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MINE ID # OR PROSPECTING ID#: M-1977-342 PAGE: 2 INSPECTION DATE: 3-24-03 INSPECTOR'S INITIALS: ACS OBSERVATIONS The Division of Minerals and Geology (DMG) is currently reviewing amendment AM-04 to the reclamation permit for the Henderson Mine and Mill. This inspection fulfills the requirement of Rule 3.2(7), 2 CCR 407-1 to conduct an inspection of all sites where a regular permit amendment has been filed. In planning for topsoil salvage and existing stockpile relocation operations to be conducted in the tailing basin this summer, Henderson determined that one of the large topsoil stockpile locations illustrated in the reclamation permit maps is untenable. This location was inspected, and although vision was obscured by snow and windy conditions that limited the inspection, the DMG agrees that the current approved site is too steep for topsoil stockpiling and that more attractive sites for stockpiling are available in the vicinity. Henderson has identified and evaluated one such location. This proposed new stockpile location was inspected. Inspection of the uphill perimeter of the proposed site was prevented by deep snow. However, the proposed site appears to be considerably superior to the permitted stockpile site. The proposed site is gently sloping and it appears that the stockpile would be preserved from erosion and that disturbance by ongoing milling operations will be minimized (Rule 3.1.9(3)). The proposed stockpile location and stockpiling plan must be incorporated into the reclamation permit via a technical revision prior to commencement of the 2003 topsoil project (Rule 3.1.9(4)). Trash management and recycling operations at Henderson were inspected. Technical revision TR-12 to the Henderson reclamation permit was approved on 1-23-03. One of the elements approved in TR-12 is the onsite disposal of inert debris to be generated at the time of building and structure demolition once the mill is decommissioned. One of the locations approved for disposal of this debris is the current active Henderson landfill site. This landfill is located off the knob of bedrock at the triple junction of tailings dams Nos. 1, 2 and 3. On the date of this inspection, Henderson provided DMG with a mill site map showing the locations of each landfill site used by Henderson beginning in 1975. There are 9 landfill locations in total, with the current exiting landfill being designated as landfill no. 7; all of the other landfills have been decommissioned. Landfill no. 9 is located at the Henderson tunnel portal; with the exception of landfill no. 9, all of the landfills are located upgradient of Henderson tailing dams nos. 1 or 3. The vast majority of the affected land at the Henderson Mill is located within the Ute Creek drainage basin. The tailing dams straddle the Ute Creek valley above its confluence with the Williams Fork River. As a