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Bad Boy~f Cripple Creek Mining C~ipany, Inc. Limited Impact 110 Operations Permit Application Exhibits A- L Prepared by Carlton E. Gerity P.E Pioneer Engineering 6505 So. Allison St. Littleton CO 80123 (303)979-2353 Bad Boys of Cripple Creek Mining Company, Inc. proposes to open a shallow open pit mine with limited production, for the purpose of mining high quality Turquoise gem material from its properties on Mineral Hill just north of Cripple Creek, Colorado. The Cripple Creek and Victor Gold Ivlining District produced over 20 million ounces of gold and two million ounces of silver since its discovery in 1891. Nearly all of the mining activity took place south of Cripple Creek. However minor gold occurrences of a similar type were found on Mineral Hill and it is considered part of the District. A large number of prospects pits and shafts are located on Mineral Hill and were probably the reason that the turquoise deposits were found during modern times, Turquoise production was reported from the District as early as 1894. Mineral Hill is unique in the District for its deposits of free gold and turquoise. Literature on turquoise clearly recognizes that the Cripple Creek area is an important producer of gem quality material. The total area impacted by mining on this permit will be less than one acre, much of the area is required to store mined material until it can be backfilled. There may be some gold production that would be incidental as part of the turquoise matrix, however no gold processing will take place at the site or any other location. Production rates are anticipated to be on the order of an average of one ton per day. TURQUOISE Turquoise is a gemstone that has been valued by mankind since antiquity. Chemically it is a hydrous basic aluminum phosphate plus copper and ferric iron. Cu(A1,Fe)6(P04)4(OH)8 4H2O Prized stones are fairly hard, with a hardness of just under six on the Moh's scale, a mineralogical standard, which means that it will scratch glass and in turn will be scratched by quartz. Less quality material can be much softer. Color is generally the "essence" of turquoise which ranges from a sky blue to green. The matrix of turquoise is vein matter of the enclosing rocks that is intermingled and generally cannot be separated. It can be stained by iron oxides into different colors and can include quartz. Matrix material often can establish the fact that the stones are genuine or natural. The production from the Bad Boys pit may include some gold in the matrix. The turquoise mined historically from the permit area and adjacent areas, is hard, and of good color and has a "high dollar density."