2010-11-23_PERMIT FILE - M2009076

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Permanent cessation of operations will require the complete removal of all milling equipment and trailers as well as the measures described above. The three milling equipment trailers shall have their wooden cribbing removed. This cribbing can be discarded in a municipal landfill. A truck tractor shall then be employed to couple to the trailers and remove them to an offsite location permitted for equipment parking. There is salvage value in this equipment. The remaining conveyors and bins can be sold for salvage or scrap and removed appropriately. Smaller, loose equipment and supplies may be stored in the Crusher Feed pile enclosure structure (that is to remain) for storage. This site is fairly flat and previously contained parked and stored equipment. Minimal grading may be necessary prior to re-vegetation operations. Re-vegetation shall be done within the existing native soil (properly neutralized as stated above) according to previously specified techniques as stated in 6.14(1)(e)(iii - A). These reclamation measures are entirely appropriate to restore this property to rangeland, as defined by the Colorado 1L11.RB Hardrock Rules. Clear Creek county currently has the patented mining claims of this property zoned M-1 (mining and/or residential). The segments of property that have been added to these parcels via the BLM land purchase program are zoned M-2 (mining only). A copy of Clear Creek county zoning regulations are attached at the end of this Exhibit D. It shall be stressed that the only permitted use of M-2 zoned property in Clear Creek county is MINING. Tailings Impoundment Process Water: During normalized operations, process water contained in the Tailings Impoundment is continually recycled to the Water Holding Pond as an important processing medium. Reclamation measures shall be prescribed to manage this process water in the event of unforeseen cessation and forfeiture of the reclamation bond. As previously described above in the Mobile Millsite Reclamation section, any remaining process water in the various mill process circuits and the Water Holding Pond may be drained down to the Tailings Impoundment via the double walled HDPE pipeline for disposal. The amount of water anticipated from the Mobile Millsite facilities is approximately 20,100 gallons. This water can be drained down gradually and in a very controlled manner inorder to prevent overwhelming- the Tailings Impoundment facilities. The total process water that may have to be contended with is 20,100 gallons from the Mobile Millsite + 201,100 gallons that may be stored in the Tailings Impoundment Pond (refer to Exhibit T, 6.4.20(7)(f)) = 221,200 gallons or 0.68 acre-ft. Since this process water is not in a condition that can be discharged directly to the environment, a treatment method must be used. Evaporation is the best solution. Considering the relatively high pan evaporation rate averaging 38 inches/year and the average precipitation of 15.72 inches/year, the net evaporation rate would be 22.28 inches/year. At this net rate, it could be reasonably expected that it could take 4-6 months to passively evaporate this water over an average pond area of 1 acre. To accelerate evaporation, a system of pumps and forced evaporation equipment may be employed. Western Pump & Dredge in Grand Junction, CO offers rental units. One such unit is capable of processing 45 gal./min. at our climatic conditions. At this rate, this equipment could accelerate the forced evaporation period of time within 1 week. But to be conservative and add an approximate 25%, contingency, 10 days should be sufficient time. As the captured water is evaporated, the embankment crest may be graded into the beach zone to level the bench and facilitate drainage. Measures shall also be applied to any residual stonnwater that may have been captured by the Stormwater Sedimentation Collection Pond. A maximum storage volume of 184,430 gal. should be considered. Since this water is diverted stormwater, it should be in a quality acceptable to be discharged down Hukill Gulch in the normal course of the watershed. This should be done within 72 hours of the storm event. Enough time should be allowed for any sediment to settle before pumping operations. At an easily achievable 65 gal/min, it would take 2 days to pump this water. If contamination is evident, than this water shall be evaporated in the same manner as the process water. After any standing water has been evaporated, leachate collection will begin to diminish rapidly. The hydraulic conductivity and saturation characteristics of the tailings has been analyzed by TRI/Environmental and is reported in Exhibit C. After surface water evaporation, it can be assumed that the slimes fraction of the tailings are impounded Page 6 of 9