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PERMIT #: M-1977-493 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: August 17, 2017 <br />OBSERVATIONS <br />This was a routine monitoring inspection for the Climax molybdenum mine, a 112d -3 hard rock mine operated by the <br />Climax Molybdenum Company .- a division of Freeport McMoRan. The inspection was conducted by DBMS <br />representative Eric Scott. DRMS arrived on-site at approximately 0915. DRMS was guided/accompanied on the <br />inspection by Climax representative Aaron Hilshorst. <br />The inspection began with observing the new toe -drain installation taking place near the base of 1 -Dam. Maintenance of <br />toe -drains in the tailings dams is considered to be part of the normal operations and maintenance of the structures. These <br />structures facilitate proper drainage and maintenance of the phreatic surface within the dams at proper levels (Photos 1 <br />and 2). DRMS also observed the initial phase of the clean-out activity at the Warren Pump Station settling pond adjacent <br />to Robinson Lake. This settling pond captures impacted water and the adjacent pump station returns this water into the <br />circuit for treatment. Water can also be released into Robinson Lake if needed. Periodic cleanout of the accumulated <br />sludge in the settling pond is required to keep the buildup of precipitate from interfering with pumping from the pond. <br />Sludge will be removed from the pond with three vac -trucks and transported to the sludge disposal area adjacent to the <br />Sludge Densification Plant (SDP). At the time of the inspection, Climax personnel were attempting to block the backflow <br />of water from Robinson Lake back into the settling pond, so that the pond could be emptied sufficiently to remove the <br />sediment (Photo 3). <br />Work on the McNulty Gulch OSF expansion, and the Lake Irwin wetlands mitigation cells, both of which were recently <br />approved by DRMS through Technical Revisions 25 and 26 respectively had not yet commenced at the time of this <br />inspection. <br />DBMS proceeded to the area between the groundwater cutoff wall below Robinson Dam and Eagle Park Reservoir to <br />examine the location of a proposed monitoring well. The owners of Eagle Park Reservoir have proposed the installation <br />of a shallow groundwater monitoring well on their property adjacent to the shore near the eastern end of the reservoir. <br />The inspection proceeded past the SDA, which was off-line to undergo routine maintenance and repair, to the Tenmile <br />TSF dam (3 -Dam). No tailings deposition was taking place on either the Tenmile or Mayflower TSF during this <br />inspection. DRMS observed the topsoil stripping and stockpiling activity taking place at the upstream end of Mayflower <br />TSF near the south end of 3 -Dam (photos 4 and 5). DBMS also noted the preventative maintenance of a poly section of <br />the East Tailings Delivery Line (ETDL) that leads to the Mayflower TSF had recently taken place. <br />DRMS then inspected the impacted water capture area at the base of 5 -Dam and the former Mayflower acid pump station. <br />This facility is no longer used to treat impacted water through pH adjustment, therefore the acid handling and storage tank <br />area will soon be decommissioned and partly removed (photo 6). The remainder of this facility still serves as an impacted <br />water return pump station and equipment storage building. <br />At this time the weather was beginning to deteriorate, and rain was falling intermittently. DBMS returned to the mill <br />offices for a brief meeting with Ray Lazuk of Climax prior to departing the site. <br />No issues of concern were noted during this inspection. <br />Inspection Contact Address <br />Ray Lazuk <br />Climax Molybdenum Company <br />Highway 91, Fremont Pass <br />Climax, CO 80429 <br />Page 2 of 3 <br />