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ECOSA Evaluation AdrianBrown <br />1. INTRODUCTION <br />Cripple Creek & Victor Gold Mining Company ( "CC &V ") operates the Cresson Project, located in <br />Teller County, Colorado, near the city of Victor. The Cresson Project is a mining and ore processing and <br />beneficiation facility that currently comprises surface mines, a valley leach facility ( "VLF "), an <br />adsorption, desorption, and recovery ( "ADR ") plant, associated infrastructure, and Overburden Storage <br />Areas ( "OSAs "). The Mine Life Extension ( "MLE ") project is currently operated under Amendment No. <br />9 of Permit M- 1980 -244 of the Colorado Department of Reclamation, Mining, and Safety. <br />CC &V is proposing a second Mine Life Extension ( "MLE -2 "), comprising the following: <br />• Mining of 530 million total tons of run -of -mine ( "ROM ") rock from the Main Cresson and South <br />Cresson portions of the Main Cresson Mining Area, Globe Hill and Schist Island portions of <br />North Cresson Mining area, and WHEX (Wildhorse Extension) portion of the East Cresson <br />mining area. <br />• Placement of approximately 310 million tons of overburden in the Squaw Gulch Overburden <br />Storage Area ( "SGOSA "), the East Cresson Overburden Storage Area ("ECOSA"), and use as <br />backfill in the Main Cresson, East Cresson, and North Cresson Mining areas. <br />• Placement of 220 million tons of ore on the Squaw Gulch Valley Leach Facility ( "SGVLF ") for <br />cyanide leaching to recover gold and silver from the ore. <br />• Milling of 2 million tons of higher -grade ore a year and placement of tailings agglomerated with <br />Portland cement on the SGVLF and Arequa Gulch Valley Leach Facility ( "AGVLF ") for final <br />leaching. <br />The locations of the MLE -2 operations are presented in Plate 1. <br />This report presents an evaluation of the ECOSA. The MLE -2 ECOSA will store approximately 120 <br />million tons of overburden at the design configuration. The facility is located on the southern flank of <br />Grassy Valley, at the north of the project (Plate 2), and will be expanded to the east towards the Grassy <br />Valley surface drainage area. Once completed, ECOSA will have an area of 268 acres and a maximum <br />elevation of 10,565 feet msl. <br />1385E.20120224 <br />