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PERMIT#: M-1977-493 <br /> INSPECTOR'S INITIALS:ECS <br /> INSPECTION DATE: September 11,2019 <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, signed in with site security and <br /> updated the Site Hazard Certificate at the site entrance facility, and then met with Climax representative <br /> Diana Keltz at the New Mill Building. <br /> The inspection started with a brief site discussion with Climax personnel, followed by an underground <br /> tour/inspection of the work taking place at the Mayflower Bypass Tunnel as approved in TR29 (photos 1-3). <br /> The waste spoil disposal area for the Mayflower Bypass extension was also inspected, as well as the nearby <br /> PWDTP sludge disposal cell, which was recently enlarged by raising the berm as approved in TR29 (photo 4). <br /> This sludge cell expansion should provide for several more years of sludge capacity. <br /> DRMS also noted the area for the second Mayflower Bypass Tunnel riser has been cleared in preparation for <br /> construction, and Climax stated that the final construction designs for the second Mayflower Bypass Tunnel <br /> riser would be provided to DRMS for review in a TR to be submitted in late 2019 or early 2020. The topsoil <br /> around the perimeter of the Mayflower TSF has been stripped and stockpiled within approximately 50' of its <br /> current elevation, and the Mayflower TSF pump barges have also been moved to their new location. <br /> The inspection proceeded to the base of the McNulty Gulch TSF, where work to support the expansion of the <br /> facility as approved in TR25 is underway. DRMS noted the topsoil stockpile area at the toe of the facility was <br /> prepared and in use, and that the downstream sediment containment berm was in place (photo 5). During this <br /> inspection the contractor was on-site installing contact water collection pipes C1 and C2 (photo 6). Additional <br /> timber clearing and topsoil stripping for the McNulty Gulch OSF will be conducted on an as-needed basis as <br /> work progresses to minimize the total area disturbed to minimize erosion and sediment run-off. <br /> DRMS noted a small area of slope failure at the toe of the existing McNulty Gulch OSF (photo 6). Climax <br /> personnel stated that they were aware of the movement, have had it evaluated for stability, and continue to <br /> monitor the area. It was determined that the failure was a shallow surface failure, and that no further <br /> movement was taking place at this time. DRMS recommends that Climax continues to closely monitor the toe <br /> of the existing dump during the expansion of the facility for any further movement or instability. <br /> The Lake Irwin wetland mitigation area is scheduled for expansion in the 2020 work season to support the <br /> continued construction of the McNulty Gulch OSF expansion. <br /> Mining at the time of the inspection was taking place both in the pit, and in Phase 4 outside of the pit on the <br /> northwest flank of Bartlett Mountain on the upper rim of the pit. No issues of concern were noted during this <br /> inspection. <br /> Inspection Contact Address <br /> Diana Kelts <br /> Climax Molybdenum Company <br /> Highway 91,Fremont Pass <br /> Climax,CO 80429 <br /> Page 2 of 3 <br />