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MINE ID # OR PROSPECTING ID#: M-1977-342 PAGE: 2 <br />INSPECTION DATE: 11-8-06 INSPECTOR'S INITIALS: ACS <br />OBSERVATIONS <br />Horizontal drain installation for improved phreatic surface control in <br />the tailing impoundment was inspected. Most of the drains that have <br />been installed are exhibiting substantial flow demonstrating their <br />effectiveness. The project contractor is using a compact horizontal <br />drill rig that is capable of installing several drains per day. A <br />quality assurance engineer independent of the contractor was on site <br />observing the work. <br />The new surface water interceptor ditch above the tailing pond was <br />inspected. Considerable progress on the construction of the ditch has <br />been completed, with essentially all of the project having been graded <br />to the design lines. Henderson has provided the Division with a <br />winterization plan for the project. Construction of the ditch will be <br />completed in the 2007 construction season. <br />The barge pump facility was inspected. These pumps return tailing pond <br />water to East Branch Reservoir for recycling to the mill. This system <br />replaces the tailing water decant system, and is a considerable <br />Environmental Protection Facility upgrade, reducing environmental risks <br />relative to containment and control of process water and stability of <br />the tailing impoundment. The decant lines have been grouted closed. <br />The Henderson landfill was inspected. No unacceptable trash was <br />observed. However, certain items such as corrugated cardboard that <br />could better be managed through the Henderson recycling program 'had <br />been dumped. The Division suggests that a sign listing unacceptable <br />items be posted at the landfill site. Such a sign was present at the <br />previous landfill location; a picture of the sign taken during an <br />inspection on 3-24-2003 is included as photo no. 15 attached to this <br />report. <br />Observations made during this inspection demonstrate Henderson's <br />continued exemplary compliance with the terms of their reclamation <br />permit and the Colorado Mined Land Reclamation Act. No problems or <br />potential violations were observed. <br />cc: Carl Mount, DMG (via email) <br />Inspection & Enforcement Contact Address <br />NAME Tim Haynes <br />OPERATOR Climax Molybdenum Company <br />STREET 19302 County Road 3 <br />CITY/STATE/ZIP Parshall, CO 80468 <br />