2008-04-15_REVISION - M1980244 (329)

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• 5. DECOMMISSIONING Protect communities and the environment from cyanide through development and implementation of decommissioning plans for cyanide facilities. Standards of Practice 5.1 Plan and implement procedures for effective decommissioning of cyanide facilities to protect human health, wildlife and livestock. The operation is: ^ in full compliance ^ in substantial compliance Several sections of the Project Description section of the governing permit document address specific decommissioning and reclamation procedures that will be applied to the VLF, ADR, and other cyanide-related infrastructure. Although written as part of the permit application, the level of detail is sufficient to guide decommissioning activities and could form the basis of appropriate SOPS when mine life reaches that phase. Describe the basis for the Finding/Deficiencies Identified: • .7 ^ not incompliance ...with Standard of 5.1. An implementation sequence for cyanide facility decommissioning is also implied in the permit application; an actual schedule is included in a separate internal estimate. Although the decommissioning scope in the internal estimate is narrower in some respects from the scope implied in the permit, it is understood that when the decommissioning phase is reached, the internal estimate, schedule and budget will need to be reconciled with the bonded scope represented in the permit. It should be noted that VLF flushing will be managed as an operational cost as long as gold recovery offsets the operational costs of the ADR. It should also be noted that appropriate decommissioning procedures are reviewed and updated as part of formal VLF-related Technical Revisions (TRs) or Amendments prepared and submitted to the Office of Mined Lands Reclamation (OMLR); these are the approval mechanisms by which CC&V negotiates project changes and modifications. Cresson Project Name of Mine ~~~~ ~ ,.~-'' Signature of Lead Auditor 10 September 2007 Date Page 24 of 41