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REASON FOR INSPECTION: <br />Priority <br />BOND CALCULATION TYPE: <br />None <br />BOND AMOUNT: <br />$10,354,051.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP VII 1 NTACTS: <br />None 1 <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Clear <br />hp -r, R 7 . ' �TURE: <br />-� <br />SIGNATURE DATE: <br />January 14, 2013 <br />MINE NAME: <br />Henderson Mine <br />MINE/PROSPECTING ID#: <br />M -1977 -342 <br />MINERAL: <br />Molybdenum <br />COUNTY: <br />Clear Creek <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Peter S. Hays <br />INSP. DATE: <br />January 4, 2013 <br />INSP. TIME: <br />09:30 <br />OPERATOR: <br />Climax Molybdenum Company <br />OPERATOR REPRESENTATIVE: <br />Bryce Romig <br />TYPE OF OPERATION: <br />112 - Hard Rock Regular Operation <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS <br />(HB) HYDROLOGIC BALANCE <br />(SM) SIGNS AND MARKERS <br />(ES) OVERBURDEN/DEV. WASTE <br />Y (FN) FINANCIAL WARRANTY <br />NA (BG) BACKFILL & GRADING- <br />(PW) PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES- -- - - -- NA <br />(MP) GENL MINE PLAN COMPLIANCE- NA (FW) FISH & WILDLIFE <br />(AT) ACID OR TOXIC MATERIALS NA (OD) OFF -SITE DAMAGE <br />NA (RD) ROADS NA <br />NA (EX) EXPLOSIVES NA <br />(TS) TOPSOIL NA <br />NA (RV) REVEGETATION - - -- NA <br />NA (SP) STORM WATER MGT PLAN - - -- NA (SB) COMPLETE INSP - - -- N <br />NA (SC) EROSION /SEDIMENTATION - -- NA (RS) RECL PLAN /COMP -- NA <br />N (ST) STIPULATIONS - - - - -- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 4 <br />