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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />July 25, 2012 <br />Mr. Miguel Hamarat <br />Climax Molybdenum Company <br />Henderson Mill <br />P.O. Box 68 <br />Empire, CO 80438 <br />Groundwater Management Plan <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />John Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />Re: Climax Molybdenum Company, Henderson Mine, Permit No. M- 1977 -342 <br />Technical Revision Approval, Revision No. TR -16 <br />Dear Mr. Hamarat: <br />On July 25, 2012 the Division of Reclamation, Mining and Safety approved the Technical Revision <br />application submitted to the Division on April 27, 2012, addressing the following: <br />The terms of the Technical Revision No. 16 approved by the Division are hereby incorporated into <br />Permit No. M- 1977 -342. All other conditions and requirements of Permit No. M- 1977 -342 remain <br />in full force and effect. <br />Henderson may commence the process of conducting further groundwater studies at the Mill to <br />determine the following: <br />• The appropriateness of MLGW -7's current location and the rationale for or against a <br />nested well at this location. <br />• The appropriateness and recommended location of a POC well below 3 -dam and the <br />rationale for or against a nested well at this location. <br />• The appropriateness and recommended location of a POC well in the Potato Gulch <br />drainage and the rationale for or against a nested well at this location. <br />The Division will require Henderson to submit the results of the further groundwater studies for <br />Division review following their completion. Additionally, the Division will require Henderson to <br />submit the results of the baseline parameters and Numeric Protection Levels (NPLs) assessments <br />for the POC Wells for Division review and approval as stated in the technical revision. <br />Office of Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />