2012-11-02_REVISION - M1984094 (3)

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Golden Cross Aggregate Gloria Z Mine TR Information The information below should be added to Exhibit D - Mine Plan Section 1.0 Water Exposure It is important for the recovery of gold from the placer operation that some water be exposed to allow access to the more concentrated material near the bedrock surface. Other water exposure is needed for the gold processing plant settling ponds and water infiltration ponds. The placer material will pass through the process plant, consisting of jigs, sluices and other gravity separation equipment, where considerable amounts of water are used to make a separation of the gold due to its density. No chemicals are used in the process. The clean gravel and fines will be allowed to settle in settling ponds which will be cleaned out from time to time as needed. The resulting silt will be disposed of on site or used as a subsoil in the reclamation at a later date. Overflow water from the settling ponds will then be allowed to flow into a large infiltration pond which has no discharge. The water will infiltrate into the ground due to the porous nature of the gravel. The placer operation will be allowed to expose a certain amount of groundwater based on two reasons: 1) Calculations are shown to define what this consumptive use is and documents are provided to demonstrate that this consumptive use is allowed during mining. 2) The operation will not need an augmentation plan since the amount of water exposure will be limited to such a small area that it will be easier to backfill this exposure for reclamation rather than account for it in the augmentation plan. The cost for this backfilling is now included in the revised Reclamation Costs of Exhibit L. Section 2.0 Water Consumptive Use Calculations The water exposure for the placer excavation pit will be limited to a maximum of 9000 square feet ( .21 acres). The water exposure for the placer processing plant ponds will be limited to a maximum of 18000 square feet ( .42 acres). The water exposure for the infiltration pond will be limited to a maximum of 32230 square feet (.74 acres). This gives a total surface water exposure of 1.37 acres. The total consumptive use for this surface area (based on local climate and SB120 Evap Table from the Colo. Division of Water Resources for sites above 6500 ft) is 2.85 ac -ft per year.