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AUG-26-02 08:41A19 FR06~Nenderson Nine 2nd Finor 303 568 2630 T-400 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 to use cyanide in the future depending on mineralogical variations in ehe are body. .CMC may ch__ D`ose` to provide a permit commitment to limit or eliminate cyanide storage oasite to `-Tower the bond amount, with a provision that addi_tional-cyanzde-shipments would not be received" until the DMG is notified and the bond amount for =eageiit disposal is adjusted accordingly. CMC mill further commzt to limiting ~poteri£ial-future 3i`sturbaace in the so-called buffer acreage to substantially less than the 400-acres currently in ehe reclamation permit Language and used in the AMC3'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 is the current approved reclamation permit, a technical revision must be filed and approved to incorporate these items into the permit and 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 £ollow_ CMC anticipates that alternative bonding instru~ats will be grovided 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 Regulatiozis_ Any bond that is to be provided by CMC moat meet the general requirements for Ptnancial 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 oaz a £air and ecn~itable estimate of anticipated reclamation costs, and to facilitate submittal of alternative bonding ln6L~~mAnta that will augment the existing corporate surety. Various fluids cad devices stored is the underground mine must be removed prior to mine flooding at the conclusion o£ 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. Rased on observations made during a tour of the underground workings, DMG has fletermined that two years of continued pumping would be excessive, as discussed below. The underground levels at the Henderson Mint are designatefl by their elevation above sea level. Hence, the 77D0 mining level is located 400 feet below the 8100 level, and so on. The fallowing looations in the mine where fuel, lubricants, solvents, etc. are stored where inspected: • The 7700 level shop, 7700 level lobe station, cad 7700 level fuel Storage.