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1.0 Henderson Mine <br />1.1 Disturbance <br />1.2 Interim Reclamation <br />Bryce Romig <br />Environmental Manager <br />Climax Molybdenum Company <br />Henderson Operations <br />P.O. Box 68 <br />1746 County Rd. 202 <br />Empire, CO 80438 <br />(303) 569 -3221, ext. 1204 <br />1.3.2 Prospecting Activities <br />Annual Report — 2011 <br />Henderson Mine and Mill Reclamation Activities <br />Permit No. M- 1977 -342 <br />New disturbance at the Mine in 2011 was limited to incremental caving of the glory hole and exploratory <br />drilling. No changes were made to any of the mine openings (shafts). A site map of the Henderson Mine <br />indicating affected land boundary and disturbance areas is included in Appendix A. <br />Water's Edge Reclamation was contracted during the summer of 2011 to seed just over three acres of <br />disturbed soil and potentially erosive areas. These areas were hydro - mulched with a mixture of soil <br />tackifier, biosolids, hydromulch and a Climax seed mixture. <br />Routine maintenance of erosion and sediment control structures was carried out in 2011. <br />1.3 Prospecting <br />1.3.1 Prospecting Contact <br />The contact person for the Notice of Intent (NOI) and prospecting activities is: <br />A surface drill program was initiated in July 2011 under Notice of Intent (NOI) P- 2011 -014 on the Urad <br />Valley side of Red Mountain and Harrison Mountain. Previously existing roads on Red Mountain and <br />Harrison Mountain were reopened in July 2011. New road was also constructed on Red Mountain (see <br />Hednerson Mine - URAD Figure for locations). These roads remain open as future drilling is planned in <br />2012. Five drill pads were constructed along these roads. Drill Pads 1 (on Red Mtn) and 2 (on Harrison <br />Mtn) were historical drill sites that were rehabbed. Drill Pads 3, 4, and 5 were new construction. These <br />remain open for future drilling. Three connected sumps (or mud pits) were dug at Drill Pad 2 to collect <br />drill cuttings. This material was subsequently removed to the Urad Drying Pond. The other sites did not <br />have sumps constructed as no drill cuttings were generated. <br />Four new surface core holes were drilled by an outside drilling contractor. The collar locations in <br />Latitude and Longitude are as follows: <br />Page 1 <br />