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■■Ne Fief <br />0 Perspective. Vision. Solutions. <br />December 15, 2015 <br />NewFields Project 475.0106.001 <br />Cripple Creek & Victor Gold Mining Company <br />P.O. Box 191 <br />100 North P Street <br />Victor, Colorado 80860 <br />Attention: Chris Hanks <br />Chief Environmental Coordinator <br />RE: 2015 Annual Arequa Gulch Valley Leach Facility Inspection <br />Cripple Creek & Victor Gold Mining Company <br />Cresson Project <br />Vidor, Teller County, Colorado <br />Dear Chris, <br />NewFields Mining and Technical Services (NewFields) has prepared this letter report for Cripple <br />Creek & Victor Gold Mining Company (CC&V) presenting the results of the annual inspection of <br />the Arequa Gulch Valley Leach Facility (AG -VLF) conducted on October 22 and November 3, <br />2015 by Mssrs. R. Michael Smith and Jay Janney -Moore. <br />The primary objectives of the AG -VLF inspection included: <br />t Assess the settlements cracks that are being observed along an access road on the north <br />side of the pad, within the limits of Phase 4; <br />Assess the overall stability of the AG -VLF including the ore slopes, foundation, and internal <br />solution ponds; <br />D Verify the operation of the AG -VLF is in accordance with the project design criteria; and <br />Evaluate the AG -VLF underdrain flow and water quality with respect to AG -VLF containment <br />performance <br />This letter report presents observations made during the site inspection, data provided by <br />CC&V in support of the inspection program, and NewFields' conclusions based on the <br />inspection results. <br />1. SETTLEMENT CRACKS <br />NewFields was called to inspect some cracks that had developed in an access road on the north <br />side of the pad. The cracks started developing in October 2015, after a 100' high ore lift had <br />