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Golder Associates Inc. <br />44 Union Boulevard, Suite 300 <br />Lakewood. CO USA 80228 <br />Telephone: (303 980-0540 <br />Fax: (303 985-20&7 <br />ww„v.golder.com <br />July 21, 2005 <br />Cripple Creek & V ictor Gold Mining Company <br />AngloGold Ashanti (Colorado) Corp. <br />100 N. 3'a Street -- <br />Victor. Colorado 80860 <br />Golder <br />~ASSOC~eS <br />Our Ref: 053-2399 <br />RECEIVED <br />AUG 0 1 2005 <br />Attention: Timm C. Comer. Chief Environmental Coordinator piVision ~f Mmerels and Geology <br />RE: SQUAW GULCH OVERBURDEN STORCA~G,(E~,AREA GEOTECHIYnICA'L~ANALYSgESp/~ <br />AND STABILITY REVIEW M - t l U~ - ~ ~ ~ l~ ~ ~ G+~-i' 1 <br />Dear Timm: ~L~ <br />Golder Associates Inc. (Golder) has prepared this letter report for the Cripple Creek & Victor Gold <br />Mining Company {CC&V) presenting the results of the 2005 geotechnical stability review conducted <br />for the Squaw Gulch Overburden Storage Area (SGOSA). The geotechnical analyses were conducted <br />by Golder as amid-project confirmation for the stability assumptions presented in the Amendment 8 <br />application and in response to the observed surface cracking and settlement along the SGOSA slope <br />and crest earlier this year. <br />The geotechnical analyses presented herein consists of the following components: <br />• -Data evaluation; <br />• Slope stability analysis; and <br />• Settlement analysis. <br />The stability review conducted was also based on observations made by Golder personnel during site <br />visits and site survey data and topographic maps of the SGOSA provided by CC&V. <br />EXCECUTIVE SUMMr~ItY <br />The results of the geotechnical stability review conducted for the SGOSA facility indicate that the <br />observed surface cracking and measured deformations are the result of normal and expected <br />settlement of the overburden materials, and are not due to global instability. The observed settlement <br />and cracking is considered normal for a facility of this size with fill thicknesses on the order of <br />400 feet. <br />OFFICES ACROSS AFRICA, ASIA, AUSTRALIA, EUROPE, NORTH AMERICA AND SOUTH AMERICA <br />