2008-04-15_REVISION - M1980244 (351)

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• 12.4 Calculation of Production Rates for Equipment Using the volumes and areas computed for the various facilities to accomplish reclamation, production rates (aka "productivities") for the selected equipment were developed in the spreadsheets, taking into account such factors as characteristics of materials handled (i.e., loose, hard, wet, dense, etc.), haul distance, grade resistance, operator efficiency, equipment utilization rate, capacity of loader buckets and truck beds, etc. There were several references used in this exercise, including the Caterpillar Performance Handbook (33 - 36th editions), actual reclamation time studies in the files of Ellis, and engineering judgment. 12.5 Calculation of Revegetation Costs Various seed mixtures used at CC&V have been evaluated and improved as appropriate during the course of the mining operations to continue to obtain species best suited for reclaiming the Cresson Project. It is CC&V's experience that certain species will be replaced with improved native or adapted species capable of supporting the wildlife habitat and livestock grazing post-mining land uses. Revegetation costs are based on actual costs for current seed mixes in use, tree / shrub transplants, and the estimated cost of conventional fertilizer application, seedbed preparation, broadcast seeding, and • hydromulching, as well as estimated costs for helicopter fertilizing and seeding. Revegetation costs also include the costs for liming for the ECOSA in the unlikely event that it is necessary.. 12.6 Calculation of Demolition Costs The demolition cost for most structures was taken directly from the latest version of R.S. Means Heavy Construction Cost Data for 2008, using the dimensions of the structure and simply applying an appropriate cost per unit of volume. This cost estimate does not account for the salvage value or the scrap metal value of materials generated during a large-scale project. It is the experience of Michael D. Ellis, P.E., author of this reclamation cost estimate, that significant scrap value (particularly steel and copper) exists in large scale mine demolition projects and in most cases, with today's scrap market, demolition and building reclamation costs can be fully recovered by the salvage value generated. As such, the current reclamation cost estimate significantly overstates the liability of CC&V building demolition. 12.7 Calculation of Detoxification Costs The detoxification procedure for the VLF is consistent with prior submittals and includes using two pore volumes of water to rinse with a series of resting and rinsing periods • Cripple Creek & Victor Gold Mining Company Cresson Project Mine Life Extension 12-5