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OBSERVATIONS <br />PERMIT #: M -1977 -342 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: May 17, 2012 <br />The Henderson Mine, File No. M- 1977 -342, was inspected by Peter Hays with the Division of Reclamation, <br />Mining and Safety (Division) in response to the submittal of Construction Certifications and As -Built Drawings <br />for the 3 -Dam Seepage Collection System. Mr. Miguel Hamarat, Mr. Tim Haynes with Climax Molybdenum <br />(Climax) and Mr. Steven Steffens with Steffens and Associates were present during the inspection. <br />Climax submitted the construction certification and as -built drawings for the 3 -Dam Seepage Collection <br />System on April 26, 2012. The initial construction of the 3 -Dam seepage collection system was approved by <br />the Division on September 10, 2010. The seepage collection system is part of Technical Revision No. 9 (TR -09). <br />Steffens and Associates, Inc. provided a letter, dated April 6, 2012, documenting the 3 -Dam Seepage Project <br />was substantially constructed in conformance with the As Constructed Drawings that were included with the <br />letter. <br />During the inspection, Mr. Steffens explained the design and operation of the collection system. The <br />construction and design appeared consistent with the submitted As -Built drawings and certification letter. <br />The system was not operational at the time of the inspection due to a problem with the pump flange fitting at <br />the lift station. The area was hydro seeded and erosion waddles were installed to prevent erosion. The two <br />"Moist Surface Soils" areas indicated on Drawing No. 3DS -2 showed signs of iron staining. It was determined <br />during the inspection that additional blanket drains were needed in these two areas. The Division will require <br />Climax to submit revised As -Build drawings and a certification letter once the additional blanket drains are <br />installed. <br />The stormwater bypass drain which conveys water from County Road 3 though the project area was exposed <br />in several sections, but will be covered for protection in the future. Monitoring wells are planned to be <br />installed northwest of the project area. The installation of an additional informational monitoring well near <br />the seepage area was discussed during the inspection. <br />Photographs from the inspection are attached. <br />Inspection Contact Address <br />Miguel Hamarat <br />Climax Molybdenum Company <br />19302 County Rd. #3 <br />Parshall, CO 80468 <br />Cc: Tom Kaldenbach, DRMS <br />Page 2 of 4 <br />