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ASSUMPTIONS <br />• CRIPPLE CREEK ~ VICTOR (CC&V) GOLD MINING COMPANY MINE LIFE EXTENSION <br />2008 RECLAMATION COST ESTIMATE <br />1 Drawings & Autocad files of facilities were provided by CC&V staff to Ellis Environmental Engineering, Inc. <br />for use in calculating acreages, plotting haul routes, and measuring perimeters for purposes of the cost <br />estimate. It is assumed these maps and drawings are correct. The accuracy of the reclamation cost <br />estimate is no better than the accuracy of the maps. <br />2 For the Division of Reclamation Mining and Safety (DRMS) cost estimate, Rule 6 section 6.34(2) requires <br />costing for reclamation at the point of maximum disturbance. It has therefore been assumed for this <br />exercise that final build-out of the pits, valley leach facility, and overburden storage areas will be the <br />point of maximum disturbance. The reclamation and closure costs are based on these areas. <br />3 No salvage value for equipment, buildings, or tanks has been figured into the reclamation cost model. <br />Recent experience at Climax Mine in Colorado by Ellis Environmental Engineering (EEE) indicates that <br />on large scale reclamation projects, building demolition can be paid for by the scrap metals recycled. <br />4 For the present cost estimate, backfill grading (2H to 1 V) has been shown for most areas of the <br />Main Cresson Pit. It is assumed the South Cresson Pit will be left open after mining. Fencing will be <br />used to prevent unauthorized entry into open pits following closure. <br />It has been assumed that other pits (East Cresson Altman, Wildhorse and Wildhorse Extension) will be <br />backfllled, and reclamation will consist of light grading to blend with the topography, growth medium <br />replacement to a depth of 6 inches, and revegetation. <br />5 The Schist Island Pit of the North Cresson and the western portion of the Globe Hill Pit in North Cresson <br />• will be treated as follows: light grading to blend with the topography, growth medium replacement to a <br />depth of 6 inches, and revegetation. <br />6 Trees will be planted on reclaimed slopes that are east ornorth-facing in aspect. <br />7 It has been assumed that no liming will be required to enhance the revegetation success, except as . <br />shown for ECOSA. <br />8 The present model assumes there will be no off-load storage of leach materials as in other cost estimates. <br />9 The cost for chemical closure of the VLF was provided by others and EEE simply incorporated it into the <br />current model. De-nitrification of the spent ore is not covered as in previous cost estimates. <br />10 It has been assumed that costs for equipment, provided by sources such as Wagner Equipment's <br />posted rental rates on the web and Means 2008 Heavy Construction Cost Data, are accurate and <br />applicable to this project. Some costs were taken from previous CC&V reclamation cost models and <br />simply inflated to 2008 dollars. A few minor costs were estimated by EEE. <br />11 Equipment selection to achieve the work outlined in this estimate and the productivity of this equipment <br />are based on EEE's 35+ years of experience in mine reclamation. Productivities were verifed using such <br />sources as the 36th Edition of the Caterpillar Pertormance Handbook or time studies of real-life projects <br />in the files of EEE. <br />12 Other facility-specific assumptions are listed on the various worksheets. <br />MDE (4-2-OS) <br />Rev (4-4-08) <br />