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November 14, 2012 C-2010-089/New Horizon North Mine JLE <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> R -Air Resource Protection NA -Roads <br /> N -Availability of Records NA -Reclamation Success <br /> NA -Backfill &Grading NA -Revegetation <br /> NA -Excess Spoil and Dev.Waste NA - Subsidence <br /> N -Explosives Y - Slides and Other Damage <br /> Y -Fish &Wildlife Y - Support Facilities On-site <br /> R -Hydrologic Balance Y - Signs and Markers <br /> Y -Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br /> N -Other NA - Special Categories Of Mining <br /> NA -Processing Waste R -Topsoil <br /> COMMENTS <br /> This was a partial inspection of the New Horizon North Mine; DRMS file No. C-2010-089. This site is located in the <br /> town of Nucla, Colorado. I, Jared Ebert of the Colorado Division of Reclamation,Mining and Safety conducted the <br /> inspection. Mr. Ross Gubka with Western Fuels accompanied me on the inspection. The weather was clear and <br /> warm. <br /> AIR RESOURCE PROTECTION—Rule 4.17: <br /> The wind was calm during the inspection, dust did not appear to be an issue. <br /> HYDROLOGIC BALANCE -Rule 4.05; Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; <br /> Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br /> Surface Water Monitoring 4.05.13; Drainage —Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; <br /> Stream Buffer Zones 4.05.18: <br /> Pond 001 was in the process of being constructed. A skid steer was working on the emergency spillway. The <br /> primary spillway was also under construction. Mr. David Anderson with Western Fuels was on site overseeing the <br /> construction of the pond and the east and west ditches. According to Mr. Anderson,the pond and drainages should <br /> be completed before thanksgiving (November 22, 2012). At the time of the inspection,the pond should have been <br /> excavated to its final level. <br /> Ditches NHN-001 West and East have been excavated and shaped. Steep portions of the ditch have been lined with <br /> erosion control matting. What appears to be hard plastic netting has been tacked to the lining. This netting serves to <br /> hold small diameter rocks in place. During the inspection rocks were being placed in the upper reaches of the east <br /> ditch. <br /> TOPSOIL—Rule 4.06; Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; Redistribution <br /> 4.06.4: <br /> Number of Partial Inspection this Fiscal Year: 6 <br /> Number of Complete Inspections this Fiscal Year: 1 <br /> Page 2 of 6 <br />