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August 14, 2012 C- 1981- 008/New Horizon Mine <br />MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted <br />V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection R -Roads <br />N - Availability of Records <br />R - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />NA - Processing Waste <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 />N - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />An inspection of the New Horizon Mine was conducted by Marcia Talvitie and Sandy Brown of <br />the Division on Tuesday, August 14, 2012. This inspection was scheduled in accordance with <br />Section 3.03.2(2) of the Rules, in response to the operator's SL -13 bond release application. <br />Other aspects of the mine's operation, unrelated to SL -13, were inspected later in the day. The <br />inspection began at 9:00 a.m. at the mine office. Skies were overcast and temperatures remained <br />mild throughout the morning. <br />With SL -13, WFC has requested Phase I bond release for backfilling, regrading, and drainage <br />control for 100.16 acres located northwest of the intersection of 2700 Road and BB Road. The <br />surface of the Phase I area is owned by the Bud & Teresa Benson Family Living Trust (eastern <br />portion) and by WFC (western portion). The WFC portion was originally owned by the Lloyd <br />family; WFC purchased the property in December 2011. Bud Benson participated in the Phase I <br />portion of the inspection. <br />The area for which Phase I release has been requested is bounded by 2700 Road to the east and <br />the future alignment of BB Road to the south (currently in use as the mine's haul road). Tuttle <br />Draw lies to the north of the Phase I area, and westward are the continuing mining and <br />reclamation operations of the New Horizon Mine. The Phase I area is shown in Photo 1, an <br />aerial photograph taken on July 25, 2012. <br />SL -13 also requests Phase III (final) bond release for reconstructed portions of 2700 Road and <br />BB Road (a total of 7.22 acres). Montrose County Road & Bridge was notified of the inspection, <br />but did not attend. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall <br />Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />• The Phase I bond release area was backfilled from east to west between 2005 and 2009. The <br />post- mining topography consists of a smooth, elevated surface which slopes gradually (at 1 % <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 Page 2 of 9 <br />