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PERMIT #: M-1977-342 <br />INSPECTOR’S INITIALS: JR2 <br />INSPECTION DATE: November 7, 2024 <br />Page 2 of 9 <br />OBSERVATIONS <br />The Henderson Mine was inspected by Joel Renfro with the Division of Reclamation, Mining and Safety <br />(Division/DRMS) on November 7, 2024, as a part of its monitoring program. Ron Hickman and Ben Bates <br />represented Climax Molybdenum Company and were present during the inspection. Photos 1-10 were taken <br />during the inspection and are included with this report. <br />The weather during the inspection was clear, but this area received some snowfall the previous day and that <br />morning, so a few inches of snow covered most of this site. Every structure was still visible. <br />This inspection is the final one for 2024. The goal of this inspection was to observe new structures from TR-36 <br />and other features of the mill that had not been looked at previously this year. The following were observed: <br />Extraction Wells MLEX-6 and MLEX-7 <br />It was noted in the September 25, 2024 inspection report that a drill rig was on-site for the installation of <br />MLEX-6. Both wells have been installed since then. These wells were added in TR-36, which was approved on <br />September 5, 2024, as a part of the Phase IV upgrade to the Ute Park Extraction Wellfield. MLEX-6 has been <br />drilled and installed inside the Ute Park, just east of the MLEX-3, 4, and 5. MLEX-7 has been drilled and <br />installed inside the gravel pit located east of County Road 3. The caps of each well were visible, even through <br />the snow. <br />Barge and Return Pipeline <br />The pipeline was followed from the barge to the East Branch Reservoir. Most of the pipeline is underground, <br />but key support features that are above ground were documented during this inspection. Water is pumped from <br />the barge until it reaches a high point, which is marked above ground with the vacuum vault. After that point, <br />the water moves through the rest of the pipeline using gravity until it’s discharged into the East Branch <br />Reservoir. Water is discharged into the reservoir from the south. There are diversions around the reservoir that <br />lead to a pipeline to keep water away from the East Branch, which reduces runoff leading into the reservoir and <br />preserves the tailings dam to reservoir closed loop water system. <br />Once per year, about 4-5 pipe pigs are propelled through the pipeline. This process aids in preventing scaling <br />and helps maintain flow capacity. Pressure checks are conducted to ensure integrity. <br />Material Deposit in Tailings Dam <br />To create positive drainage in the tailings dam, tailings material is being deposited at the southern end of the <br />dam. This was observed and actively occurring at the time of inspection. <br />Mill Process Water Storage Tanks <br />There are two large storage tanks and two smaller ones north of the Mill facilities. The larger tanks store water <br />that is used in the Mill processes and the smaller tanks store water that is used for showers, sinks, etc. These <br />tanks are drained and inspected every few years by Henderson staff to check for any issues such as leaks or <br />tears in the lining.