2012-09-13_INSPECTION - C1981008 (3)

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September 11, 2012 C- 1981- 008/New Horizon Mine JLE Pond 12 was dry and not discharging. The south east inlet was rock lined and according to Mr. Gubka they had recently regraded this area to repair erosion that had formed there. This area appeared graded and stabilized. Several tamarisk trees were observed in the pond area. Pond 15 was dry and the embankments were stable. Pond 13 was holding water and discharging. The primary- spillway was clear of debris. The Operator is pumping water from the adjacent stream into the pond. According to Mr. Gubka, this steam is not over - allocated and can be utilized for this activity. While inspecting the mine area on the Morgan property, water was observed flowing from the blasting buffer zone at the south end of the Morgan property toward the open pit. Mr. Gubka and I followed the water along the southern permit boundary to where the water is entering the mine area. It appears the water is overflowing from the Morgan's field south of the permit boundary. The Morgan's were irrigating the field at the time of the inspection and the water is running off their field into the pen boundary. The Division mapped the location of the discharge point and the approximate inlet point with a Yuma GPS unit. A map of the Division's findings is enclosed with this report. Mr. Gubka contact Mr. Mike Morgan and discussed the issue with him and Mr. Morgan indicated he would investigate the problem. GENERAL MINE PLAN COMPLANCE: The mine operation was shut down for equipment maintenance at the time of the inspection. REVEGETATION — Rule 4.15, Vegetative Cover; Timing: The IP reference area was walked. According to Mr. Gubka, the grass had been cut on Sunday September 9th. The area is still being irrigated. The IP reclaimed land east of 2700 road was actively being irrigated at the time of the inspection. TOPSOIL — Rule 4.06 Removal 4.06.2, Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; Redistribution 4.06.4: It appears the Operator removed the remaining topsoil on the west end of the Morgan property in the required two lifts. Many topsoil piles were observed during the inspection. The piles appeared stable and a berm was in place at the base of the piles. Enclosure: 1.) 11 Sep 2012 Inspection Map Number of Partial Inspection this Fiscal Year: 2 Number of Complete Inspections this Fiscal Year: 1 Page 3 of 5