1995-08-11_REVISION - M1977493 (9)

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concentrates at the adjacent mill site. The final product is molybdenum disulfide (MoS2) • concentrate which is transported out of the state for final processing. The Climax Mine, mill, and ancillary facilities are located near the summit of Fremont Pass (elevation 11,3181 msl) where Colorado State Highway 91 crosses the Continental Divide. The mine is located 18 miles south of Frisco, Colorado and 13 miles north of Leadville, Colorado. The site historically altered three drainages on both sides of the Continental Divide and encompasses the upper reaches of three major drainages: the Arkansas River, East Fork of the Eagle River, and Ten Mile Creek (the most affected). All acreages affected by mine and mill operations lie completely within a contiguous 14,300 acre land block owned by the Climax Molybdenum Company. Site maps and maps of affected acreages are located in the 1989 Amendment to the Mining and Reclamation Permit(Appendices A and D). The Climax boundary and affected areas also are located on Figure 1 in the EPP. The Climax Mine began underground operations in 1917 and operated intermittently until the 1920s when continuous mining and milling commenced. When Climax was originally permitted under the Colorado Mined Land Reclamation Act in 1977, production from the mine was approximately 50,000 tons per day from both underground and open pit operations. The estimated mine life at that time indicated exhaustion of ore reserves in the year 2020. These estimates were premised on maintaining then current production rates on an uninterrupted schedule. However,when the world market for molybdenum declined dramatically in the early to mid-1980s, economics forced Climax to curtail production and development substantially. In 1989, the reclamation permit was amended to better reflect the realities of long-term limited production. This amendment addressed the role of Climax as a present and future "swing producer" with limited and declining underground production and the ability to produce from the open pit in the future. To date, this role remains generally unchanged. Underground operations have been terminated and equipment removed. The ability to mine from the open pit and produce concentrate through the mill circuit has been maintained. Since the 1989 amendment, and continuing to date, a significant number of closure and reclamation activities have occurred at the site. The Mayflower tailing impoundment and No. 5 Dam have been capped and vegetated (this tailing impoundment, as discussed later, is part of the water treatment system). The underground support facilities in the Storke yard have been dismantled and reclamation is in progress. The oxide tailing pond area(Eagle Park Reservoir; aka: No. 4 Dam Reservoir) is being cleaned and reclaimed as a fresh water storage reservoir. No. 1 Dam has been resloped, capped, and seeded. The Robinson tailing impoundment has been capped with a rock cover from the E-Dump. Portions of the E-Dump have been recontoured and seeded. The water treatment system is being upgraded with the installation of an on-line lime slaking facility. Finally, numerous buildings and structures in the mine and mill area have been 3