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Annual Report — 2011 <br />Henderson Mine and Mill Reclamation Activities <br />Permit No. M- 1977 -342 <br />The target species treated property-wide include: Canada, musk & plumless thistle, Oxeye daisy, Yellow <br />Toadflax, Houndstongue, and Mayweed Chamomile. These species were treated with Tordon, 2,4 -D, <br />Milestone, Weedestroy and Induce. <br />Additionally, all fuel storage locations (gasoline, diesel and propane) were treated with a Throttle XP and <br />Roundup (soil sterilizers to prevent any vegetative growth). <br />2.3.2 — Groundwater Data <br />Groundwater data for well MLGW - 7 for Henderson Mill is contained in Attachment B. <br />2.3.3 — Flood Storage Capacity <br />Analysis of flood storage capacity in the Mill tailings impoundment was carried out by W.W. Wheeler, <br />per DRMS requirements stipulated for Technical Revision (TR) 14. These are included as Attachment D. <br />2.3.4 — Interceptor Canal Improvements <br />No significant repairs or modification were made to the Interceptor canal. All intercepted flows are <br />currently being routed through the higher (ultimate- elevation) interceptor canal. The majority of the pre- <br />existing lower canal has been formally closed, backfilled and is currently being inundated as the tailing <br />elevation increases. <br />2.3.5 — Lower Flood Bypass <br />Following the closure of the Lower Flood Bypass, no other developments have been made. The closure, <br />to date, has been effective. <br />2.3.6 — 3 Dam Seepwater Line Leak - Down Test <br />The annual 3 -Dam seepwater line leak -down test was attempted late in the year, but was not successfully <br />completed during 2011 due to a leaking valve set. Efforts are currently in place to have that valve <br />replaced and the line re- tested. <br />2.3.7 — 3 Dam Seepwater Collection <br />The number 3 Tailings Dam seep water collection system was completed in 2011 and is currently being <br />commissioned. The system collects water seeping through the tailings dam and directs it to the mill <br />process water system. <br />2.3.9 — Lime Slaker <br />Lime slaker construction was completed in 2011 and is currently in operation. The pH of process water <br />has increased, and is currently circum - neutral. <br />3.0 Anticipated 2012 Activities <br />Reclamation in 2012 will include additional topsoil salvage and stabilization at the Mill. At the Mine, <br />planning is currently underway to initiate reclamation of the area near 1.2 Pond. Activities for 2012 could <br />include regrading outslopes of overburden material along the West Fork of Clear Creek, removal of <br />sludge from 1.2 Pond and relocation of fuel tanks. <br />Page 3 <br />