2016-04-08_REPORT - M1980244 - Laserfiche WebLink

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New disturbances anticipated during the upcoming year: Continued development of the Main Cresson (including South Cresson), East Cresson, and North Cresson mine areas (including backfilling in the ECME, and development of the WHEX area), development of the East Cresson Overburden Storage Area ("ECOSA"), development of the SGVLF and High Grade Mill, associated haul roads, sediment control measures, topsoil stockpiles, and other ancillary disturbances required to support these activities will continue in 2016. Reclamation anticipated during the upcoming year: 0 acres of miscellaneous sites consisting of topsoil stockpiles, sediment ponds, and exploration disturbances are planned to be reclaimed this year. Reclamation/Closure Liability and Financial Warranty: As agreed upon by the Division and CC&V, CC&V will provide an update to the Exhibit L (Amendment 10) reclamation cost data and additional "tabs" to address the reclamation costs associated with Technical Revisions approved by the Division after the approval of Amendment No. 10. CC&V agreed to provide the Division an update of Exhibit L as part of CC&V's Annual Report of the Cresson Project on a biannual basis. The first update was included in the Annual Report that was submitted on April 9, 2014 and subsequent updates, including this report, will be submitted to the Division every two years after that until both CC&V and the Division agree it is no longer needed for the Cresson Project. CC&V supplied an updated warranty estimate within the recent Amendment 11 submittal on December 16, 2015 and the amendment to the amendment on February 11, 2016. Per conversation with Tim Cazier this submittal is intended to meet the requirement for bi-annual warranty estimate. An update of the reclamation cost estimate for Cresson Project Amendment No. 10 was completed in early 2014. The 2014 updated estimated liability amount is calculated to be $192,355,520. Since the sale of CC&V from Anglo Gold Ashanti (AGA) to Newmont Cripple Creek Gold Company (Newmont) in August 2015 and discussions in October 2015 with the Division, it was jointly agreed that Newmont would post a financial warranty totaling $173,328,828 which is an increase of $36,962,820. This warranty would cover approximately 66% of the 2014 estimate and substantial portion of the Squaw Gulch Valley Leach Facility. Any surplus would be used for future Technical Revisions (TR's). On October 20, 2015 a formal request for Financial Warranty Replacements and Increase was submitted to the Division that proposed to increase the current warranty from $136,475,000 to $173,434,420 and also providing a surplus of $105,792 at that time for future TR's. The request was approved on October 28, 2015.