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1.0 INTRODUCTION <br />1.1 Background <br />This document is being submitted by Cripple Creek & Victor Gold Mining Company ( "CC &V ") <br />as an application for a modification to the existing Mined Land Reclamation Permit M- 1980 -244 <br />for the Cresson Project, known as Mine Life Extension 2 ( "MLE2 "). The last significant <br />permitting activity by CC &V for the Cresson Project was the Mine Life Extension ( "MLE ") <br />Amendment No. 9. That application was approved by the Office of Mined Land Reclamation <br />( "OMLR ") on December 3, 2008. Under the approved MLE, mining of ore and overburden, <br />based on anticipated production rates and other factors, was anticipated to continue to <br />approximately 2016, processing of solution from the Arequa Gulch Valley Leach Facility would <br />continue to approximately 2024, and final reclamation and closure would be completed in <br />roughly 2032. MLE2 involves additional mining of ore and overburden that, based on current <br />production rates and other factors, is anticipated to encompass at least nine years or until <br />approximately 2025; additional backfilling and overburden placement; addition of a second <br />Valley Leach Facility ( "VLF ") (referred to as the "Squaw Gulch VLF" or "SGVLF "); addition of <br />a second Adsorption, Desorption and Recovery Plant ( "ADR ") (referred to as the "Squaw Gulch <br />ADR" or "SGADR "); addition of a High Grade Mill for processing higher grade ore; <br />accompanying changes to mine areas and overburden storage areas; and subsequent reclamation <br />of the MLE2 disturbance areas. <br />The affected acreage of the proposed MLE2 is approximately 4,670 acres, which is an increase <br />from the approximate 4,200 acre affected area approved for MLE. The affected area continues <br />to include the Carlton Tunnel area, which is part of Permit M- 1980 -244 but located distant from <br />the main permit area. The main increase in affected area is associated with SGVLF, as well as <br />extension of the East Cresson Overburden Storage Area ( "ECOSA ") and expansions of the East <br />Cresson and North Cresson Mine areas, specifically the Wildhorse Extension ( "WHEX ") and the <br />Globe Hill /Schist Island portions, respectively. <br />For the proposed MLE2, the permit boundary increases by about 127 acres from that approved in <br />MLE, principally in the area of the SGVLF and North Cresson Mine area. Additional land has <br />been acquired in these areas to allow construction of the SGVLF and extension of North Cresson <br />Mine resulting in changes to the permit boundary. The changes would result in a total permit <br />area increase from the current approximate 5,862 acres to about 5,990 acres, including the 15.4 <br />acres of the Carlton Tunnel area. Financial warranty for areas affected to date under MLE and <br />subsequent approved technical revisions has been posted with the OMLR in the amount of <br />Cripple Creek & Victor Gold Mining Company <br />Cresson Project Mine Life Extension 2 <br />1 -1 <br />