2008-04-15_REVISION - M1980244 (329)

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• Discuss the basis for this Finding/Deficiencies Identified: This requirement is not applicable; CC&V employs heap leach extraction methods exclusively, and does not generate mill tailings. 4.3 Implement a comprehensive water management program to protect against unintentional releases. The operation is: ^ in full compliance ^ in substantial compliance CC&V has developed a comprehensive water balance using a probabilistic model that has been approved by the State of Colorado DRMS and adapted for site conditions. The model considers: metered flow data, in-heap storage (heap and ponds), evaporation, precipitation, ore moisture content, storm events, potential power outages, and other parameters. CC&V staff have refined the model to track and predict the following parameters on a daily basis: Discuss the basis for the Finding/Deficiencies Identified: • water into the system from ore moisture, precipitation, pumpback from the VLF underdrain system, external storage pond, plant outflows, and fresh water addition; and • • water out of the system from evaporation; VLF areas under leach; water required to saturate ore; required makeup water (internal pond variance), and excess (deficit) of optimum operating requirement. ^ not in compliance ...with Standard of Practice 4.2. ^ not in compliance ...with Standard of Practice 4.3. Water supply (about 2 cfs) is purchased from the City of Victor. Cost and supply constraints necessitate a very conscientious and thorough water management approach. An additiona1100 gpm can be purchased from the City of Cripple Creek if so required. A maximum of about 1100 gpm is available for the operation; however, average consumption is typically <500gpm. No solutions are discharged to surface waters. The nearest perennial surface water (Cripple Creek) is about 2 miles from the operation. Arequa Gulch (downgradient from Cresson Proiect Name of Mine --`'~~~ ~ Signature of Lead Auditor 10 September 2007 Date Page 13 of 41