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2.0 SITE DESCRIPTION <br />The Cresson Project area is located southwest of Pikes Peak in southern Teller County, <br />Colorado. The center of the permit area lies approximately 2 miles southeast of Cripple Creek, <br />Colorado and approximately 1 '/4 miles north of Victor, Colorado although the permit boundary <br />lies closer to both towns. The mine area lies entirely within the District. The site is accessible <br />from State Highway ( "SH ") 67 as it runs between the cities of Cripple Creek and Victor and <br />from Teller County Road 82. <br />The site lies in high altitude, relatively dry mountainous terrain. The site is characterized by <br />rolling hills with numerous peaks and valleys, some quite steep. The site topography has been <br />locally changed by mining activities over the last 100 years or more. The approximate range in <br />elevation of the project area is from a minimum elevation of approximately 9,000 feet above <br />mean sea level ( "amsl ") near the toe of the Arequa Gulch Valley Leach Facility ( "AGVLF ") to a <br />maximum elevation of approximately 10,450 feet amsl at the crest of the hill east of the East <br />Cresson Mine area and west of the intersection of County Road 82 and County Road 81. <br />Under the approved Mine Life Extension ( "MLE "), mining of ore and overburden, based on <br />anticipated production rates and other factors, was anticipated to continue to approximately <br />2016, processing of solution from the Arequa Gulch Valley Leach Facility would continue to <br />approximately 2024, and final reclamation and closure would be completed in roughly 2032. <br />The extent of MLE activities is shown on Figure 2 -1. <br />As a result of the increases in gold ore reserves realized through ongoing exploration, CC &V is <br />proposing MLE2. MLE2 will extend mining slightly to the east and west of the Main Cresson <br />Mine including a portion of the South Cresson; extend mining to the north and northeast in the <br />Wildhorse Extension portion of the East Cresson Mine and extend the North Cresson Mine <br />slightly to the north in the Globe Hill portion; and to the south in the Schist Island portion. <br />Processing and recovery of the additional gold will be supplemented with the construction of <br />new High Grade Mill facilities for higher grade ore; a second Valley Leach Facility ( "VLF ") <br />(referred to as the "Squaw Gulch VLF" or "SGVLF "), and addition of a second Adsorption, <br />Desorption and Recovery Plant ( "ADR ") (referred to as the "Squaw Gulch ADR" or "SGADR "). <br />Overburden resulting from mining in these extension areas will be placed into other portions of <br />the existing Main Cresson Mine, East Cresson Mine, and North Cresson Mine as mine backfill, <br />or placed for storage in the existing Squaw Gulch Overburden Storage Area ( "SGOSA "), or <br />redesigned East Cresson Overburden Storage Area ( "ECOSA "). The extent of MLE2 activities <br />is shown on Figure 2 -2. <br />'Cripple Creek & Victor Gold Mining Company <br />Cresson Project Hydrologic Evaluation for Mine Life Extension 2 <br />2 <br />