2011-09-27_REVISION - M1990057 (10)

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MILLING PLAN The mill site is a separate, stand -alone facility with no mining operations on or immediately adjacent to the facility. All ore is trucked to the facility and all concentrates are trucked to a smelter. Mill tailings are stored onsite. There is no mining excavation, consequently there is no overburden removal or overburden stockpile, no waste rock stockpile, no ore deposit excavation and no related mining events. There is no groundwater that will be encountered, dewatered, contained or discharged. There will be no explosives used. The mine, supplying RoM ore for the mill, uses a modified cut and fill extraction method, necessitating cemented tailings backfill as mining progresses. The mill will implement further tailings dewatering and supply the mine with the needed material, backhauling in the ore trucks. This tailings backhaul will increase the life of the TSF. MILL SITE The mill is scheduled to recommence operations in August 2011 and the existing facility, with reconstructed TSF tailings impoundment dams, has sufficient tailings capacity to operate approximately 4 years at 160 tons /day (assuming no tailings backhaul). The life of the mill is constrained by the 110 permit maximum disturbance and a 2 -lift Phase 1 and Phase 2 TSF pond. Further expansion or Phases will require a 112 permit. Leadville Mining and Milling, Inc. constructed the mill in 1988 to process ore from its Hopemore Mine. The mine and mill commenced production in 1989 and operated sporadically for less than two years. A building permit was obtained in December 1987 and certificates of occupancy were issued for the crusher building on October 5, 1990 and the mill building on November 9, 1990, as shown in Figures C -1 and C -2, respectively. Double panel windows in the walls with southern exposure were incorporated in the original mill building to contribute to heating with passive solar assistance. The current facility includes two (2) separate metal buildings (crushing building and grinding, flotation building) connected by a conveyor crossover bridge, electric utility line, trailer foundation, septic tank, upper and lower gravel mill access roads, three (3) ore stockpile storage pads, one (1) topsoil storage pad, one (1) TSF overburden stockpile for dam excess cut material and one (1) TSF dam and pond redesigned to meet compaction standards, as presented in Exhibit TSF -01. The entire property is fenced with a 5 -strand barbed wire fence. The mill is accessed by a gravel access road connecting with US Highway 24. RoM ore haulage is on the upper mill road. All concentrate shipments and chemical deliveries are on the lower mill road. The chemical/reagent storage room is being relocated internally within the grinding /flotation building. Now located adjacent to the fine ore feed bin, chemicals and reagents are contained within individual primary containment over - barrels. Any secondary leakage, or containment issues with the stored chemicals or reagents is directed to the mill sump and then to the TSF pond. Laboratory facilities are all contained within the grinding/flotation mill building, immediately south of the office /safety /training/change house facility extension within the previous M1990 -057 September 27, 2011