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-~ <br />SMITH WILLIAMS CONSULTANTS, INC. <br />Cripple Creek & Victor Gold Mining Company <br />Cresson Project <br />Valley Leach Facility <br />-Phase 5 Extension Design <br />Executive Summary <br />The Cripple Creek & Victor Gold Mining Company (CC&V) operates the Cresson Project <br />located west of the city of Victor in Teller County, Colorado. Phase I and Phase II of the <br />Cresson Project Valley Leach Facility (VLF) were designed in 1993 and, after obtaining all <br />necessary approvals, were constructed in phases during 1994 through 1996. In July 1998, <br />CC&V submitted a design for Phase III of the VLF. After obtaining all necessary approvals, <br />construction on Phase III began in 1999 and was completed in 2000. In March 2000, CC&V <br />submitted a design for Phase IV, which was appropriately approved. The construction of Phase <br />IV began in 2001 and was completed in 2004. CC&V is proposing to extend the existing VLF <br />further to the north and east, in an area referred to as Phase 5. <br />The Phase 5 VLF design includes the following elements: <br />^ Extending the VLF north and east to the remaining upper Arequa Gulch and lower <br />slopes of Squaw Mountain and the Arequa Gulch Overburden Storage Area <br />^ Construction of a dedicated Pregnant Solution Storage Area (PSSA) for the VLF <br />extension to fully contain the' Phase 5 solutions <br />^ Increasing the maximum ore height within the Phase I through IV VLF from 590 feet <br />(Amendment No. 8) to 800 feet. The maximum ore height for the Phase 5 VLF will <br />be 590 feet <br />The Phase 5 VLF area will consist of an additiona16.4 million square feet (surface area corrected <br />for slope) of lined area for ore storage and a new PSSA. Both the Phase 5 VLF ore storage area <br />and Phase 5 VLF PSSA will include the use of the same composite liner systems, similar to those <br />used for the previous VLF phases and approved Amendments. <br />Surface grading within the limits of Phase 5 VLF will be conducted in a manner that results in <br />foundation slopes of 2.SH:1 V or shallower, with the exception of localized areas along Squaw <br />Mountain where slopes of up to 2.OH:1 V will be constructed. The design has been developed <br />based on stacking ore up to 800 feet within Phase I through IV VLF and 590 feet within the <br />S:\PROJECTS\1125 CCSV PHASE 5 VLF\H2 - DESIGN\AREQUA VLF\VLF PHASE 5 FINAL REPORT V2.DOC 1 <br />