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E MONT <br />April 19, 2018 <br />Newmant Mining Corporation <br />Cripple Creek & Victor Gold Mine <br />100 North 3" Street P O Box 191 <br />T 719-689-4029 <br />F 719-689.3254 <br />www.nowmonl.com <br />SENT CERTIFIED, RETURN RECEIPT REQUESTED <br />Mr. Timothy Cazier, P.E. <br />Environmental Protection Specialist <br />Colorado Department of Natural Resources <br />Division of Reclamation, Mining and Safety <br />Office of Mined Land Reclamation <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RECEIVED <br />APR 2 3 2018 <br />DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />Re: Permit No. M-1980-244; Cripple Creek & Victor Gold Minine Company ("CC&V" ); Cresson Proiect <br />- Written notification — Liner Failure Identification— April 16, 2018 <br />Dear Mr. Cazier: <br />In accordance with Rule 8, Section 8.2.3 of the Mineral Rules And Regulations of the Colorado Mined Land <br />Reclamation Board For Hard Rock, Metal, And Designated Mining Operations (Rules), the Cripple Creek and <br />Victor Gold Mining Company (CC&V) hereby provides the Division of Reclamation, Mining and Safety (DRMS) <br />with a formal report regarding the liner tear resulting from the December 2017 slough of leach material between <br />the 9860' and 9650' elevations. <br />The following points address the requirements of Rule 8, section 8.2.3: <br />a. Actions taken to respond to and correct the situation or condition <br />• In December 2017, CC&V began excavation of the sloughed material; <br />• In March 2018, Newfields surveyed the excavated area to ascertain the area of highest <br />probability of potential damage to the liner; <br />• In April 2018, CC&V submitted Technical Revision (TR) #100 to DRMS outlining a plan <br />to determine the extent of damage (if found) to the liner; <br />• After submittal of the TR to DRMS, CC&V contracted Ames Construction to begin removal <br />of ore and drain cover fill down to two feet above the geomembrane in the slough area; <br />• Potholes were dug by trackhoe and by hand to expose liner in the area of concern; <br />• The potholes were dug on approximately 10 foot centers, 2 feet in diameter, and offset <br />alternately transverse to the slope; <br />• Upon exposure, several tears in the liner were discovered near the 9750' elevation; <br />• Further excavation down to two feet above liner is currently in progress in affected area; and <br />• Leach solution has not been applied to the area and CC&V has voluntarily committed to <br />cease leaching within 500 feet of the investigation area. <br />b. Any known or adverse impacts to human health, property or the environment <br />