Project Name: Floodplain Property, Creede, Colorado

Date Project Began: October 2009

Date Project Completed: Ongoing

Project Description:  Creede Resources, Inc. owns approximately 103 acres of land located south of the City of Creede, Colorado.  This land area lies predominantly within the Willow Creek floodplain and is referred to as the Floodplain Property.  Casey Resources, Inc. (CRI) was retained by Creede Resources, Inc. to review the available information for the Floodplain Property and to assess the potential to develop a Voluntary Cleanup Plan (VCUP) Application.  The Floodplain Property is vacant land that has been filled with alluvial sediments and mining debris (waste rock, tailings, mining timbers, etc), generally being deposited during flood events.  This mixture of alluvial sediments and mining debris contains elevated concentrations of metals associated with mining activities and natural mineralization upgradient of the Willow Creek floodplain.  The Colorado Department of Public Health and Environment (CDPHE) conducted a limited soil sampling program in the floodplain area in 2009 and determined the floodplain deposits contained abundant mining waste rock material.  Soil samples collected from these materials indicated elevated concentrations of arsenic, lead, and zinc.  Select samples were submitted to the laboratory for Synthetic Precipitation Leaching Procedure (SPLP) analysis which simulates the ability of a solid sample to leach metals when exposed to natural precipitation events.  Both lead and zinc leached; however, the concentrations reported were low indicating limited potential to leach.  Both surface water and groundwater within the Floodplain Property is impacted with heavy metals.  The degree of impact depends on location within the valley.  Elevated concentrations of metals within surface water primarily result from upgradient source areas.  The elevated metals within groundwater are resultant of hydrogeological upgradient sources as well as mining debris sources within the floodplain deposits.  CRI developed a phased approach for submittal of a VCUP Application in order to receive initial approval from the CDPHE with regard to eligibility in Voluntary Cleanup Program, thus allowing planning and scheduling of the remediation to be developed.  This phased approach was agreeable to the CDPHE and included:

• Part I - Property history, VCUP eligibility, summary of available environmental reports, floodplain restoration overview. With CDPHE review and approval of this submittal, the Property owner (or non-profit entity formed between the City of Creede and Creede Resources) will apply for the American Recovery and Reinvestment Act (ARRA) Grant Funds to support the design and restoration implementation effort.
  

• Part II - Materials Management Plan, First Phase of the Floodplain Design Improvements, and Vegetation Development

• Part III - Detailed Design, City and Willow Creek Committee Design Review, and Acceptance.

CRI has completed a draft of the VCUP Part I and is currently developing the plans addressed in Part II.

Type of Contamination:  Heavy metals.