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Christopher Schmitz June 2, 2014 <br /> Climax Molybdenum Company 2 1402712 001 TM01 RevO <br /> 2.0 DESIGN CRITERIA <br /> The interim OSF Loading Plan (OSF Plan) was provided to Golder by Climax on May 1, 2014. The <br /> ultimate OSF plan was previously provided on April 23, 2012. The interim OSF Plan and ultimate plan <br /> both use a footprint that is consistent with the operational requirements, post-closure requirements, and <br /> project design criteria for the facility. Based on Climax's current mine plan, the majority (approximately <br /> 70 percent) of the overburden material will consist of igneous and metamorphic rock excavated from the <br /> pit, which is either non-mineralized or contains uneconomical mineralization. The remaining approximate <br /> 30 percent of the overburden removed from the pit will consists of sedimentary rock primarily derived from <br /> the Minturn Formation shale, siltstone, and sandstone. <br /> It is common for mines to update OSF plans throughout the life of the project for a variety of reasons. <br /> These routine changes occur within the framework established by the project design criteria. Therefore, <br /> the relevant parameters in the design criteria were used to construct the ultimate OSF configurations for <br /> purposes of the stability analysis presented in Golder's OSF design report (Golder 2012). Sections <br /> constructed in this manner are intended to represent the "worst-case" cross-section geometry (i.e., <br /> steepest slopes) possible within the constraints of the design criteria. The relevant design criteria are <br /> listed below: <br /> ■ The interim OSF plan, toe limits of the ultimate OSF, and locations of the design cross <br /> sections are shown in Figure 1. <br /> ■ Operational scenario: <br /> • Inter-bench angle of repose slopes were modeled as II AH:1 V(or 36 degrees). <br /> • Operational benches were modeled as a nominal 200 feet wide. <br /> • The maximum height between benches was modeled as 200 feet. <br /> • Overall operational slopes were thus approximately 2.4H:1 V. <br /> • During operational stages, the low-grade ore stockpile, located in the southwest <br /> corner of the OSF footprint, may temporarily have angle of repose slopes in excess <br /> of 200 feet. These slopes were considered in the stability analysis. <br /> The proposed interim OSF Plan generally meets the above operational criteria slopes, with local <br /> exceptions of the operational bench widths, which vary from as narrow as 100-ft to greater than 400-ft <br /> width, resulting in a variable overall operational slope of the down gradient interim OSF between <br /> approximately 2.1 H:1 V and 2AH:1 V, with an average of approximately 2.2H:1 V. Golder considers the <br /> interim plan to be within the intent of the design criteria given that the minimum factors of safety are met. <br /> The acceptable stability factors of safety and the design earthquake conditions from Golder (2012) are <br /> summarized below: <br /> -r_ <br /> Golder <br /> 1A14\1402712\0100\0122\001 TM01 RevO\1402712 001 TM01 RM C1imaxMo1y0SFStabi1ityAna1ysis 02JUN14.docx - Associates <br />