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May 30, 2012 C- 1981 - 018 /Deserado Mine DTM <br />Pond DP -1 <br />Sedimentation Pond RP -2/3 held little water in the two upper cells. No water was being contained in the larger <br />down slope cell. All embankments were well vegetated with no erosion or signs of stability issues. Primary <br />discharge point was clear of all obstructions and in compliance. All emergency spillways for Pond RP -2/3 were <br />well armored with rip rap and stable. <br />Sedimentation Ponds RP -4 and RP -5a were dry at the time of inspection. All embankments were vegetated. <br />Primary discharge points were visible and clear of any obstructions. Emergency spillways were lined with rip rap <br />and stable. A large linear crack was observed in the ground just north of Pond RP -4. Scott Wanstedt believes it has <br />formed due to differential compaction between the undisturbed ground and the pond embankments. The crack <br />does not appear to reach the embankments or cause any stability issues regarding to Pond RP -4. Future inspections <br />will be needed to ensure additional cracking or stability issues do not occur. <br />Pond RP -4. <br />Sedimentation Ponds SS -1, SS -2 and RR -1 were dry at the time of the inspection. All embankments were well <br />vegetated with no erosion or signs of stability issues. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 6 <br />