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Annual Report - 2010 <br />Henderson Mine and Mill Reclamation Activities <br />Permit No. M-1977-342 <br />accomplished by removing the piping connection at the north abutment of #1 Dam and also backfilling <br />and compacting the canal channel. <br />2.3. 5 - Lower Flood Bypass <br />At the recommendation of URS, Henderson placed additional plugging in the Lower Flood Bypass line. <br />The plug consisted of additional structural concrete, backed with approximately 400 feet of cellular grout. <br />Based on investigations completed by URS, this plug should adequately provide closure of this system. <br />2.3.6 - 3 Dam Seepwater Line Leak-Down Test <br />The annual 3-Dam seepwater line leak-down test was completed on May 4, 2010. Records of the test are <br />contained in Attachment D. <br />2.3.7 - 3 Dam Seepwater Collection <br />Installation of a seep water collection system was begun in 2010 below the number 3 Tailings Dam. <br />Work on the project was curtailed due to winter weather but the project is scheduled to be completed <br />during the summer of 2011. The completed system will collect water seeping through the tailings dam <br />and direct it in to the mill process water system. <br />2.3.8 - East Branch Pipeline Replacement <br />The Henderson Mill replaced an approximate 1600 lineal feet of the Mill Process Water Supply Pipeline <br />which transfers process water from East Branch Pump House to the Mill Process Water Supply Tanks. <br />The original 36 inch diameter ASTM-A 134 steel pipeline was replaced with a 36 inch diameter SDR 11 <br />HDPE pipeline. Henderson engineering and sub-consultants completed the design and installation of the <br />pipeline. Installation of the pipeline is complete and the pipeline is currently in service. <br />2.3.9 - Cyclone Project <br />Henderson installed a cyclone bank atop Drop Tower 8 in the tailing delivery line during the summer of <br />2010. This installation's function is to enhance the deposition occurring on the crests of the tailing dams <br />to encourage crest building. <br />3.0 Anticipated 2010 Activities <br />Reclamation in 2011 will include additional topsoil salvage and stabilization. <br />4.0 Henderson Permit Files <br />Henderson made a concerted effort in 2010 to review its DRMS permit files to make sure that all <br />associated commitments have been met and that the related files, correspondence and authorizations are <br />complete. As is practicable, our goal is to obtain written confirmation that obligations associated with <br />each of our technical revision and permit amendment files have been satisfied. We believe this will prove <br />useful to both Henderson and DRMS. The following table provides a summary of related correspondence <br />submitted to DRMS in 2010. To date, Henderson has not received a response to these submittals. <br />Page 3