2008-03-07_REPORT - M1977342 - Laserfiche WebLink

Home Browse Search

1 12d-3 Annual Report Henderson Mine and Mill (Permit No. M-77-342) The Henderson Mill continues to, intermittently, utilize two logging companies. Both contractors are currently not operating on the property and have found an overall lack of merchantable timber in the area. The foreseeable end of the logging operations is rapidly approaching. Henderson is exploring the use of a brush/slash piling contractor to clean up areas where junk timber clutters the forest floor. Henderson continues to ground treat, plant, thin as designated by the Forest Agriculture Plan approved by the Colorado State Forest Service. Annual weed treatments continued around the tailing area, in the Lost Creek area and around the mill site. Common species treated in this effort include: Canada thistle, Musk thistle, scentless chamomile and oxeye daisy. A treatment was made in July, and then again in October to manage the targets species at varying stages of development. The construction of the ultimate canal was completed during the summer of 2007. The canal was hydroseeded following the completion and will be seasoned until the level of the tailing impoundment comes within range of the invert of the existing interceptor canal. The new canal links the historic Ute Creek at the 8900' mark to the existing outfall. The 3-Dam Seepwater line leak down test was completed. On June 26, 2007, the intake valves for the seep water system were closed to determine if the valves were sealing efficiently. It was determined that the valves were not seating and were replaced. The discharge valves were tested by closing the valves and filling the lines with water. The pressure reading on the main pipeline was 70 PSI. A leaking valve on the O/F line was discovered on June 27, 2007, and the line was drained and the gasket was replaced. The line was refilled on June 28, 2007, and held 70 PSI. The drain and intake valves were locked out in the closed position for the duration of the test. The pressure was taken on June 29, 2007, and the gauges continued to read 70 PSI. The valves were locked out over the weekend and the pressure reading on July 2, 2007, was still at 70 PSI. After the test, the system was put back into normal operation. For your reference, please find enclosed a copy of a third party letter from W.W. Wheeler and Associates, Inc. The letter provides an update of the market value of Climax Molybdenum Company water rights owned by the Freeport -McMoRan Company which are collateralized as part of the Henderson Mine and Mill financial assurance. As stated in the letter there have been no substantial changes in the amount of water represented by the Henderson Mill water rights or in the unit value of the water rights. Therefore, the analyses and concussions set forth in the September 2002 report entitled, "Valuation of Henderson Mill Water Rights" continues to be reasonably accurate and representative of fair market value as of February 2008. The finical assurance for Henderson Mine and Mill remains adequate for reclamation. Please contact me at (303) 569-3221, ext. 1539 if I can be of further assistance. Sincerely, William Katz Environmental Coordinator Henderson Mill