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PERMIT #: M-1977-342 <br />INSPECTOR'S INITIALS: SIM <br />INSPECTION DATE: July 27, 2017 <br />OBSERVATIONS <br />The surface and support facilities at the Henderson Mine were inspected by the Division of Reclamation, <br />Mining and Safety (Division/DRMS) staff. Stephanie Mitchell and Peter Hays were accompanied by Miguel <br />Hamarat, Environmental Manager for the Climax Molybdenum Henderson Operations. <br />The inspection included observation of the following facilities; all storm water outfalls, Pond 1.2, monitoring <br />wells MNGW-1, MNGW-3, MNGW-4, and MNGW-2, the pipeline from the Mine to the turn off to the URAD <br />water treatment plant and the Pig Pit. <br />The wells are to determine the impact of No Name Gulch on the water quality of MNGW-1, which has a <br />lowered pH. After the inspection, DRMS received notice that the pH measurement of MNGW-1 is at 6.1, <br />which is lower than the point of compliance for groundwater. At this time the results do not appear to be <br />anomalous or obvious outliers. MNGW-2 is dry. <br />Pond 1.2 is utilized for storm water. The fence surrounding Pond 1.2 is in need of repair for it has fallen over in <br />some areas. The Liner, inlets and outlets appear to be working properly and are built in accordance with the <br />as-builts. <br />The pipeline that carries water from the mine in 12" and 14" lines to the URAD water treatment plant appears <br />to be working properly. The pipeline is estimated to be 2.5 miles long from the mine facility to the URAD <br />Water Treatment Plant. Once a week, the lines are cleaned with "pigs" that are pushed through the lines with <br />pressure from the surge tank to scour the pipes and reduce the scaling. The surge tank and "pigs" are housed <br />in the Pig Pit, which sits east of the Henderson Mine. Henderson Operations are preparing an amendment to <br />incorporate the water treatment plant into the Henderson Mine and Mill permit. <br />Page 2 of 6 <br />