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<br />CLIMAX MOLYBDENUM COMPANY <br />A eubeitliery of PNbs Ootlpe Corporation <br />March 6, 2001 <br />Via United Parcel Service -Overnight Delivery <br />Mr. Bruce Humphries, Minerals Chief <br />Division of Minerals & Geology <br />Department of Natural Resources <br />1313 Sherntan Street, Room 215 <br />Denver. CO 80203 <br /> <br />Hende~•son Oeerations <br />FO Bon 68 <br />Empire. Colorado 80436 <br />[3031 569-3221 <br />Fax [3031 569-2930 <br />RECE~VEp <br />MAR C 7 2n^1 <br />DiYision of Minel,.i: a:,: <br />RE: 2000 ANNUAL REPORT 112d-3 ANUAL REPORT - HENDERSON MINE <br />AND MILL (PERMIT NO. M-77-342) <br />Dear Mr. Humphries: <br />Included is the Colorado Division of Minerals and Geology (DMG) Annual 112d-3 <br />Report for Climax Molybdenum Company's Henderson Mine and Mill (Permit 1` o. M- <br />77-342), and our check for the $1,000.00 annual fee. Below is a summary of interim <br />reclamation activities conducted during 2000. <br />Mine Site <br />There were no new disturbances at the Mine in 2000, nor do we expect any new <br />disturbances in 2001. Although we did not complete what might be considered <br />conventional reclamation at the Mine this past year, during 2000 we completed <br />remedia[ion of PCB transformer storage azeas underground. This followed remo~~al of <br />the transformers the previous year. These activities were completed in accordance with <br />all applicable regulatory requirements, including those imposed by the U.S. <br />Environmental Protection Agency (EPA) and the U.S. Department of Transportation <br />(DOT). Similarly other transformer-storage areas along the haulage corridor were: also <br />remediated. Additional detail on reclamation completed at the millsite follows. <br />Mill Site <br />The tailings basin water pool increased to an elevation of 8,806 feet, which increased our <br />disturbed acreage in 2000 to 995 acres, from 987 acres in 1999. Based on past fly-over <br />survey information, Henderson has good information to support the claim that we are <br />over-estimating our total disturbance by approximately 60 acres. Henderson anticipates <br />the Division of Minerals and Geology revisiting our bond calculation numbers in the near <br />future at which time we hope to clarify this issue. The Henderson Mill continues to log <br />the remaining forested areas around the tailings impoundment that will be inundated by <br />life of mine. We anticipate completion of this project by the 4"' quarter of this year. The <br />