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PERMIT #: M-1977-342 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: June 4, 2015 <br />OBSERVATIONS <br />The Henderson Mine was inspected by Peter Hays and Wally Erickson with the Division of Reclamation, Mining <br />and Safety (Division/DRMS) as part of the Division's monitoring inspection program. Mr. Tim Haynes with <br />Climax Molybdenum - Henderson Operations (Henderson) was present during the inspection and conducted <br />the tour of the Mill facilities. <br />A tour of the mill facilities was conducted to orient Mr. Wally Erickson, the new Minerals East Team Senior <br />Environmental Protection Specialist, with the Henderson milling operation and facilities. The following <br />facilities were observed during the tour; the west portal, the PC 2 / PC 3 transfer station, the PC2 and PC3 <br />alignments, the tailings delivery lines, the tailings storage impoundment, the topsoil storage areas, the barge <br />pump house, the mill building and the milling process. <br />Two technical revisions were submitted by Henderson and approved by the Division since the previous <br />inspection; Technical Revision No. 25 for Phase 2 of the Ute Park Extraction Wellfield and Technical Revision <br />No. 26 for the Tailing Storage Facility Liner System. The technical revisions were approved by the Division on <br />May 11, 2015. Henderson is required by Rule 7.3.2(2) to submit an engineering certification and as -built <br />drawings for the projects upon completion. <br />The Nokes Building ventilation improvements and containment repairs were ongoing during the inspection. <br />The Fire Water Line leak repair project had not begun at the time of the inspection. The Division met with <br />Bryce Romig with Henderson on May 18, 2015 to discuss the financial warranty status. Henderson is updating <br />the latest warranty calculation for 2015 values and will provide a copy of the updated estimate for Division <br />review soon. The Division is working on the clarification memo regarding the memo dated April 14, 2015 in <br />response to the 5 -Quarter Water Quality Data and Baseline Parameters Report dated May 29, 2014. <br />No photographs were taken during the inspection. <br />Inspection Contact Address <br />Miguel Hamarat <br />Climax Molybdenum Company <br />19302 County Rd. #3 <br />Parshall, CO <br />Page 2 of 2 <br />