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colder Assodotes Inc. <br />44 Unlon Boulevortl. Sulte 300 <br />Lakewood. CO USA 80228 <br />Telephone (303) 980-OSdO <br />Fox (303) C85-2080 <br />November 9, 2006 <br />Cripple Creek & Victor Gold Mining Company <br />100 N. 3rd Street <br />Victor, Colorado 80860 <br />Attention: Mr. Gary Goodrich, Manager. Environmental Resources <br />ABSOC1c11ES <br />Our Ref: 063-2269 <br />RE: PHASE IVC 2006 VLF SOLUTION COLLECTION MODIFICATIONS <br />Deaz Gary: <br />Golder Associates Inc. (Golder) has prepared this letter report for the Cripple Creek & Victor Gold <br />Mining Company (CC&V) to document enhancements to the solution collection piping system for <br />Phase IVc of the Valley Leach Facility (VLF) that occurred in 2006. The modifications to the <br />Phase IVc solution collection system design that were conducted in July, 2006 were a continuation of <br />enhancements that were conducted in 2005 to augment solution drainage from the pad along the <br />northwestern edge of the VLF, <br />Background <br />CC&V installed additional perforated corrugated polyethylene (PCPE) solution collection pipes along <br />the northwestern perimeter of Phase IVc of the VLF in October and December of 2005 to augment <br />solution drainage from the pad along the northwestern edge of the VLF. This work generally <br />involved the installation of perforated corrugated polyethylene (PCPE) pipe along the northwestern <br />edge of the VLF. This pipe was added in two sections along the toe of the ore heap where surface <br />saturation of the Drain Cover Fill (DCF) and minor pooling of leach solutions was observed during <br />first wetting of the ore. Two sections of the 6-inch diameter PCPE pipe, approximately 375 feet in <br />length, were added along the toe of the ore to help route leach solutions along the pad edge into the <br />existing solution collection piping network. The 6-inch PCPE pipe was added by cazefully trenching <br />(hand-excavating the lower 6 inches) into the DCF, placing the pipe into the trench at the primary <br />liner, and backfilling the trench with DCF. Two 4-inch tertiary solution collection pipelines were also <br />extended approximately 125 feet each to augment drainage along the northwestern edge of Phase IVc <br />to intercept and transport flows away from the azeas where saturation was observed. The tertiary <br />solution collection pipelines were extended by carefully trenching (hand-excavating the lower <br />6 inches) into the DCF, adding extensions to the existing 4-inch tertiary solution collection pipes, and <br />backfilling with DCF. Golder inspected the area during and after installation of the PCPE pipes, <br />approved the installation, and documented the work in a January 16, 2006 dated letter. The locations <br />of the PCPE collection pipes that were extended in 2005 are shown on Figure 1. <br />OFFICES ACROSS AFRICA, ASIA, AUSTRALIA, EUROPE, NORTH AMERICA AND SOUTH AMERICA <br />