosives <br />R - Fish & Wildlife <br />Y - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />R -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 />Y - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon Mine conducted by Marcia Talvitie and Sandy <br />Brown of the DRMS. The inspection occurred on two separate days. On the afternoon of <br />Wednesday, October 26, we observed portions of the permit area that are visible from the <br />adjacent public roads: BB Road, 2700 Road, BB27 Road, and 5th Road. Skies were overcast on <br />the 26th, and the area had received rain during the previous night and earlier in the day. We <br />returned to the mine at 9:30 a.m. on the 27th, and checked in at the mine office. Ross Gubka, <br />Mine Engineer, escorted us on an inspection of the mine's operations. Skies were clear on the <br />27th, and temperatures were mild. <br />PERMITTING UPDATE: <br />• TR -60 Pond 015 As -Built - The Division has not yet completed its review of the adequacy <br />response received on Aug. 29, 2011. <br />• TR -61 Soil Sampling and Analysis Plan - A Preliminary Adequacy Review containing <br />comments from OSM and the Division was issued on Oct. 14. An adequacy response was <br />received on Oct. 24th. On Oct. 31, 2011, the Division issued PAR No. 2, which included <br />OSM comments dated Oct. 28. <br />• MR -81 Management of IP Reference Area - A Preliminary Adequacy Review was issued on <br />Aug. 23, 2011. On Oct. 14, a response was received. The Division issued a second <br />adequacy letter on Oct. 18; a second response was received on Oct. 24, 2011. <br />• SL -12 Phase III Bond Release — There are ongoing discussions regarding groundwater <br />monitoring /impacts and reseeding. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />• A blast was scheduled to take place later on Oct. 27. During the inspection, we had the <br />opportunity to observe the completed drill holes being loaded with ANFO, backfill and <br />stemming. Mr. Gubka explained that this was to be a two -deck shot, meaning that the two <br />four -foot intervals of ANFO explosive were separated by four feet of inert backfill. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 1 Page 2 of 11 <br />