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k'OF.CO`O COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />y� MINERALS PROGRAM INSPECTION REPORT <br />X876 <br />PHONE: (303) 866-3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE/PROSPECTING ID#: <br />MINERAL: COUNTY: <br />Henderson Mine <br />M-1977-342 <br />Molybdenum Clear Creek <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: INSP. TIME: <br />Monitoring <br />Peter S. Hays <br />June 4, 2015 10:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Climax Molybdenum Company <br />I Tim Haynes <br />112d-3 - Designated Mining Operation <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I&E Program <br />None <br />$10,354,051.00 <br />DATE OF COMPLAINT: <br />POST INS . O TACT <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />SIGNATURE DATE: <br />WEATHER: <br />INSP <br />Clear <br />IATURE: <br />June 7, 2015 <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic -forming, as identified in the permit. <br />RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- N (RD) ROADS------------------ N <br />HYDROLOGIC BALANCE------------- N (BG) BACKFILL & GRADING ---------- N (EX) EXPLOSIVES--------- N <br />PROCESSING WASTE/TAILING---- N (SF) PROCESSING FACILITIES------- N (TS) TOPSOIL ---------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE---------------- N (RV) REVEGETATION---- N <br />SIGNS AND MARKERS----------------- Y (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- N (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- N <br />T) ACID OR TOXIC MATERIALS------- N (OD) OFF-SITE DAMAGE ---------------- N (ST) STIPULATIONS------- N <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Pnccihle vinlatian rited <br />Page 1 of 2 <br />