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PERMIT#:M-1977-493 <br /> INSPECTOR'S INITIALS: ECS <br /> INSPECTION DATE:August 15, 2018 <br /> OBSERVATIONS <br /> This was a routine monitoring inspection for the Climax molybdenum mine, a 112d -3 hard rock mine operated <br /> by the Climax Molybdenum Company—a division of Freeport McMoRan. The inspection was conducted by <br /> DRMS representatives Eric Scott, Peter Hays, Tim Cazier, Jared Ebert, and Dustin Cazpala. DRMS arrived on- <br /> site at approximately 0915. DRMS personnel met with Climax representative James Haag after signing in with <br /> site security and viewing the site-specific safety video. <br /> This inspection was scheduled to coincide with a tailings dam inspection being conducted by the AECOM <br /> engineer of record (EOR) Lisa Yenne, Climax Tailings Engineer Tyson Parrott, and Fremont corporate tailings <br /> stewardship representative Katie Kruger. By accompanying mine personnel during a scheduled tailings <br /> inspection conducted by the EOR, DRMS hopes to achieve a better understanding of the routine inspection <br /> and monitoring processes employed by Climax for the tailings dams and impoundments. Mr. Haag <br /> transported DRMS personnel to meet with the inspectors at 1-Dam. Recent activity at the 1-Dam has <br /> consisted primarily of installing new horizontal toe-drains into the base of 1-Dam to better control the <br /> phreatic surface within the dam structure as well as control and monitor seepage of water through the dam. <br /> 1-Dam is the oldest tailings dam located on the Climax site, and as such these drain structures were not part of <br /> the original construction of the facility. Addition of these drains should help the long-term stability of the <br /> structure, and allow Climax to better monitor the dam for any changes that may require further attention. <br /> The inspection proceeded past the new Lake Irwin wetland mitigation site to the Tenmile/3-Dam. This Tailings <br /> Storage Facility (TSF) has been inactive for the last 2 years, however there is still a small amount of tailings <br /> capacity left in the Tenmile TSF that may be utilized if needed by the operation. Dust suppression activities <br /> were being conducted on the beach area of this TSF during the inspection. The inspection drove across the <br /> crest of 3-Dam and then walked down the face of the dam to observe the general conditions and monitor <br /> existing conditions for any noteworthy changes. DRMS discussed the methods currently implemented by <br /> Climax to monitor movement in the dams with Climax and the EOR, and was satisfied that appropriate <br /> measures were being utilized. <br /> The inspection proceeded "downstream" to the crest of the Mayflower/5-Dam. This is the currently active TSF <br /> for the Climax mill and the group was able to observe the active lead-offs and beach maintenance operation <br /> for this facility. The group then walked the face of 5-Dam and observed the active seeps and the drainage <br /> control and monitoring structures associated with this facility. DRMS also observed some significant <br /> repair/maintenance activity being conducted on the concrete wastewater basins located immediately <br /> upstream of the Mayflower Acid Pump Station. <br /> The field inspection ended with a short stop at the Waste Water Treatment Plant and Climax provided a brief <br /> overview of the facility to some of the DRMS personnel that do not frequently visit the Climax site. DRMS then <br /> returned to the site offices and met briefly with Ray Lazuk to discuss the inspection and the upcoming <br /> submittal of TR28. TR28 is currently under internal review by Climax prior to submittal. No issues of concern <br /> 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 2 <br />