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MINE ID # OR PROSPECTING ID#: M-1977-342 PAGE: 3 INSPECTION DATE: 8-11-03 INSPECTOR'S INITIALS: ACS approved mix. The other four plots will incorporate different combinations of soil and soil amendments, e.g. composted biosolids produced at the Climax Mine. All of the plots are to be hydro seeded. Henderson will provide the DMG with a copy of the test plot plan. 4. The Henderson gravel pit was inspected. Crushing was underway to produce aggregate for the construction of the haul road approved through technical revision TR-13. Additional crushed aggregate will be produced and stockpiled in the pit for future use. It was observed that several acres of water is ponded in the pit. A discussion was held relating to the State Engineer's requirements to augment for evaporative loss of water exposed in gravel pits after January 1, 1981. The water in the Henderson Gravel Pit was exposed prior to the regulatory date, and hence is grandfathered. Henderson recognizes to the need to augment if deepening or enlarging of the pit in the future exposes any additional water. 5. Henderson intends to install a barge pump in the tailing pond to replace the decant system. The timing for this project depends on budget approval by the parent corporation. The corridor for the barge gump pipeline been surveyed and staked using a GPS unit. Some minor timber removal in the upper part of the corridor has been completed; most of the trees that would have to be removed for the pipeline corridor are beetle kill isee discussion below). Henderson will be submitting one or more technical revisions to the reclamation permit to include the barge pump and appurtenances as environmental protection facilities. Among the issues to be addressed are the plugging and abandonment of the decant lines and how the emergency spillway functions of the decant lines will be replaced. 6. The large topsoil stockpile located off the shoulder of Grand County Road 3, near East Branch Reservoir, was inspected. This is topsoil that was salvaged during the Henderson 2000 ore conveyor project. The north facing slope of the stockpile is thoroughly vegetated; the south facing side of the pile is sparsely vegetated, but there are no signs of erosion on the pile. 7. As part of the Henderson 2000 project, the ore crushing operations were relocated from the mill to the underground mine. Once this relocation was completed, Henderson salvaged and reclaimed the mill site crusher facility. Initial backfilling of the mill site crusher pit was done in 2001. Each subsequent spring, settlement of the backfill materials has necessitated additional placement and mounding of backfill. During this inspection, the mound of backfill placed during 2003 was observed. Annual backfilling will be required until settlement of the materials has ceased.