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May Day Idaho Mine Complex 112 (d) Permit Application <br />D. Mill Retrofit and Commissioning <br />Following stabilization of the May Day No. 1 portal, any damage to the mill equipment <br />will be repaired. Additionally, the following modifications will be made to the mill <br />within the underground workings: <br />• Extending the rod mill approximately 20 feet within May Day No. 1 adit; <br />• Relocating the ball mill into the May Day No. 1 adit; and <br />• Install a tailings pipeline from the mill to the May Day No. 1 stope, approximately <br />700 feet along the May Day No. 1 adit. <br />Following retrofitting, the mill will be commissioned and a period of optimization will be <br />undertaken as described below. <br />E. Ore Stockpile Consolidation <br />Several historic stockpiles have been identified as having ore concentrations that are <br />suitable for milling. These are located at: <br />• May Day No. 2 bench; <br />• Idaho No. 1 bench; and <br />• Lamb bench. <br />The stockpiles will be re-located to the May Day No. 1 adit, using pre-existing roads. <br />F. Augmentation Pond Construction <br />An augmentation pond is required pursuant to Colorado State Engineer requirements. <br />The location of the augmentation pond, within the Idaho Operational Area, is depicted on <br />Figure C-4, Exhibit C. Construction design is provided in Exhibit 6.5 - Geotechnical <br />Stability. <br />G. Reclamation Activities <br />Reclamation activities will be undertaken to remove soil and rock debris located in Little <br />Deadwood Gulch at both May Day No. 2 and Chief Operational Areas as per the <br />Reclamation Plan (Exhibit E). Locations of ore stockpiles that have been disturbed <br />during the relocation of ore to the May Day No. 1 adit will also be reclaimed in <br />accordance with the Reclamation Plan. <br />2. Phase 2 - Milling Optimization <br />Following the mill retrofit, there will be a period of milling optimization using 7,000 tons <br />of the material that is located within the May Day No. 1 adit. Optimization is estimated <br />to take 90 days following commissioning of the milling equipment. <br />The proposed milling process is as follows: <br />May Day Idaho Mine Complex 112(d) Permit Application <br />September 21, 2010 <br />2