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• III IIIIIIIIIIIIIIII ~.~,~ ~- ~ ~,~~ <br />~ ~~ ~~~~ <br />© CLIMAX MOLYBDENUM COMPANY Colorado Operations <br />a o~~~:~a~ m cyan. o~n,.. M.cais co Hentlerson Mine <br />FO Box 68 <br />Empire. Colorado 80438 <br />Ivlecro (3037 271-0107 <br />Out of :fate (3037 5693221 <br />March 8, 1999 RE~EIVE~ Fax (303] 569-283D <br />Via hand delivery MAR ~ ~ 1999 <br />p;vision of M~~t~s &~eob4Y <br />Mr. Bruce Humphries, Minerals Chief ~p~ / 9 <br />Division of Minerals & Geology ~~ ~''"`'"`''OO ~~ ~ <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: 1998 ANNUAL REPORT 112d-3 ANUAL REPORT - HENDERSON MINE <br />AND MILL (PERMIT NO. M-77-342) <br />Deaz Mr. Humphries: <br />lllcluded is the Colorado Division of Minerals and Geology (DMG) Annual 1 12d-3 <br />Report for Climax Molybdenum Company's Henderson Mine and Mill (Permit 1`70. M- <br />77-342), and our check for [he $1,00.0.00 annual tee. The attached sheets provide; detail <br />on our projected reclamation costs for the Mine and Mill sites, in addition to our <br />Henderson 2000 Project for which we received an amendment to our reclamation permit <br />in 1998. We increased our estimate of the reclamation costs to $9.679 million from <br />$6.387 million. This increase in reclamation costs is attributable to an increase in <br />disturbance at the Mill tailings basin and construction activities for the Henderson 2000 <br />Project. ' <br />Henderson Mine and Mi(1 currently maintain a bond sufficient to secure the payment of <br />these reclamation costs. For your reference we have included a copy of the relevant <br />paperwork for documentation. We will not need to increase our current bond [o cover the <br />additional costs since we already increased the amount in 1998 for the Henderson 2000 <br />project and never reduced the amount in 1997 to reflect decreased soil moving costs as <br />was described in our 1996 report to DMG, dated Mazclr 4, 1997. <br />The reclamation-type activities described below were efforts to make progress toward <br />ultimate reclamation of Henderson Mine and Mill industrial areas. None of these <br />activities are considered final reclamation, additional work will be necessary prior to any <br />bond release. <br />Mine Site <br />Waste scrap wood was removed from the salvage yard near #5 shafr and [he area was <br />excavated to smooth [he terry ain. There were no new disturbances at the Mine in 1998, <br />nor do we expect any new disturbances in 1999. <br />