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~, <br />Annual Report - 2007 <br />Climax Mine Reclamation Activities <br />Permit No. M-77-493 <br />Significant reclamation, closure, and permit-related activities occurred at the Climax <br />Mine site during 2007. All activities were conducted on affected land areas under the <br />existing permit. The maps attached as referenced in the attached individual reports, show <br />the activities conducted in 2007. <br />1.0 Primary Activities <br />1.1 Sludge Densification Plant <br />Construction work was completed at the Climax Mine Sludge Densification Plant (SDP) <br />in August 2007. Plant commissioning was completed towards the end of November and <br />official plant operation commenced in December. This work was permitted under <br />Amendment AM-OS for the Climax Mine Permit. <br />As part of this project, Climax completed the installation of an upgrade to the existing <br />Lime Station including a ball mill and classifier for grinding and separating lime grit; a <br />minor automation upgrade to Warren's Pump Station; final construction of the SDP <br />facility including all internal tanks, pipes, domestic water system, septic system, power <br />feeds, telemetry, and associated electrical and instrumentation installations. Further, the <br />165-ft diameter clarifier, connected to the SDP by a bridge, was completed and also fully <br />operational in December. All construction work was approved by the Summit County <br />Building & Inspection and Public Health Departments and implementation of the plant's <br />domestic water system was approved by the Colorado Department of Public Health and <br />the Environment (CDPHE). <br />As part of the overall project, over 7 miles of high density polyethylene (HDPE) pipe <br />were installed, over a mile of new overhead power lines, 2 miles of buried fiber optic <br />cable, and a new pump station at the toe of No. 3 Dam capable of pumping 15,000 <br />gallons per minute (gpm). The SDP has a design capacity of 6,900 gpm; hence during <br />peak flow periods (spring runoff), excess flows will be diverted around the SDP and <br />directly into Tenmile Tailing Pond, as before. <br />If required, additional details and photographs of the SDP Project completion can be <br />obtained from the mine. <br />1 <br />