2014-06-26_PERMIT FILE - M2014027 (2)

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EXHIBIT C MINING PLAN EXISTING CONDITIONS Numerous prospect pits, surface disturbances, and an inactive open pit already exist at Crystal Hill. In addition to the pre-existing open pit that was started in the 1940's and last mined in the 1980's, other previously disturbed areas include about 40 acres of reclaimed waste dumps, heap leach pads, supporting operation areas, and about two miles of access roads. No pre- existing structures exist on or near the mine site. The historic open pit at Crystal Hill has the form of a steep-sided, flat-floored amphitheater, facing west and carved into the southwest side of Crystal Hill. The open pit is topographically closed and is approximately 600 feet by 600 feet in size. Road access to the Crystal Hill site is from the town of La Garita, via eight miles of graded road along Biedell Creek, or alternately via 13 miles of graded road along Sanderson Gulch. These roads connect around the north side of Crystal Hill, and both are periodically maintained by Saguache County. No utilities, communications facilities, gas, oil or water lines nor any dwellings are present on or near the property. Current land use in the area not related to prospecting and mining appears to be limited to livestock grazing, seasonal hunting (mostly deer and elk), woodcutting, National Forest access, and infrequent rockhound activities at Crystal Hill itself. Exploration by Colorado Mining and Exploration Colorado Mining and Exploration leased the Crystal Hill Mine property in 2012. A Notice of Intent to Conduct Prospecting, NOI number P-2012-010, was issued on June 29, 2012. The NOI allows the taking of bulk samples from the existing open pit by trenching. The bulk samples were analyzed at an off-site facility. Owing to successful metals recovery of the bulk samples for gold and silver an expansion of operations is now feasible. Accordingly, this application is being submitted for a 110(2) Limited Impact Operation Permit, impacting less than 10 acres, no acid mine drainage, with mining to occur less than 180 days per year. Development of Mining Operations Current plans for mining at Crystal Hill include less than 180 days of annual excavation by open pit methods within the existing open pit, crushing and screening of the excavated rock, and transporting the fine screened material to an off-site mill for recovery of gold and silver.