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PERMIT #: M- 1977 -342 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: October 2, 2013 <br />The current exposed groundwater was survey by Henderson to be 1.46 acres. However, it appears gravel has <br />been produce from areas below the groundwater level and the pre -law exposed groundwater has been moved <br />from its original location within the pit due to the ongoing activities at the pit. The Division is concerned the <br />pre -law exposed groundwater relocation and production from areas below the groundwater level will require <br />Henderson to account for the exposed groundwater with an SWSP and augmentation plan. Henderson stated <br />they would investigate the issue further. <br />MNGW -1 and MLGW -7: <br />Henderson notified the Division on June 4, 2013 of an NPL exceedance for pH at groundwater point of <br />compliance (POC) well MNGW -1 downgradient of the Henderson Mine. During this inspection, Henderson <br />provided the Division with the last 6 pH readings for the well. The two most recent results from September <br />11, 2013 and October 1, 2013 indicated pH levels of 6.5 and 6.6 respectively. These readings are within the <br />numeric protection limit of 6.5 -8.5. <br />Henderson plans to install two additional groundwater monitoring wells adjacent to MNGW -1 to determine <br />the potential influence of the adjacent development rock and No Name Creek on the POC well. The <br />installation of the wells is planned for the end of October 2013. <br />Henderson notified the Division on August 7 and 22, 2013 of an NPL exceedance for pH at groundwater point <br />of compliance (POC) well MLGW -7 downgradient of the Henderson Mill 1 -Dam. Henderson is waiting on the <br />results of the September readings. A follow -up report is due to the Division by March 31, 2014 as stated in the <br />written notification letter dated September 12, 2013. <br />Seed Mixture TR: <br />Henderson stated the technical revision to change the approved reclamation seed mixture to include native <br />species was pending and expected to submit it to the Division soon. <br />A tour of the mill facility was conducted as part of the inspection. Photographs taken during the inspection <br />are attached. <br />Inspection Contact Address <br />Mr. Miguel Hamarat <br />Climax Molybdenum Company <br />19302 County Rd. #3 <br />Parshall, CO 80468 <br />Cc: Tom Kaldenbach, DRMS <br />Page 3 of 4 <br />