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CMC—Henderson Operations <br /> DRMS 2016 Annual Water Monitoring Report <br /> May 2017 <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 2016 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 2016 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, historical data from triannual DRMS <br /> monitoring and 5-Quarter Baseline Monitoring are included. 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. <br /> Values of pH below the established NPLs was seen during monitoring events in 2016. Monthly <br /> internal sampling was conducted throughout 2016 to further monitor the wells pH. In <br /> accordance with the GWMP, Henderson has provided notification to the DRMS upon <br /> reoccurring pH exceedances for POC wells, when necessary. <br /> Following the installation of two new monitoring wells, the focus of further evaluation of the pH <br /> exceedances has shifted to influence by a diversionary canal (No Name Gulch/NNG-50), which <br /> picks up naturally acidic waters near the Red Mountain system, as well as other potential <br /> contributing factors. As previously discussed with DRMS, Henderson continues with a source <br /> evaluation to determine any contributing factors to the low pH at MNGW-1. <br /> 4 of 7 <br />