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.A11 <br />Mr. Miguel Hamarat <br />Climax Molybdenum Company — Henderson Operations <br />1746 County Road 202 <br />Empire, Colorado 80438 <br />Subject: Henderson Mill 1 -Dam Wellfield Project - Technical Revision 10 (TR -10) <br />Assessment, Henderson Mill, Permit No. M -77342 <br />Dear Mr. Hamarat: <br />1 <br />CLEAR <br />CREEK --"Ow <br />ASSOCIATES <br />ianuary 3, 2013 Transmitted by E -mail <br />AJAX Mountain Enterprises LLC (dba AJAX Ltd) and Clear Creek Associates PLC (Clear Creek) <br />have reviewed the TR -10 submittal (FR-10), dated May 15, 2001, and assessed the requirements of <br />TR -10 relative to monitor well installation and monitoring activities completed since 2001. <br />Per TR -10 Task 1 - Drill Test Holes and Site Extraction Wells and Task 2 - Design Extraction Well <br />System, several test holes and extraction wells have been installed according to the proposed design. <br />The TR -10 Scope of Work (SOW) proposed to drill up to fourteen (14) test holes along the <br />proposed extraction well system alignment. The information obtained from test hole /piezometer <br />installation would be used to select the most advantageous sites for extraction wells and to develop <br />the extraction well system design. It was estimated that seven (7) sites would be selected for <br />extraction well installation. <br />A total of fifteen (15) test holes /piezometers (THP -1 to THP -15) were installed along the 1 -Dam <br />wellfield alignment. They were installed at approximately 50 ft spacing and were completed with 2- <br />inch PVC as specified in the SOW. Three additional piezometers, HMEX -1R, 2R, and 3R, were <br />installed to the east of these test holes and are also paired with extraction wells. A total of nine <br />extraction wells (HMEX -01 to HMEX09) were installed. "Two electric submersible pumps were <br />installed in HMEX -2 and HMEX -3, and these are the two extraction wells currently operating. The <br />remaining seven extraction wells arc outfitted with pneumatic pumps and have operated historically, <br />as needed. The locations of the test holes /piezometers and extraction wells are shown on Figure 1. <br />As noted in the URS letter, dated November 30, 2010, the 'IR -10 SOW specified that up to six more <br />piezometers be installed at strategic locations surrounding the extraction well system. These <br />piezometers were to be used to monitor water levels for evaluation of groundwater capture. The <br />locations were not specified in the TR -10 submittal. URS stated in their 2010 letter that the test <br />hole /piezometers installed adjacent to the extraction wells would not meet the wellfield <br />performance monitoring objective envisioned in TR -10. AJAX and Clear Creek agree that <br />downgradicnt wells in addition to the test hole /piezometers along the 1 -Dam wellfield alignment are <br />necessary to monitor system performance. <br />