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STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832$106 Climax Molybdenum Mine Status Permit No. M-1977-493 May 30, 2007 Executive Summary: COLORADO DIVISION OF RECLAMATION MIN[t~IG - &- SAFETY Bill Ritter, Ir. Governor Harris D. Sherman Executive Director Ronald W. Cottony Division Director Natural Resource Trustee The Climax Molybdenum Mine is located within a 14,300 acre private land holding at the top of Fremont Pass in Lake, Summit, and Eagle Counties. The mine commenced operations during World War I, and after a brief hiatus following the waz, was in continuous production from the 1920s through the mid 1980s. Since then, with the exception of a brief period of production in 1995, the mine has been in care and maintenance while conducting substantial reclamation work to the extent possible without significantly interfering with future mining plans. Climax is currently examining the feasibility of resuming production with a decision expected in late 2007 and the potential to restart production from the open pit in late 2009. Mining and mill tailing disposal over the life of the operation has affected 3700 acres located in the headwaters of the Arkansas and Eagle Rivers and Ten Mile Creek (refer to the attached map). Reclamation work at Climax summarized by location is as follows. The Oxide Tailing Pond at the head for the Eagle River was reclaimed to a fresh water storage reservoir by removing 1.2 million cubic yards of tailing disposed therein and consolidating the excavated tailing into the Ten Mile Tailing Pond. Aground water cutoff wall above the reservoir and dam seepage control measures below the reservoir were other components of this project, which was awazded the Year 2000 Reclamation Award by the Colorado Mined Land Reclamation Board. The Robinson Pond tailing surface is being reclaimed by stabilization and capping using geogrid and open pit waste rock, application of agricultural lime, incorporation of biosolids, and seeding with a high altitude herbaceous mix. The biosolids project at Climax accepts 100 percent of the sewage sludge produced in Summit County and manufactures both a Class A composted pathogen free biosolid for use as a soil substitute throughout the mine site, and a Class B biosolid for use on the runoff controlled surface of the Robinson Tailing. The Climax biosolids program was awarded the Year 2003 Reclamation Award by the Colorado Mined Land Reclamation Board. Other significant components of this project are water surface elevation and flood control facilities, and tree and shrub planting, including transplantation ofmature trees. The Storke Yard is located at the headwaters of the Arkansas River, and was the primary staging and access area for underground mining. The yard was reclaimed through extensive building and paved surface demolition, including asbestos and hazardous materials segregation and onsite disposal ofnon-hazardous debris in a lined and leachate controlled pit. The area was then graded, seeded, and planted to trees and shrubs. Maintenance applications of Class A biosolids and fertilizer are ongoing. Other significant aspects of this reclamation project are control of the mine pool elevation in the flooded underground workings by pumping and treatment of water in the No. 5-Shaft, and collection and treatment of all Storke Yard runoff water and seepage. Reclamation will commence in 2007 to daylight 2000 feet of the Arkansas River that has been confined to a culvert through the Storke Yard since 1980. Office of Office of Mined Land Reclamation Denver Crand Junction Durango Active and Inactive Mines