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December 15, 2011 <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />C -1981- 018 /Deserado Mine <br />V= Violation Issued NA =Not Applicable <br />N - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />R - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />ZTT <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; 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 />Culverts within the main facility area were all clear. Little to no runoff was present in the main facility area during <br />the time of inspection. <br />The Scullion Gulch culvert entrance and exit was clean. Limited water was ponding at the discharge point of the <br />culvert. <br />Culvert on the east end of the Refuse Pile -2/3/4 was clear. Culverts between Refuse Pile 2/3/4 and Refuse Pile 5A <br />were partially filled at the discharge points. <br />Sedimentation pond DP -1 held water with no discharge. Ditches leading into the DP -1 pond from the main facility <br />area were well armored with no erosion visible. Pond embankments were well vegetated with no instability issues. <br />Sedimentation pond RP -2/3 held limited water in the two southern cells with no discharge into the northern cell. <br />The north cell held no water. <br />Sedimentation ponds RR -1, RP -4 and RP -5 held no water at the time of the inspection. Pond embankments were <br />well vegetated with no signs of instability and erosion. <br />The punctured wash down drainline had moisture visible at the base of the pipe through the punctured section. The <br />punctured section is inside the ditch leading into sedimentation pond RR -1. It appears that if any discharge from <br />the punctured section would occur, it would flow into sedimentation pond RR -1. Scott Wanstedt stated the <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />