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PERMIT#: M-1977-493 <br /> INSPECTOR'S INITIALS: ECS <br /> INSPECTION DATE: September 12,2018 <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 representative Eric Scott. DRMS arrived on-site at approximately 0915 and met with Climax <br /> representatives James Haag and Emil McCormick after signing in with site security. <br /> Due to the scheduling conflicts, this inspection was somewhat abbreviated and consisted of site discussion <br /> and inspection of the ongoing work on the West Interceptor Ditch, timber clearing and topsoil stripping at the <br /> McNulty Gulch OSF for the approved OSF expansion project, and inspection of the Lake Irwin Wetlands <br /> project. DRMS also briefly discussed the existing sludge cell used to contain the waste from the Water <br /> Treatment Plant, and what permitting would be required to expand or re-locate that sludge cell as the existing <br /> facility nears capacity in the next year to two years. <br /> DRMS accompanied Climax personnel to the gated lower entrance to the McNulty Gulch OSF accessed from <br /> the highway where work to clear and remove timber from the lower topsoil stockpile area was underway <br /> (photos 1 and 2). The new access road at the base of McNulty has been established as previously discussed <br /> with Climax. Topsoil stripping and stockpiling has taken place on an area near the top of the OSF. The <br /> October DRMS inspection will focus on OSF material placement practices and the current condition of the OSF <br /> areas. <br /> DRMS then observed the work taking place on the West Interceptor Ditch between Searle and Kokomo <br /> Gulches. Mine contractors were in the process of replacing the existing corrugated metal underground piping <br /> with 60" corrugated HDPE piping to update and maintain this clean water diversion structure. Additional <br /> information on these improvements can be found in TR28. <br /> DRMS then visited Phase I of the Lake Irwin wetlands mitigation area. Phase I has been fully constructed at <br /> this time, and the planting has been roughly 50% completed (photos 3 and 4). Due to the dry conditions at <br /> the site this year, the ditch constructed to distribute water to the wetlands was not full enough to discharge <br /> through the drain pipes into the wetland area. A pump was being utilized to move water from the ditch to the <br /> wetland as needed for the time being. If low water levels continue to be an issue next growing season, the <br /> bottom of the ditch may need to be partially backfilled so less runoff is required for water to drain into the <br /> wetlands as intended. <br /> DRMS returned to the site offices and met briefly with Climax personnel to discuss upcoming activities <br /> planned for the site, and the submittal of upcoming TR to address these activities. No issues of concern were <br /> 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 />