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7.0 VALLEY LEACH FACILITIES <br />The Cresson Project will process the ore through the High Grade Mill facilities discussed in <br />Section 6.0 and through two VLFs; the existing AGVLF and through a new VLF to be <br />constructed in Squaw Gulch called the "SGVLF ". The SGVLF will be constructed and operated <br />in the same manner as the existing AGVLF and as such the construction and operational methods <br />have a proven track record. The following sections describe minor changes which will occur to <br />the AGVLF as part of MLE2 and the design, construction and operation of the SGVLF. <br />7.1 Arequa Gulch VLF <br />There will be no major changes to the AGVLF as part of MLE2. As discussed in Section 6.0, <br />agglomerated ground product will be one of the products from the High Grade Mill facilities. <br />This agglomerated ground product will be placed on the AGVLF until the SGVLF is operational <br />at which time the agglomerated ground product will be placed on SGVLF. Placement of the <br />agglomerated ground product on the AGVLF was evaluated by AMEC to determine the potential <br />effects on the AGVLF stability. The results can be found in Appendix I of the SGVLF design <br />report in Appendix 9, Volume V of this document and showed that placement will not affect the <br />overall stability of the AGVLF. In addition, storm water that falls on the High Grade Mill <br />facilities platform will be collected in a sump and pumped to the AGVLF until the SGVLF liner <br />system has been tied into the High Grade Mill facilities platform. These will be the only <br />operational changes that will occur to the AGVLF. <br />7.2 Squaw Gulch VLF <br />The SGVLF will be located in the Squaw Gulch, north of the current AGVLF. The new SGVLF <br />footprint area will encompass Squaw /Anaconda and Swede Gulches. The SGVLF will consist of <br />an additional +/- 15 million square feet (surface area corrected for slope) of geomembrane -lined <br />area. As discussed in Section 5.0 location of the SGVLF will required changes to the approved <br />configuration of the SGOSA and a portion of the SGVLF will be constructed overportions of the <br />SGOSA. The construction of the SGVLF also will necessitate realignment of a portion of SH 67 <br />that will be realigned to cross the SGVLF toe berm. The toe berm will stabilize the SGVLF and <br />provide the downgradient containment for the pregnant solution storage area ( "PSSA "). <br />The design of the SGVLF includes a lined leach circuit, a lined dedicated PSSA and a tie -in to <br />the High Grade Mill facilities platform lined area described in Section 6.0. The design of the <br />SGVLF is consistent with the approved and successfully implemented design of the AGVLF. <br />Cripple Creek & Victor Gold Mining Company <br />Cresson Project Mine Life Extension 2 <br />7 -1 <br />