2008-04-15_REVISION - M1980244 (351)

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• the Mined Land Reclamation Act and Rules and Regulations. The financial warranty estimate has been developed to support this approach or to support traditional life-of- mine bonding. 12.2 Project Financial Warranty Requirements In order to ensure that the site is reclaimed, CC&V will post an appropriate financial warranty. The amount of that warranty has been computed in accordance with the practices used in all previous financial warranty computations submitted by CC&V for the Cresson Project. Costs developed are in year 2008 dollars. The financial warranty calculations include those items requiring reclamation at the Cresson Project and the appropriate OMLR administration fees. The amount of the financial warranty currently held by OMLR will be increased to include the activities expected to be implemented for the first year after approval of the MLE Project. Thereafter, the financial warranty will be reviewed on a periodic basis and adjusted accordingly for the cost to reclaim lands to be affected in the coming period plus the cost to reclaim those lands affected in previous years and not yet fully reclaimed. Completed reclamation will be deducted from the amount included in previous years for that particular area. • Relevant costs have been included in the computations for all reclamation and closure activities associated with the MLE Project. The costs have been developed under the assumption that an independent contractor will perform the reclamation activities. The procedures followed and the assumptions used to develop the MLE financial warranty costs are discussed in the following sections. 12.3 Reclamation Earthmoving Costs The estimated reclamation costs have been developed on the basis of standard production rates for equipment normally utilized for reclamation work. The costs assume the work is completed by an independent contractor. For the reclamation of the Cresson Project, the following pieces of major equipment were used in cost development: ¦ Scrapers and Trucks: Scrapers and trucks were assumed to transport the growth medium and to do some of the grading and re-contouring work. For this cost estimate, Caterpillar (Cat) 623 (single engine) scrapers and trucks (Cat 773B and 777C) were used in determining the productivity rates of hauling suitable growth medium from stockpiles and in certain instances these machines were used for hauling spent ore (VLF) or overburden (OSAs) to achieve final contours. Cripple Creek & Victor Gold Mining Company Cresson Project Mine Life Extension 12-3