2012-02-28_REVISION - M1980244 (62)

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south in the Schist Island portion. Overburden resulting from mining in these extension areas will be placed into other portions of the existing Main Cresson Mine, East Cresson Mine, and North Cresson Mine as mine backfill, or placed for storage in the existing Squaw Gulch Overburden Storage Area ( "SGOSA ") or redesigned East Cresson Overburden Storage Area ( "ECOSA "). Processing and recovery of the additional ore will be supplemented with the construction of a new High Grade Mill for higher grade ore, new SGVLF, and new SGADR facilities. The proposed MLE2 will be implemented with approximately 150 more employees, which will increase the total employment at the Cresson Project to an anticipated 600 employees. The equipment fleet will increase modestly. Production rates are envisioned to remain relatively the same as the currently permitted rate of about 27 million tons ( "MT ") of ore material mined annually. Based on current production rates and other factors, the proposed MLE2 activities are anticipated to increase the mine life of the Cresson Project from approximately 2016 to about 2025 along with associated increases in the anticipated processing and neutralization/reclamation timeframes. The timelines presented herein for active mining, ore placement, continued recovery, neutralization, reclamation, and other activities are approximate and are based on anticipated production rates, mining fleet, crusher availability, gold price, gold recovery, and many other factors. As such, these approximate timelines may change and result in a shorter overall mine life or a longer overall mine life of the Cresson Project. The following are the key project elements under the proposed MLE2: • A new SGVLF and appropriate modifications of the drainage and storm water management plan in Squaw Gulch to accommodate the SGVLF • A new SGADR and associated power supply with final gold refining continuing to occur at the existing Arequa Gulch ADR ( "AGADR ") facilities • A new High Grade Mill facilities for gold recovery including grinding, flotation, and Carbon -In -Pulp ( "CIP ") circuits with final gold recovery continuing to occur at the existing AGADR facilities • Extended mining areas associated with the Main Cresson Mine, the WHEX portion of the East Cresson Mine, and the Schist Island and Globe Hill portions of the North Cresson Mine • Some changes in categories of affected acreage within the permit boundary (e.g. from SGOSA to SGVLF) • Extension of visual, noise, and lighting berm northwest and west of North Cresson Mine • Addition of haul roads to connect the extended mine areas, Load Out Bin ( "LOB "), the High Grade Mill, and SGVLF • New security access to SGADR from a realigned portion of re- routed State Highway ( "SH ") 67 in Squaw Gulch; referred to as "Squaw Gulch Security Access" • An extension and redesign to the ECOSA • Changes to the SGOSA to accommodate the SGVLF with elimination of the SGOSA Extension • Security, offices, and warehouse facilities for the SGVLF and SGADR