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Burns Figa&Will 2 <br /> September 5,2023 <br /> Step 2: Cyanide Handling <br /> CJK acknowledges the hazards related to CN as well as other chemicals. The handling and use <br /> of these chemicals are common in mining operations, and its safe use to the environment and <br /> human safety is highly regulated by State (Colorado Department of Reclamation Mining and <br /> Safety-CDRMS, Colorado Department of Health and the Environment-CDPHE)as well as federal <br /> (Mining Health and safety Administration-MSHA). Cyanide will be destroyed, and metals of <br /> concern will be treated using the lime used in the milling process. CJK is required by law to <br /> comply with regulations associated with the handling and use of hazardous materials and will use <br /> these industry-proven methods. <br /> The cyanide management plan is highly regulated by CDRMS and must be approved before <br /> operations can commence. Updated cyanide and emergency management plans will be included <br /> in the revised permit application which will be completed by the end of February, 2024. <br /> Step 3: Cyanide Destruction <br /> Most of the CN used in the process is reclaimed and re-used. However, the CN that cannot be <br /> reclaimed will be destroyed using ferric sulfite prior to disposal in the Filtered Tailings Deposit <br /> (FTD). The cyanide detoxification process is an industry-proven method. CN concentration in <br /> the FTD will be at a safe level. <br /> Step 4: Filtered Tailings Disposal <br /> Detoxified tailings will be filtered to remove most of the water. The filtered material, moist like <br /> beach sand, will be stacked and compacted on a shallow slope. This design is stable. Further, <br /> since the material is not liquid, as contained in a conventional tailings facility, it will not travel more <br /> than a few feet in the unlikely event a portion of the facility experiences a slump. <br /> The FTD design is prescriptive and must be approved by CDRMS before operations can <br /> commence. <br /> Step 5: Containment Sump <br /> The Leadville Mill is designed as a zero-discharge facility. The entire facility is designed to be <br /> within a series of primary sumps to capture and contain leaks should they occur. In the unlikely <br /> event the primary sumps are overwhelmed by a spill, the liquids will flow directly into the <br /> secondary containment sump. <br /> The facility design allows all liquids to report to the primary and secondary sumps via gravity flow, <br /> so there is no risk of spillage caused by pump failure. <br /> The Primary sumps are lined to contained liquids. The secondary sump is doubled lined and also <br /> has leak detection and leak capture should the primary liner fail. <br /> In the event that liquids report to the secondary sump, milling operations will stop and the <br /> detoxification system will be used to immediately detoxify the water. Therefore, there will be no <br /> long-term sump containment of cyanide water. <br /> Step 6: Dust Control <br /> Dump material is generally damp. Nevertheless, the material surface will often be dry and dust <br /> control measures as required will be implemented. Roads will also become dusty. Roads will be <br /> sprayed with dust surfactants and water. Trucks will be covered during transportation. Material <br /> will be sprayed with water prior to loading in the crusher bin. The crusher facility will be an <br /> enclosed building with negative air pressure created by a dust collector. The material will be wet <br /> from the time it is introduced in the ball mill until it is deposited on the FTD. Water sprays as well <br /> as contemporaneous reclamation of the FTD will control dust from the tailings. <br />