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J W. W. Wheeler and Assoc., Inc. <br />Water Resources Engineers <br />September 25, 2009 <br />Mr. Curtis Brown <br />Climax Molybdenum Company, Henderson Mill <br />19302 County Road 3 <br />Parshall, CO 80468 <br />Re: #1333.0 - Henderson Mill <br />Spring Tailing Pond Survey <br />Dear Curtis: <br />We have completed our evaluation of the spring 2009 survey of the Henderson tailing <br />impoundment. The survey of the beach area and the water pool was performed by <br />Henderson surveyors in May, before spigot deposition began on No. 1 Dam. Figure 1 is <br />the pond and beach contour map that was generated by Wheeler from the survey point <br />and contour data. Note that the beach contours in the No. 3 Dam area had to be <br />approximated since spigot deposition was taking place in this area and it was inaccessible <br />to surveyors. As expected, the survey shows that the average dam crest elevation of No. <br />1 Dam at the time of the survey is similar to the elevation at the end of the spigot <br />deposition season in 2008. This information, as well as other characteristics of the pond, <br />is summarized in the table in the upper right-hand corner of Figure 1. Table 1 is the <br />elevation-capacity table that was generated from the contour map. Note that this table is <br />representative of the pond at the time of the pool survey and changes continuously as <br />additional tailings are deposited. Figure 2 is a plot of the elevation-capacity data. <br />The beach survey was performed prior to the construction of the deposition berm, which <br />was constructed i n June. The material used to construct the deposition berm was <br />borrowed from the beach area nea the dam crest. This practice effectively lowers the dam <br />crest elevation, which we have defined as the beach elevation at the toe of the deposition <br />berm. This lowering of the dam crest was accounted for in our analysis by using the <br />beach elevation at 150 feet out from the berm as the modified crest elevation. This <br />3700 South Inca Street Englewood, Colorado 80110 Phone (303) 761-4130 Fox (303) 761-2802