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amecoAy <br />December 17, 2009 <br />Mr. Timm Comer <br />Manager, Environmental Resources <br />Cripple Creek & Victor Gold Mining Co. <br />P.O. Box 191 <br />Victor, CO 80860 <br />Re: Hydro-JexTrm Program Review <br />Dear Timm: <br />AMEC Earth and Environmental (AMEC) has prepared this letter for the Cripple Creek & Victor Gold <br />Mining Company (CC&V) presenting a stability review for the Hydro-Je)Jm program being proposed by <br />Metal Recovery Solutions, LLC (MRS). The program, as outlined in the MRS letter dated 27 November <br />2009, will consist of drilling several cased borings into the Valley Leach Facility (VLF) ore heap. Fluids will <br />then be injected into the borings at different intervals. In all cases, the borings will be completed a <br />minimum of 100 feet above the liner surface. <br />According to the preliminary layout of the borings provided by CC&V, the borings are to be located along <br />the 9925 bench, with a crest set-back of approximately 20 feet. According to the MRS letter, the injection <br />pressures into the ore heap are to be varied to be at or just below the overburden pressure. <br />There are several case studies of injecting fluids into ore heaps to enhance recovery. From a stability <br />standpoint, injecting fluids into ore heaps can be safely done without risking stability by carefully <br />monitoring injection pressures. In general, the most critical conditions for fluid injection occur with <br />injection at shallow depths. This is because of the low in situ stresses in the ore heap, which may be <br />exceeded if injection pressures are not monitored closely. Exceeding the in situ stress at or near an ore <br />slope, may lead to localized instability. <br />As part of the review of the proposed injection program, AMEC analyzed the injection pressure and extent <br />of saturation at several locations in the VLF ore heap. These data were then used to assess stability of <br />the VLF ore slopes. To assess the injection pressures and extent of saturation, the numerical model <br />TOUGHV2 was used. TOUGHV2 (Pruess et al, 1999) is a multi-dimensional numerical model for <br />simulating the coupled transport of water, vapor, air, and heat in porous and fractured media. TOUGHV2 <br />takes account of fluid flow in both liquid and gaseous phases occurring under pressure, viscous, and <br />gravity forces according to Darcy's law. Interference between the phases is represented by means of <br />relative permeability functions. The ore slope stability was analyzed using the program Slide 5.0 <br />(RocScience, 2008). <br />Figure 1 presents a plan map of the VLF showing the 9925 bench. Figure 2 presents a section through <br />the VLF that was used to assess injection and stability. It is important to note that the focus of the <br />analyses was on the upper 115 feet of the ore heap from the 9925 bench. Fluid injection at depths greater <br />than 115 feet, would have no effect on stability due to the large, unsaturated ore section. <br />Prior to assessing the effect of injection on stability, a stability analysis was conducted on the section <br />shown in Figure 2, under a no-injection scenario. The stability analysis was conducted using the same <br />ore strength parameters that have been used for the VLF design (e.g. friction angle of 40 degrees and <br />zero cohesion). The results of the stability analysis are presented in Figure 3, indicating a Factor of Safety <br />(FOS) of 1.62, under a no-injection scenario. <br />AMEC Earth & Environmental, Inc. <br />304 Inverness Way South, Suite 490 <br />Englewood, Colorado 80112 <br />Tel: (303) 433-0262 <br />Fax: (303) 433-0362 www.amec.com <br />SAPROJECTS1112SE CCV COA1e - correspondencelhydro jex letter-doe