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112d-3 Annual Report <br />Henderson Mine and Mill (Permit No. M-77-342) Page 2 <br />During the course of 2005, Henderson completed the pipeline for the Bazge pumpback <br />system for recycled process water. The pipeline runs from the back side of the tailing <br />impoundment to the East Branch Process Water Storage Reservoir. The construction of <br />the Barge itself also began in late 2005. It is currently still in the final stages of testing <br />and should be completely commissioned by April. Henderson is planning to abandon the <br />existing decant structures and old mill water return line system within the next year. <br />The Henderson Mill continues to utilize two logging companies. One logger is focusing <br />his efforts on removing timber on the west side of East Branch Reservoir, while the other <br />is concentrating his efforts on the west side of the tailings impoundment and to the west <br />of the road to Lost Creek. The beetle infestation has, for the most part, run its course. At <br />this point there has been considered a total loss on almost all Lodgepole Pine in the area. <br />Henderson's goal for 2005 was to harvest up to 760 acres of timber. By early October of <br />2005, Henderson loggers had successfully harvested 425 acres of timber. Henderson <br />estimates that approximately 150 more acres were harvested by year end for a total of <br />nearly 575. The property remains under agricultural status, as certified by the United <br />States Forest Service. Henderson continues to ground treat, plant, thin as designated by <br />the Forest Agriculture Plan approved by the Colorado State Forest Service. <br />Please contact me at (303) 569-3221, ext. 1287 if I can be of further assistance. <br />Sind/y"`- V <br />Toy cero <br />Environmental Coordinator <br />Henderson Mine <br />cc: Bryce Romig, Henderson Mine <br />Tim Haynes, Henderson Mill <br />