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• <br />• <br /> <br />June 24, 2003 -1- <br />1.0 INTRODUCTION <br />003-2203.7 <br />The Cripple Creek & Victor Gold Mining Company (CC&V) currently operates the Cresson Project, <br />located in Teller County, Colorado, near the city of Victor on Colorado State Highway 67. CC&V is <br />a joint venture formed by Golden Cycle Gold Corporation and Anglogold (Colorado) Corp. <br />(Anglogold), with Anglogold the managing partner The Cresson Project is a mining and ore <br />processing facility which is comprised of surface mines, crushers, a lined Valley Leach Facility <br />(VLF), gold recovery plant, and associated infrastructure, all of which were designed and constructed <br />to meet or exceed the requirements established by C.R.S. §34-32-101 et seq. and regulations <br />promulgated there under by the Mined Land Reclamation Board (NLRB). The work associated with <br />the Cresson Project is being performed under specific criteria established in Amendment No. 8 of <br />Permit Number M-1980-244 (Permit), as approved by the NLRB. This Report documents the <br />Construction Quality Assurance (CQA) and Construction Quality Control (CQC) services provided <br />by Golder Associates Inc. (Golder) from February 2001 through June 2003 for the Phase Nb <br />Pregnant Solution Storage Area (PSSA), which is defined in Section 1.6. The certification report for <br />the Phase Nb Ore Storage Area (OSA) will be presented under separate cover. The general site plan <br />is presented in Figure 1, and the certification boundary is presented in Figure 2. <br />1.1 Project Description <br />The initial Cresson Project was designed in 1993 and constructed in phases since 1994 under <br />Amendment Nos. 6, 7, and 8 to Mining Permit M-1980-244. This certification report addresses the <br />addition of approximately 1,027,290 square feet plan area (1,077,810 square feet, neat tine) of the <br />earthen and synthetically-lined PSSA that is generally north of Phase III. This area is referred to as <br />the Phase Nb PSSA and was designed to meet the criteria presented in Amendment No. 8. <br />Ames Construction Inc. (Ames) of Aurora, Colorado was the earthworks contractor for the Phase Nb <br />PSSA. Ames performed construction activities for the Project from February 2001 through <br />June 2003, except for a brief shutdown during the month of March 2003. Poly-Flex Inc. (Poly-Flex) <br />of Grand Prairie, Texas manufactured and installed the geomembrane used to construct the PSSA. <br />Poly-Flex was onsite to install geomembrane August through November 2002, and April through <br />May 2003. Messrs. Ron Roberts, Terry Mandziak, and Jim Smith represented CC&V as the <br />Construction Managers during the course of the work. All quantities and testing frequencies <br />1:\W\3iQl\OJOOU+nICerIP$$A0603\OWE203AJ00.011JlRep.doc Golder Associates <br />