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<br />® CLIMAX MOLYBDENUM COMPANY <br />4 Subsitlmry of Pneips eDtlBD MininD Company <br />March 7, 2000 <br />Via hand delivery <br />Mr. Bruce Humphries, Minerals Chief <br />Division of Minerals & Geology <br />Department of Natural Resources <br />1313 Sherman Stree[, Room 215 <br />Denver, CO 80203 <br />• <br />Henderson Operations <br />ao. eox se <br />Empire. Colorarlo 80438 <br />Alecro (3031 271-0107 <br />Ouc of Scace [3037 569-3221 <br />Fax (3031569-0930 <br />RE: 1999 ANNUAL REPORT 112d-3 ANUAL REPORT - HENDERSON MINE <br />AND MILL (PERMIT NO. M-77-342) <br />Dear Mc Humphries: <br />Included is the Colorado Division of Minerals and Geology (DMG) Annual 1 12c.-3 <br />Report for Climax Molybdenum Company's Henderson Mine and Mill (Permit 1`Io. M- <br />77-342), and our check for the $1,000.00 amoral fee. Below is a summary of interim <br />reclamation activities conducted during 1999. <br />Mine Site <br />There were no new disturbances at the Mine in 1999, nor do we expect any new <br />disturbances in 2000. Although we did not complete what might be considered <br />conventional reclamation at the Mine this pas[ year, during 1999 and the beginning of <br />2000, we removed the 10 remaining PCB transformers from the minesite. Seven of these <br />transformers were located underground, and three on the surface. These activities were <br />completed in accordance with all applicable regulatory requirements, including those <br />imposed by the U.S. Environmental Protection Agency (EPA) and the U.S. Department <br />of Transportation (DOT). Similarly, three PCB transformers were removed from the <br />millsite. Additional detail on reclamation completed at the millsite follows. <br />Mill Site <br />The tailings basin water pool increased to an elevation of 8,804 feet, which increased our <br />disturbed acreage in 1999 to 987 acres, from 963 acres in 1998. As reported last year, <br />Henderson now has better information, due to fly-over surveys, and can now mo1•e <br />accurately depict the Mills tailings area disturbances. We still feel that we are over- <br />estimating our total disturbed acres by approximately 60 acres. We hope to further <br />clarify this issue in the near fuh7re. The Henderson Mill is planning to log out the <br />remaining forested areas that will be inundated with tailings by life of mine this summer. <br />