2018-08-31_GENERAL DOCUMENTS - M1977493

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2016 Reclamation Cost Estimate Update — Climax Mine Technicians, Mechanics, Maintenance, and Electrical staff has been increased from 4 to 8 full-time equivalents. The baseline costs assume a treatment footprint of approximately 10,000 acre -ft. Similar to the base assumption for the AM -06 approved cost, we have factored the first 5 years of water treatment to an estimated 8,100 acre -ft footprint (this equates to about 5,000 gpm which is an average of how much water is currently treated over a given year) and a subsequent 3 years of water treatment (post facility reclamations) to an estimated 3,570 acre -ft footprint (this equates to about 2,000 gpm which is the amount of water on average Climax would have to treat from the various seeps after the other facilities are reclaimed in the previous 5 years) for an equivalent net present value. The Mill Water Barge and its associated local infrastructure (surge tank and building, dual pipelines, etc.) will likely be demolished at the cessation of production operations. The SDP will be utilized long-term for stage 1 water treatment and will no longer be demolished. 2.23 Demolition — Former Mine Buildings, utilities, processing equipment, and other above -ground structures and materials no longer required during the post -reclamation period will be demolished. To the extent possible, the salvageable and recyclable materials obtained from these structures and facilities will be retrieved and sold, or recycled; the corresponding direct cost credit has been included as referenced. Material that is not retrievable or practicably recycled will be disposed of by burial. Buried pipe, wire, etc. will be left in place during reclamation if it does not interfere with regrading activities and is non-toxic or not hazardous. Foundations deeper than 3 feet from the reclaimed surface that will not interfere with regrading activities will also be left in place. Concrete floors, walls, equipment pedestals, and foundations that will be within 3 feet of the reclaimed surface will be demolished and buried prior to site regrading. Asphalt will only be left in place if it will be useful for long-term roads. AM -06 included demolition costs for the structures which have since been demolished (e.g. old Scale House, Tailing Distribution House) or will no longer need to be demolished due to their intended use post cessation of mining (e.g. SDP and Clarifier, Warren's Pump Station). 2.24 Demolition — Linear Facilities Several linear facilities at Climax will not be needed following cessation of production operations. These include substations and powerlines, pipelines, and similar historic structures. Again, and to the extent possible, the salvageable and recyclable materials obtained from these structures and facilities will be retrieved and sold, or recycled; the corresponding direct cost credit has been included as referenced. Material that is not retrievable or practicably recycled will be disposed of by burial. Buried pipe, wire, etc. will be left in place during reclamation if it does not interfere with regrading activities and is non-toxic or not hazardous. Foundations deeper than 3 feet from the reclaimed surface that will not interfere with regrading activities will also be left in place. Concrete floors, walls, equipment pedestals, and foundations that will be within 3 feet of the reclaimed surface will be demolished and buried prior to site regrading. AM -06 included demolition costs for asphalt removal in the Camp area (Mine Mill Complex). These demolition costs remain in this update under the Mine Mill Complex. 2.25 Demolition — New Structures Several new structures constructed since the restart of production in 2012 will no longer be required during the post -reclamation period and will be demolished. These structures include the Mayflower Coherex Station constructed in 2014, the Supply Canal No. 2 Pipelines constructed in 2012, the Mayflower Flood Bypass Tunnel constructed in 2012-14 (see TR -21), and a portion of the Mill Return Pipeline in Searle Gulch constructed in 2013. Again, and to the extent possible, the salvageable and recyclable materials obtained from these structures and facilities will be retrieved and sold, or recycled; the corresponding direct cost credit has been included as referenced. Material that is not retrievable or practicably recycled will be disposed of by burial. Buried pipe, wire, etc. will be left in place during reclamation if it does not interfere with regrading activities and is non-toxic or not hazardous. Foundations deeper than 3 feet from the reclaimed surface that will not interfere with regrading activities will also be left in place. Concrete floors, walls, equipment pedestals, and foundations that will be within 3 feet of the reclaimed surface will be demolished and buried prior to site regrading. 6 November 2016 (revised August 2018)