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OBSERVATIONS <br />PERMIT #: M -1980 -244 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: April 17, 2012 <br />The Division conducted an inspection of the site on to observe and discuss two incidents that occurred the week of April <br />13, 2012 in the Arequa Gulch Phase V Valley Leach Facility (VLF) area. The first incident involved the sloughing of <br />some of the drain cover fill (DCF) on the upper portion of the Phase V liner with a north to northeast facing slope. The <br />second incident involved some process solution spilling onto an area off the VLF liner. Mr. Mark Vanoni (CC &V Sr. <br />Environmental Coordinator) was present during the inspection. <br />Inspection: <br />DCF Sloughing: Mr. Vanoni provided a field overview from above the portion of the Phase V VLF where the <br />sloughing occurred (see Photo 1). DCF has slid off the geosynthetic liner starting near the upper anchor trench <br />down to the vicinity of the upper bench. This inspector estimates the sloughed distance to vary between 30 and <br />150 feet. The width of the sloughed area is approximately 200 feet. Mr. Vanoni indicated the sloughing has <br />continued since it was first observed by CC &V personnel last week. Some tension cracking in the DCF was <br />observed (see Photo 2). Some surface scratching of the geosynthetic liner was also observed. However, there <br />was no evidence of liner movement, liner tearing or impacts to the anchor trench. Mr. Vanoni stated crews have <br />been called to locate leaks in the liner and check for meteoric water in the underlying clay liner. The engineer <br />of record has also made multiple site inspections. They are investigating the failure and formulating a <br />mitigation plan. It should be noted that this area is not loaded with ore to be leached and is not scheduled to be <br />loaded for quite some time. The DCF sloughing is cited as Problem 1 on page 1 of this inspection report. <br />Process Solution Spill: The spill occurred in the vicinity of the perimeter safety berm overlying the anchor <br />trench at the toe of the Phase V VLF directly south of the current fuel island. Mr. Vanoni indicated that no <br />anomalies were observed during the VLF perimeter inspection late Wednesday, April 11, 2012. However, <br />some seepage and pooling of water were observed on the outside of the safety berm on the morning of Thursday <br />April 12, 2012. The spill occurred in an area where the edge of the VLF liner is relatively flat and where the <br />edge of liner makes a 90 degree turn (see Photo 3). The water pooled near the edge of the liner and flowed <br />downgradient back onto the liner. The water was determined to be process water, specifically pregnant solution <br />and presumed to come from the adjacent slope of the VLF. The flow of process water to the adjacent slope was <br />terminated and soils from the off -liner impacted area were excavated and moved onto an area underlain by liner <br />on April 12, 2012 (see Photos 4 and 5). The concentration of WAD Cyanide in the spill area calculated using <br />conservative values and parameters (i.e., values that would yield the highest probable concentration under the <br />field conditions), and determined to be less than the EPA reportable limit of 10 lbs /ton. The apparent source of <br />the pregnant solution is a 15 -inch diameter perforated ADS pipe designed to collect infiltrating water on the <br />VLF and convey it to the PSSA. This pipe was observed to be surcharged with water discharging from the pipe <br />perforations (see Photo 6). It should be noted that the water shown exiting the perforated pipe in Photo 6 is <br />meteoric water (not process solution) originating from a snow storm that occurred April 12 — 13, 2012 <br />amounting to the equivalent of 0.6 inches of water. The process solution spill is cited as Problem 2 on pages 1 <br />and 2 of this inspection report. A water bar has been constructed on the perimeter road to limit snowmelt run - <br />on. <br />The Division did not inspect the high and low volume solution collection system transducers or record water <br />level values during this inspection. <br />Page 3 of 7 <br />