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J W. W. Wheeler and Assoc., Inc. <br />1 Water Resources Engineers <br />February 3, 2012 <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 2011 pond survey. The <br />survey of the beach and pool area was performed in October. Figure 1 is the pond <br />contour map that was generated by Wheeler from the survey point data. The survey <br />shows that the average dam crest elevation of No. 1 Dam at the end of the spigot <br />deposition season is about 8860.3 feet, which is a 5.3 -foot increase from last year. The <br />minimum elevation surveyed along the dam crest was 8857.84 feet, which occurred on 3 <br />Dam. This information, as well as other characteristics of the pond, is summarized in the <br />table in the upper right -hand corner of the pond map drawing. Table 1 is the elevation - <br />capacity data for the impoundment that was generated from the fall 2011 contour map. <br />Note that this data is representative of the pond at the time of the pool survey and <br />changes continuously as additional tailing is deposited. <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 />8,716 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 8853.8 feet. The <br />current flood storage requirement for the system is 3,582 acre -feet. This requirement is <br />based on a hydrologic analysis performed by Wheeler and described in report titled <br />3700 South Inca Street Englewood, Colorado 80110 Phone (303) 761 -4130 Fax (303) 761 -2802 <br />