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Cripple Creek&Victor Gold Mine <br /> Valley Leach Facility 2 Phase 3 ■ <br /> Detailed Design for Permitting,Revision 1 <br /> NewFields Project No.475.0106.033 <br /> July 2020 <br /> 1. INTRODUCTION <br /> Cripple Creek & Victor Gold Mining Company (CC&V) operates the Cresson Project located in <br /> Teller County, Colorado, near the cities of Cripple Creek and Victor. The Cresson Project is a <br /> mining and ore beneficiation facility that is composed of surface mines as well as Valley Leach <br /> Facilities (VLFs), two absorption, desorption, and recovery (ADR) plants, and associated <br /> infrastructure; all of which were designed to meet or exceed the requirements established by <br /> C.R.S. §34 32-101 et seq. and regulations promulgated there under the Mined Land Reclamation <br /> Board (MLRB). <br /> The existing VLFs, Arequa Gulch VLF (VLF1) and Squaw Gulch VLF (VLF2) have been constructed <br /> in phases. The initial construction of VLF2 started in 2012 and is currently expected to be <br /> completed in the fall 2020. CC&V is proposing to expand the footprint of VLF2 to accommodate <br /> additional ore reserves being identified within the mine area. This revised report presents the <br /> design for the Phase 3 Expansion, which will expand the footprint of VLF2 to the north, into the <br /> proposed Schist Island Pit and east against the Squaw Gulch Overburden Storage Area (SGOSA). <br /> 1.1. Project Description <br /> VLF2 Phase 3 is the proposed expansion of the existing VLF2. The proposed footprint of the <br /> expansion will add approximately 8 million square feet of lined area to the north and east of the <br /> existing permitted facility. With the proposed expansion, the total capacity of Phase 3 will <br /> increase the ore capacity by 118 million tons to a total capacity of 322 million tons assuming an <br /> average ore density of 110 Ib/ft3. Currently,three types of materials are placed in VLF2 with haul <br /> trucks for subsequent leaching: <br /> ;o. Crushed ore, that has been through a primary and secondary crushing operations to reduce <br /> the nominal size of the material to%-inch or less(%-inch minus); <br /> > Run-of-Mine ore (ROM), material that has not been through the crusher; and <br /> Rough Tailings, material coming from the mill. <br /> The general design of the VLF2 Phase 3 expansion comprises of a lined pad and a dedicated <br /> internal Pregnant Solution Storage Area (PSSA). Sections of lined pad area and the PSSA will be <br /> brought up to grade by backfilling portions of Schist Island Pit with compacted Overburden and <br /> Structural Fill. The remainder of the lined pad area grading is accomplished by laying back the <br /> west side of the SGOSA and reshaping the flat area between SGOSA and VLF2 to drain towards <br /> the Phase 3 PSSA. <br /> Phase 3 will be constructed in three stages utilizing mining equipment in the backfilling of the pit <br /> and construction contractors for the remainder of the expansion: <br /> Page 1 <br />