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OBSERVATIONS <br />PERMIT #: M -1980 -244 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: February 8, 2013 <br />The Division conducted a monitoring inspection of the site on February 8, 2013. Mr. Timm Comer & Mr. Mark Vanoni <br />(CC &V) were present for a pre- inspection meeting. Mr. Vanoni was present during the inspection. The primary focus of <br />this inspection was to observe new construction activities associated with AM -10, and monitor solution levels. <br />Pre - Inspection Overview: <br />Mr. Comer indicated the following activities are in progress: <br />• The concrete pad had been poured and is functioning for the Squaw Gulch VLF construction traffic crossing <br />Highway 67. <br />• A BMP pond is in place on the downstream end of the construction are in Squaw Gulch. <br />• Grassy Valley sediment pond construction has begun. <br />• CC &V has received the air quality permit for the new mill from CDPHE. <br />• A new entrance is planned in the vicinity of the Ironclad facility to facilitate unimpeded and safe access for the <br />new mill construction. <br />Mr. Vanoni outlined the plan for recertifying the liner in the vicinity of the Phase V DCF slough. The anticipated <br />schedule is to have the liner recertified in the fourth quarter of 2013. CC &V will submit a formal plan to the Division for <br />review and approval prior to implementing recertification. <br />Inspection: <br />Mr. Vanoni pointed out progress being made in the construction (see Photo 1) of Cameron Pond (for sediment control) in <br />Grassy Valley associated with the planned East Cresson Overburden Storage Area (ECOSA). Salvaged topsoil is also <br />being stockpiled in Grassy Valley (see Photo 2) as clearing and grubbing continues. <br />The new platform material placement is complete (see Photos 3 and 4). Clearing and grubbing for the Squaw Gulch <br />Valley Leach Facility (SGVLF) is proceeding (see Photo 5). Mr. Vanoni pointed out the ridge where the newly approved <br />Growth Medium Noise Berm Extension will be placed (see Photo 6). <br />The Phase V DCF slough area was observed from the completed access ramp (see Photo 7). Material along the edges of <br />the slough area near the top, continue to move. This is not a concern as this material will need to be removed prior to <br />recertification. <br />The mine has placed the overflow from the Phase V low volume solution collection pumpback system into a completely <br />closed system now (see Photos 8 and 9). <br />Records Review: <br />The Division performed an audit of the stipulations and commitments associated with the Cresson Project peiiiiit. <br />Attachment B presents a summary of the 30 commitments and 10 stipulations that are still active. It should be noted that <br />commitments are actions the mine has agreed to complete as part of operations or reclamation. Stipulations are conditions <br />set by the Division and agreed to by the mine as part of the approval process for revisions to the permit. Please review <br />these items for your continued familiarity. If, after reviewing these 40 items, you believe CC &V has met the conditions <br />of any stipulation and/or commitment, please contact Tim Cazier and provide the Division with the necessary <br />documentation. <br />The inspection continued as the Division visited each of the high and low solution collection system transducers and <br />recorded water level values. The recording sheet is included as Attachment A, and the values are summarized below in <br />the Transducer Readings. <br />The Arequa Gulch underdrains were inspected. The South Underdrain discharge was measured to be 0.88 gpm. Both the <br />North Underdrain and the AG /Spring were dry. Both the A35 pumpback and B63 pumpback lines were dry. No flow was <br />observed in the Arequa Gulch flume (AG 1.5- OO1A). <br />Page 2 of 8 <br />