2002-09-20_REVISION - M1977342 - Laserfiche WebLink

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AUG-26-02 09:41AIA FROYrHenderson Nine 2nd Floor 303 569 2830 T-b00 P.004/005 F-169 MINE ID # OR PROSPECTING ID#: M-1977-342 PAGE: 3 INSPECTION DATE: 8-1-02 INSPECTOR'S INITIALS: ACS cyanide as a milling reagent, but may need tp use cyanide in the future depending an mineralogical variations in the are body. CMC may choose to provide a permit commitment to limit or eliminate cyanide storage onsite to lower the bond amount, with a provision that additional cyanide shipments would not be received until the DMG is notified and the bond amount for reagent disposal is adjusted accordingly. CMC mill further commit to limiting potential future disturbance in the so-called buffer acreage to substantially less than the 400-acres currently in the reclamation permit language and used in the AMG's estimate. CMC is also considering changes to the current permit terms relating to tree and shrub planting and will seek approval for onsite disposal of building and structure demolition debris, Since these considerations all relate to changes in the current approved reclamation permit, a technical revision must be filed and approved to incorporate these items into the permit azxd to evaluate the effect of these changes on the amount of the required bond. Once the DMG can incorporate information provided by CMC into the reclamation cost estimate, and changes to reclamation costs related to review and approval of the pending technical revision are also incorporated, it is anticipated that agreement on the amount of required bond will follow_ CMC anticipates that alteztlative bonding instruments will be provided eo supplement the existing $10,133,000.00 Corporate surety bond held by the Mined Land Reclamation Board for the Henderson Mine and Mill. The Board accepts a variety of bonding instruments as listed in Rule 4.3 of the Mineral Rules and Regulations. Azay bond that is to he provided by CMC moat meet the general requirements for financial warranties described in Rule 4.1.2. DMG will work with. CMC leading up to the due date for submittal of the increased bond to assure that the amount of bond to be required is based oa a fair sad equitable estimate of anticipated reclamation costs, and to facilitate submittal of alternative bonding inst~+~ma~ts that will augment the existing corporate surety. Various fluids and devices stored in the underground mine must be removed prior to mine flooding at the conclusion of operations. The initial DMG reclamation cost estimate included the assumption that the mine would have to be pumped for two years in a bond forfeiture situation to allow time for removal of these substances. Based on observations made during a tour of the underground workings, DMG lass fletermizxed that two years of continued pumping would be excessive, as discussed below. The underground levels at the Henderson Mine are designated by their elevation above sea level. Hence, the 7700 mininglevel is located 400 feet below the 8100 level, and so on. The following locations in the mine where fuel, lubricants, solvents, etc. are stored where inspected: • The 7700 level shop, 7700 level lobe station, and 7700 level fuel storage.