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CMC—Henderson Operations <br /> DRMS 2015 Annual Water Monitoring Report <br /> May 2016 <br /> Introduction <br /> The GWMP establishes a plan for groundwater monitoring at the Henderson Mine and Mill for <br /> the protection of groundwater quality pursuant to Rule 3.1.7(5) of the Mineral Rules and <br /> Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal, and <br /> Designated Mining Operations and the Colorado Water Quality Control Commission (WQCC) <br /> standards. Henderson has prepared this report in accordance with the requirements of Section 7.1 <br /> of the GWMP to summarize results of 2015 water monitoring activities. <br /> 1.0 Discussion of Annual Water Monitoring Data <br /> This section provides a summary of the annual water monitoring data collected in 2015 in <br /> accordance with the GWMP for each permit-identified POC well and non-POC long-term <br /> surface water monitoring location at the Henderson Mine and Mill. Monitoring is conducted <br /> three times per year as stipulated in the GWMP as follows: <br /> • During the April through June spring run-off period; <br /> • During the summer months of July and August; and <br /> • During the September through December low-flow period. <br /> To provide a better data set for trending purposes, the graphs generally include historical data <br /> from triannual DRMS monitoring and 5-Quarter Baseline monitoring. Data can be seen in trend <br /> evaluation graphs as well as in the data tables. Note that for the purpose of trending the <br /> analytical data, results reported below the laboratory detection limit are shown as a value of zero. <br /> All monitoring locations are depicted in Figures 1 and 2. <br /> Outliers are identified, as needed, using either the Dixon's or Rosner's statistical method <br /> depending on the available number of data points. Although data from prior reporting years is <br /> presented herein for trending and discussion purposes, outlier and NPL assessments/discussions <br /> are limited to current reporting year data. <br /> 2.1 Henderson Mine <br /> Henderson Mine monitoring locations include POC well MNGW-1 and surface water locations <br /> BG-20, CC-10 and CC-30. Graphical trends for MNGW-1, BG-20, CC-10 and CC-30 are <br /> presented as Trend Evaluations 1-16 of this report. <br /> 2.1.1 Point of Compliance Sampling Location: MNGW-1 <br /> MNGW-1 is a shallow alluvial well located downgradient of the Henderson Mine operations. No <br /> iwerein 2 1 Following the installation of <br /> apparent trends, deviations orexceedances observed 0 5. <br /> pp <br /> two new monitoring wells, the focus of further evaluation has shifted to influence by a <br /> diversionary channel (No Name Gulch/NNG-50), as well as other potential contributing factors. <br /> As discussed with DRMS at Henderson's first routine inspection (April 215t), Henderson would <br /> like to continue with a source evaluation to determine any contributing factors, such as No Name <br /> Gulch, or potential from nearby development rock from early mining activities. Freeport- <br /> McMoRan has also identified internal geochemical specialists (Life Cycle Analysis Team, <br /> Tucson, AZ) who will begin an evaluation of this area, in concert with past evaluations from <br /> AJAX and CCA, to identify the most likely contributors to low pH readings witnessed at the <br /> 4of8 <br />