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PERMIT#:M-1977-493 <br /> INSPECTOR'S INITIALS:ECS <br /> INSPECTION DATE:July 15,2014 <br /> OBSERVATIONS <br /> This was a routine monitoring inspection for the Climax molybdenum mine, a 112d-3 hard rock mine operated by the <br /> Climax Molybdenum Company—a division of Freeport McMoRan. This site is located at the summit of Freemont Pass <br /> on Highway 91. DRMS representatives for this inspection, Eric Scott, and Division attorney Julie Murphy who was <br /> accompaning on this inspection for orientation purposes, arrived on-site at approximately 0900. DRMS was <br /> guided/accompanied on the inspection by Climax representatives Ray Lazuk and Aaron Hilshorst. <br /> The DRMS inspection started with an MSHA safety briefing, followed by a general discussion of the site overall and <br /> some items of interest identified by Climax. DRMS observed the active open pit and McNulty Gulch OSF area before <br /> touring the mill facility. DRMS noted that the"North 40"low-grade ore storage area has again significantly expanded <br /> since the previous inspection, and that the Ceresco Ridge haul road was now under construction. Waste rock from active <br /> mining continues to be deposited on the previously existing footprint of the McNulty Gulch OSF. Activity related to the <br /> expansion of the McNulty Gulch OSF as approved has not yet commenced. <br /> Mill tailings were being deposited in the Tenmile TSF during the inspection. The Mayflower TSF is expected to become <br /> active during the first week of August 2014. Because there is remaining tailings capacity in the Tenmile TSF, it will <br /> remain available online as a"backup"for tailings deposition for the next several years in the event that there is an upset or <br /> some other temporary issue preventing the Mayflower TSF from being utilized. <br /> DRMS toured the Sludge Densification Plant(SDP),and the new Property Discharge Water Treatment Plant(PDWTP). <br /> The new PDWTP was put into operation for the first time on July 7, 2014 and was treating approximately 3000 gpm for <br /> final discharge to Tenmile Creek during the inspection. To maintian the required final discharge water treatment and <br /> support the mill process,the PDWTP is required to be operational before the Mayflower TSF can be utilized for full time <br /> tailings deposition. Final construciton details and PDWTP area reclamation work was still taking place in the vicinity of <br /> the PDWTP. While on site DRMS also observed the clean water interceptor ditches,pump barges,TDL's,the new <br /> emergency bypass tunnel and inlet for the Mayflower TSF,and many other features associated with the water capture, <br /> routing,diversion and treatment for the site. All were observed to be operating as designed. Topsoil is being salvaged <br /> from the perimeter of the Mayflower TSF and parts of Searle Gulch and stockpiled near the south end of the Tenmile TSF <br /> dam for use in final reclamation activites. Biosolids recyling for use in reclamaion continues on the far west end of the <br /> Robinson TSF. <br /> DRMS observed the new tracked equipment and materail transfer station that Climax has purchased/constructed for the <br /> application of the Coherix materail for dust supression on the active TSFs. Supression and minimization of windblown <br /> tailings/dust is an ongoing activity at the site, espeically during the spring and summer months. <br /> DRMS also visited the Robinson Lake,and Eagle Park Reservoir to discuss ongoing groundwater monitoring in these <br /> areas. Climax has been proactive in gathering additional data to help characterize the groundwater hydrology in this area <br /> to determine if additional groundwater protection measures are necessary in this drainage. To date, it appears that the <br /> conentrations of several constituents of possible concern in the shallow aquifer monitoring wells have leveled off and <br /> have even begun to decrease. Further monitoring will be required to determine if these are seasonal fluctuations, or <br /> consistent trends,and if additional actions are warranted. <br /> Climax also continues to gather data for the characterization of recently identified,possibly impacted, groundwater to <br /> surface water seep(s)near the base of the reclaimed Stork Yard area. Although some of the seeps show indications that <br /> the water is impacted,there have been no observable effects on the surface water of the Arkansas drainage. However, <br /> Climax will need to address this issue,and mitigate any impacted groundwater to surface water discharge that may be <br /> occurring at this location. Mr. Lazuk stated that additional information continues to be gathered by Climax to this end so <br /> that an appropriate remediation can be implemented, if needed. DRMS will evaluate the data and any potential remedial <br /> plans as provided by Climax. Because CDPHE is the primary regulatory entity for surface water quality,Climax has also <br /> contacted CDPHE regarding the seeps, and is currently awaiting guidance from CDPHE. No other issues of concern <br /> were noted during this inspection. <br /> Page 2 of 2 <br />