2024-05-17_REVISION - M1977493 (4)

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G-1 Introduction The management of water at the Climax Mine is critical to the operation of the site and to maintain compliance with permits and regulatory requirements. For many years, significant resources have been directed toward the development of water handling and treatment systems. The configuration and operation of these systems are described in this exhibit. Also described are the current conceptual plans for development of the water handling systems through reclamation and closure. Because the handling of tailing is intricately related to the water systems at the site, a description of the development plans for the tailing delivery and deposition facilities are also included. By reference from other exhibits, water handling associated with the Mine Plan and Reclamation Plan is discussed herein. This is an update to the original Exhibit G submitted to DRMS as part of the Climax Mine Permit Amendment 6 application in 2010. Climax Mine production resumed in 2012 and the mine has operated on a continuous basis since that time. The current condition described herein represents the system configuration in 2023, which is similar to the Phase II Production scenario described in the original Exhibit G. The previously described Phase I Production scenario has been completed. Water management at the Climax Mine site includes a variety of systems,each designed to perform a specific function or set of functions. These systems include: ■ Mill water supply system, ■ Tailing slurry delivery systems, ■ Impacted water containment and collection systems, ■ Impacted water treatment systems, ■ Fresh water interceptor and bypass systems, ■ Domestic water systems, ■ Stormwater management systems, and ■ Flood control and protection systems. The primary functions of the various water systems include: ■ Supplying the necessary water to the Mill for operation, ■ Delivery and settling of tailing materials, ■ Maintaining the pond levels within prescribed dam operation and safety limits, ■ Releasing and storing water in accordance with the decreed water rights, ■ Minimizing impacting fresh waters on the site, ■ Diversion of fresh water into the system when necessary, and ■ Discharge treated water off the property in accordance with the National Pollutant Discharge Elimination System (NPDES) permit. At the Climax Mine, process water is broadly defined as the waters that occur below the fresh water interceptor system, may be used as part of reclaim mill water for processing molybdenum, have come in contact with mine tailing or mine waste rock, and require treatment prior to discharge into the natural stream system (i.e. Tenmile Creek). Process water also includes precipitation runoff below the interceptor system that mixes with impacted waters and must therefore also be treated prior to discharge. The process water system is made up of a complex network of water storage, reclaim, and conveyance facilities and is summarized in subsequent sections of this exhibit. Mineral production at the Climax Mine resumed in 2012 and the water systems have gone through the transition from a non-producing mine site to the current full production condition. The presentation of the development and operation of the water systems at the site has generally been divided into two phases defined by the mineral production conditions at the mine. The first phase is the Current configuration,which Exhibit G G-1 May 2024