2012-02-28_REVISION - M1980244 (62)

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• Additional ore stockpiles • A laydown yard and Projects Office facilities Several other peripheral activities will occur for which no approval is sought or needed from the Mined Land Reclamation Board ( "MLRB ") or OMLR. For example, the existing Grassy Valley pump and pipeline will require upgrading to provide water for the High Grade Mill facilities, and SH 67 will be realigned to run across the newly constructed SGVLF toe berm. Additional ancillary changes will occur as a result of MLE2 activities. These changes are discussed in more detail in the enclosed application, along with detailed discussions of the key project elements mentioned above. Ore handling methods will change slightly due to the addition of the High Grade Mill facilities. Higher grade ore will be first crushed using the existing crushing facilities. Based on the current annual rate of about 27 MT, approximately 2 MT will be higher grade ore material that will then be directed to the High Grade Mill facilities with the remaining 25 MT going directly to the VLFs (AGVLF and SGVLF). Higher grade ore material will be closely mapped in each mine area and blasting will occur to selectively blast the higher grade zones separately from other ore zones intended for the leach facilities. The higher grade ore material will be stockpiled in the mine areas and fed in weekly batches through the crushing facility, separated from ore material crushed for the placement in the VLFs. The crushed higher grade ore material will be hauled from the Load Out Bin ( "LOB ") to stockpiles near the High Grade Mill facilities to allow for continuous feed of higher grade ore through the mill There will be up to 3 MT of ore and higher grade ore material stockpiles at the Cresson Project, either within the mining areas, or at the crusher, LOB, or High Grade Mill facilities. The mine area ore material will be crushed and processed using the existing crushing and conveying facilities. The existing LOB and associated conveyors will be used for loading of the crushed ore material into the mining fleet for placement within the AGVLF and SGVLF. In addition, the ground product coming from the High Grade Mill facility will be agglomerated and blended at the LOB with the other crushed ore material for placement on one of the VLFs for additional gold recovery. Total placement of ore material on the VLFs at the Cresson Project is anticipated to be no more than 27 MT per year, including the 2 MT per year of agglomerated ground product coming from the High Grade Mill facilities. Crushed material will be leached on the existing AGVLF and SGVLF with process solutions. Pregnant solutions (i.e., solution laden with gold) at SGVLF will be routed through the new SGADR for gold processing activities that will result in a gold sludge. The gold sludge will be filter pressed and dried before being transported to the existing AGADR refinery for final gold recovery. Barren solutions (i.e., solution for which gold has been removed) at the SGVLF will be recycled for use at the SGVLF. No change is proposed under MLE2 for the existing AGVLF, that is, pregnant solutions at the AGVLF will continue to be directed to the existing AGADR facility for processing; barren solutions at the AGADR will be recycled for use at the AGVLF or may be transferred to the SGVLF via a new pipeline to the new SGADR. The High Grade Mill will be a 250 -ton per hour ( "tph ") grinding, froth flotation, and gold leaching facility to improve the gold recovery from some of the site's higher -grade ore deposits.