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The Leadville Mill <br />4.0 EXHIBIT C - MILL PLAN (SEC 6.3.3) <br />4.1 BACKGROUND <br />M 1990 -057 <br />EXHIBIT C — MILL PLAN <br />Page 4 -1 <br />The Mill (permitted under Calais Colorado Resources, Inc. Permit M1990 -057) is <br />scheduled to commence operations with mill closure to occur in 2040. The planned <br />facility, with the reconstructed TSF (Section 4.3, Tailings Storage Facility), has <br />sufficient capacity to operate approximately 1 year at 160t /d. <br />Leadville Mining and Milling, Inc. constructed the mill in 1989 to process ore from the <br />Hopemore Mine located 8mi east of the Mill. The mine and mill commenced <br />production in 1989 and operated sporadically for less than two years. A building <br />permit was obtained in December 1987 and certificates of occupancy (Sec. 7.0, <br />Exhibit F) were issued for the crusher building on October 5, 1990 and the mill <br />building on November 9, 1990. The Mill was originally selected -to: <br />• Locate the tailings storage facility; <br />• Mitigate the generation of airborne migration of dust from the tailings <br />disposal area; <br />• Isolate from neighbors and heavy traffic; <br />• Locate in close proximity to electric power, water, and natural gas; and, <br />• Minimize haulage distance within the mining district. <br />The mill site is located in a heavily- wooded area on the lee side of an east -west <br />trending hill which affords maximum protection from the normal prevailing wind <br />from the northwest. The mill maintains a minimum cleared area to afford a good <br />firebreak distance around the buildings, roads and tailings storage area. <br />The nearest inhabited buildings to the mill permit boundary is a structure (Mellott) <br />located about 550ft northwest, a house (Mellott) located approximately 800ft west <br />and a house (Wibbenmeyer) located approximately 550ft west. <br />Sec. 13, Exhibit L describes and illustrates the location of "Permanent Man -Made <br />Structures" within 200ft of the permit boundary. <br />Version 1.0 April2013 <br />