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MINE ID # OR PROSPECTING ID#: M-1977-342 PAGE: 2 <br />INSPECTION DATE: 5-10-2004 INSPECTOR'S INITIALS: ACS <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Minerals and <br />Geology's (DMG) ongoing assessment of the water rights and facilities deeds of <br />trust offered by Henderson to supplement the existing corporate surety <br />reclamation bond. DMG and Henderson have agreed to independent legal and <br />engineering reviews of the ownership and value, of the water rights and <br />fem..; i ; r; o~ T.,m w; i i ; ~m~o„ „f uoi rr,,, a.,,; w; i i ; =msen P C has been engaged to -- <br />conduct the independent engineering review of the valuation of the water <br />rights and facilities; Mr. Williamsen has engaged Ed Mighell of Stantec <br />Consulting as a subcontractor to evaluate the utility and condition of .the <br />Williams Fork Pump Station. This inspection was conducted to familiarize Mr. <br />Williamsen and Mr. Mighell with the site and to inspect water storage and <br />water management facilities. The following is the chronology for this <br />inspection. <br />1. Erich Bower of Henderson provided the independent consultants an <br />overview of Henderson water rights and water management. <br />2. The Ute Creek and East Branch Reservoirs were inspected. <br />3. The Williams Fork Pump Station was inspected. <br />4. Henderson archive drawings of the Williams Fork Pump Station were <br />reviewed. <br />The Williams Fork Pump Station is located on Henderson property on the left <br />bank of the Williams Fork River. The facility has an inlet from and outlet to <br />the river and two large vertical turbine pumps that feed a 24 inch steel <br />pipeline that connects to the 36 inch--mill--water -retu-rn pipeline, -which <br />outlets to the East Branch Reservoir. The pump station also houses two <br />smaller pumps that feed a 6 inch pipeline to the mill potable water tanks. <br />The condition, mechanics, and utility of the pump station will be described in <br />the draft report from the independent consultants currently scheduled for <br />submittal the third week of June 2004. <br />cc: Anne Beierle, Climax (via email) <br />Tom Williamsen (via email) <br />Ed Mighell (via email) <br />Carl Mount, DMG (via email) <br />I & E Contact Address <br />P7AME Erich Bower <br />OPERATOR Climax Molybdenum Company <br />STREET 19302 County Road 3 <br />CITY/STATE/ZIP Parshall, CO 80468 <br />