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CIK Milling Company,LLC <br /> Penn Mine l Lake County,Colorado <br /> No material will be processed onsite. Material will however be screened for non-mineralized (large size, <br /> +2 inch) development rock mixed with mineralized material as well as historic refuse. The surface deposit <br /> will be loaded onto haul trucks and sent approximately 6 miles to the Leadville Mill for processing. <br /> Large (+2-inch) rocks will remain on site and used to fill exploration holes on the property. See Figure 6- <br /> 7, Exhibit E Section 6.4. <br /> The Leadville Mill is permitted separately under permit M1990-057. <br /> 4.1.14 Secondary and Incidental <br /> 6.3.3(1)(n). Identify the primary,and if applicable,secondary and incidental commodities to be mined/extracted by <br /> the proposed operation;and if not to be used as construction material, describe the intended use. <br /> The deposits consist of a combination of veins, sills, stockworks, and porphyries. All are polymetallic <br /> deposits which contain copper, lead, zinc,gold and silver as well as deleterious materials. However, only <br /> gold and silver will be recovered at the Leadville Mill operation. <br /> 4.1.15 Explosives <br /> 6.3.3(1)(o). Specify if explosives will be used in conjunction with the mining orreclamation operation.In consultation <br /> with the Office the Applicant must demonstrate, pursuant to Rule 6.5(4) under the Geotechnical Stability Exhibit, <br /> that off-site areas will not be adversely affected by blasting during mining or reclamation operations. <br /> The deposits consist of weathered unconsolidated material. Therefore, no explosives are required. <br /> 4 . 2 TAILINGS POND <br /> 6.3.3(2)(a-d). if tailing ponds are part of the milling process, the mine plan description shouldaddress the <br /> f'ollovy ing: <br /> (a) Plant Facilities: Describe the chemical types and quantities to be utilized, chemical storage <br /> and spill containment and emergency response plans foron-site spills. Plant operation <br /> details should include tank capacities and operating solution volumes. <br /> (b) Tailings:Describe the geochemical constituents of the tailing or leached ore,the chemistry of <br /> any leachate,anticipated impacts to ground or surface waters and design details such as <br /> liners, ponds and embankments, diversions or chemical treatment facilities to be used to <br /> control these impacts, and ground and surface water monitoring systems,to include <br /> proposed groundwater points of compliance. <br /> (c) Drainage Control: Describe the measures used to divert upland drainage away from the site <br /> both during and after operation.This must include design details demonstrating the <br /> capacity of ditches and impoundment structures to contain operating solutions and the <br /> volume of water generated by a one hundred(100)year 24-hour rainfall event. <br /> (d) Maps and Plans: Design drawings must,at a minimum, describe specific design details for <br /> tailing ponds and embankments, ponds and ditches, ore and tail transport systems, and <br /> ground and surface water monitoring systems. <br /> There is no tailings pond or process facility at the Penn Mine. Tailings will be placed in the Leadville Mill <br /> (permit M1990-057) tailings pond. <br /> Initial Application / March 2021 4-8 <br />