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V <br />r <br /> . -2- August 5, 2009 <br />Our carefully designed processing program operates as follows (described in brief outline terms): <br /> iven time is bein <br />t <br />t <br />l <br />i <br />ll <br />1. g <br />any g <br />y a <br />y one proper <br />y on <br />ca <br />A particular property is selected to be cleaned-up. Typ <br /> remediated. Only after this site is sufficiently reclaimed would we move on to the next one. <br />2. An excavation permit is acquired from the local jurisdiction (Gilpin or Clear Creek). This excavation permit <br /> addresses "best management practices" during the removal process including stormwater management. The <br /> permit also addresses final grading and final erosion control through re-vegetation, etc. of the site once the waste <br /> rock dump is removed and excavation is complete. <br />3. During the removal process we use a track-type excavator and/or a rubber tire front-end loader to scoop-up and <br /> load tandem dump trucks with the waste rock. There will be no need for any blasting or drilling because this <br /> material is not in it's naturally occurring geologic condition. <br />4. The dump trucks then drive to the off-site processing facility. <br />5. Once the target property has had the dump removed, final grading and re-vegetation will be done. Depending on <br /> specific site soil conditions, we may have to import a blend of wood-chips and biosolids to stimulate this re- <br /> vegetation processes. <br />6. The dumb trucks arrive at the processing facility and unload into a "dav pile" next to the crushing plant. <br /> a. This "day pile" is a short-term stock pile that will have stormwater management measures in place to <br /> control the potential of any acid run-off. <br />7. A loader will begin feeding a bin that feeds a jaw crusher. This jaw crusher will reduce any larger rock to +/- <br /> 1.011 <br />. <br />8. Once through the jaw crusher, the material is feed to a roll crusher which further reduces the material to +/- 1/8". <br /> This two-stage crushing operation is a dry operation and the material is collected in a weather-tite bin of sufficient <br /> size to accommodate one day's feed. <br />9. The crushed material is then feed to a ball mill. Here we begin to add water and lime to control the pH. <br /> a. The rotating action of this cylindrical mill with a charge of round steel balls produces a grinding process. <br /> b. The raw dump material is capable of showing a pH of 3.5, highly acidic. <br /> c. We add several pounds of lime to each ton of material to bring the pH to slightly better than 7.5. It is <br /> chemically impossible to have heavy metals in solution when the pH is basic. Adding the lime <br />• precipitates the heavy metal contaminants. <br /> d. An electronic pH monitor and controller is used to maintain a consistent rate. <br />10. The finely ground (+/- 100 mesh) slurry is then delivered to a concentrating ("shaker") table. Here is where the <br /> specific gravity separation of the heavy metals and any trace precious metals takes place. There are four zones on <br /> the table where a product is delivered: <br /> a. Slimes zone - discharge is collected and sent to the flotation circuits for further treatment. <br /> b. Sand zone - discharge is devoid of any mineralization, cleaned sands sent to tailings. <br /> c. Middlings zone - discharge is a recycle loop back to the ball mill for further grinding. <br /> d. Table Concentrates zone - discharge is collected. The table concentrates contain about 70% of the heavy <br /> metal contaminants and any economically viable metals. Concentration ratios as high as 100:1 may be <br /> achieved. This product is viable and sold to a third party (smelter, refiner, etc.). <br />11. The slimes off of the table are then feed into the flotation circuit of the mill. Here a two-stage flotation process <br /> collects the very finest and trace particles the gravity circuit missed. Minute amounts of chemical promoters and <br /> collectors are added (ie xanthate, copper sulphate, pine oil). This creates a chemistry that allows the targeted <br /> metals to attach to air bubbles that create a froth in the conditioning cells. This froth is skimmed off and <br /> collected. The flotation concentrates are also a salable product. <br />12. The final tailings have been carefully lab analyzed (TCLP metals, total metals, etc.) and are essentially inert sand <br /> and clays. To ensure quality control the pH monitor watches the pH of the final tails and alerts the operator to <br /> anything out of spec. Additionally, periodic sample testing will be performed. <br />13. The slurried tailings are piped to the tailings solid waste impoundment. A total build-out will consist of five <br /> benches stair-stepped up the gulch. The bench faces are nominally 40' high and 60' deep. The process water is <br /> de-canted from the tailings and pumped back to the mill, recycled for further use. <br />14. As each 1/4 bench is filled, staged reclamation will occur. Stormwater diversion is continually advancing ahead of <br /> the impoundment as it grows to capacity. Maximum exposure is limited at any given time to `/4 bench. A 6" cap <br /> of woodchips and biosolids is imported for a soil foundation. Highland pasture grass and erosion control netting <br /> is applied. <br />15. Once the impoundment has reached final build-out and the last incremental reclamation is complete, a post- <br /> closure period of two years monitors and maintains the facility until substantial re-vegetation takes hold. <br />