2008-04-15_REVISION - M1980244 (337)

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• L • 1.0 INTRODUCTION 1.1 Background This document is being submitted by Cripple Creek & Victor Gold Mining Company ("CC&V") as an application for a revision to the existing Mined Land Reclamation Permit M-1980-244 for the Cresson Project, known as the Mine Life Extension ("MLE"). The last significant permitting activity by CC&V for the Cresson Project was Amendment No. 8. The Mined Land Reclamation Board ("MLRB") approved Amendment No. 8 on August 23, 2000. This application is to address an approximate four year extension for mining at the Cresson Project, from approximately 2012 to about 2016. The MLE involves additional mining of ore and overburden at a yearly rate consistent with the Amendment No. 8 approval, additional backfilling and overburden placement, addition of a Phase 5 to the existing Valley Leach Facility ("VLF"), and subsequent reclamation of the extended project. The affected acreage of the proposed MLE is the same as the affected acreage approved and permitted by the MLRB for Amendment No. 8. There is no significant change to the approved reclamation plan and there is no significant change to the Environmental Protection Plan ("EPP"). CC&V is requesting that the Office of Mined Land Reclamation ("OMLR") determine the appropriate processing mechanism for this application. CC&V is submitting the appropriate information and fees as required by the permit amendment process. A total of 4,184 acres of affected area was approved by the MLRB for the Cresson Project in Amendment No. 8. This affected area is contained within a permit boundary encompassing 5,847 acres. For the MLE the perimeter permit boundary remains much the same as approved in Amendment No. 8 and subsequent revisions, with some minor adjustments to the northern boundary in the Grassy Valley area. Some inholdings have been acquired and a new inholding identified. The changes have resulted in a total permit area of 5,847 which is the same acreage as the Amendment No. 8 permit area (note that these acreages do not include the 15.4 acre area of the Carlton Tunnel which is also part of permit M-1990-244.) Financial warranty for areas affected to date under Amendment No. 8 and associated Technical Revisions has been posted with the OMLR in the amount of $44,713,931. This financial warranty is provided as surety for reclamation of major project facilities (e.g., overburden storage areas, crusher, VLF, process facilities, maintenance facilities, etc:) and for reclamation of affected acreage for activities ancillary to major project facilities. The proposed MLE will change the category of some of the Cripple Creek & Victor Gold Mining Company Cresson Project Mine Life Extension 1-1