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(Page 2) MINE ID # OR PROSPECTING ID # M-77-493 INSPECTION DATE 9-28-93 INSPECTOR'S INITIALS ACS OBSERVATIONS The scope of this inspection was quite broad in that I had never inspected the mine in the capacity of a reclamation specialist, and will be assuming lead responsibility for the site £rom Gregg Squire. To a large extent, the purpose of this inspection was to gain an overview of all aspects of the operation. The scope of this inspection report, on the other hand, is somewhat limited in that I have yet to review the Division's Climax Mine file. The file is currently checked out to Tom Gillis in the Durango Office as he is reevaluating the reclamation costs for this site. 1. The underground-levels, open pit, and mill are shut down at this time. On-going activities at the site include water treatment, structural demolition, tailing dam capping and revegetation, ditch and berm maintenance, and general site maintenance and reclamation activities. in addition, the operator has completed or is working on several act iv it iea related to resuming production. Even though there is no mining or milling taking place at this time, it does not appear that temporary cessation statue would be appropriate given the level of activity observed. The operator may have to file a Notice of Temporary Cessation at some future point; this would be addressed in future inspection reports. The operator is referred to Rule 1.6 of the Mineral Rules and Regulations for details on the regulatory aspects of cessation and termination. 2. The open pit and Storke Level Facilities areas were inspected. Material from a large slide on one of the pit walls has been used to construct the McNulty cofferdam which was placed directly on tailings. A large amount of ore has been blasted in the pit and is ready to be transported to the crushers once production resumes. Mine water is pumped vp from the Storke Level to the Climax Camp where it is treated with lime. The operator will be requesting reclamation responsibility for the area east of Arkansas Lake, and is referred to Rule 7.7(2) for details on release requests. 3. The McNulty cofferdam, as mentioned above is constructed of slide material. Differential settling of the fill into the tailings was observed. 4. The operator has demolished a number of buildings on the site in recent years. The Division requires an updated inventory of buildings remaining at the site, including their locations and cubic footage, and a listing of buildings that have demolished with their locations. Tom Gillis, of the Division's staff, will be preparing a list of additional information required for the on-going bond review.-The list should be ready in the next few weeks and will include the type of information required about the conveyors at the site that was discussed during this inspection. 5. Reclamation on the face of Dam #1 was examined. The outslope of the dam was graded to an overall slope of 4:1. The dam face was then plated with approximately 3 ft. of slide rock from the open pit and seeded. Lime was sporadically applied to the surface of the plated area to neutralize the acid production potential of sulfides in the rock used to face the dam. The results of lime application would likely be more successful if the lime were to be incorporated into the facing material by discing or light ripping. The sporadic nature of the lime application and the failure to incorporate the lime into the cover material was a result of time constraints caused by weather. 6. Wind erosion of dry, exposed tailings continues to be a primary concern at the Climax Mine. The operator applies Coherex, an asphalt-water emulsion, to accessible tailings surfaces to minimize wind erosion and blowing dust. The operator is referred to C.R.S. 34- 32-116(7)(1) which states: All surface areas of the affected land, including spoil piles, shall be stabilized and protected so as to effectively control erosion and attendent air and water pollution.