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J W. W. Wheeler and Assoc., Inc. <br />Water Resources Engineers <br />February 26, 2010 <br />Mr. Miguel Hamarat <br />Climax Molybdenum Company, Henderson Mine <br />P. O. Box 68 <br />Empire, CO 80438 <br />Re: #1333.0 - Henderson Mill <br />Tailing Pond Flood Storage <br />Dear Miguel: <br />As requested, we have evaluated the availability of flood storage capacity in the <br />Henderson tailing impoundment using information from the fall 2009 pond survey. The <br />survey of the beach area was performed by Henderson personnel in October and the pool <br />area was surveyed by Henderson on October 27. Figure 1 is the pond contour map that <br />was generated by Wheeler from the survey point data. The survey shows that the <br />average dam crest elevation of No. 1 Dam at the end of the spigot deposition season is <br />about 8,848.9 feet, which is a 2.4-foot increase from last year. The minimum elevation <br />surveyed along the dam crest was 8,848.38 feet. This information, as well as other <br />characteristics of the pond, is summarized in the table in the upper right-hand corner of the <br />pond map drawing. Figure 2 is the elevation-capacity curve for the water pool that was <br />generated from the contour map. Note that this curve is representative of the pond at the <br />time of the pool survey and changes continuously as additional tailing is deposited. The <br />capacity data is presented in tabular format in Table 1. <br />One of the primary uses of the fall survey data is to evaluate the flood storage capacity <br />conditions in the water system. As summarized on Figure 1, at the approximate time of <br />the survey (end of October) there was a total system surcharge storage capacity of about <br />7,306 acre-feet in the system. This capacity includes both the tailing pond and East <br />Branch Reservoir and is based on the minimum dam crest elevation of 8,848.38'. The <br />current flood storage requirement for the system is 3,582 acre-feet. This requirement is <br />3700 South Inca Street Englewood, Colorado 80110 Phone (303) 761-4130 Fox (303) 761-2802