North Lampbright StockpileCloseout Plan

Mining Act Hearing

October 27, 2016

Lynn Lande

Introductions and Purpose

North Lampbright Stockpile Location Map

Brief Mine Operational History

Proposed Design Limit Changes

Description of the North Lampbright Stockpile

Closeout Plan – Describe the Reclamation Plan

Financial Assurance Process

Questions

North Lampbright Stockpile Closeout Plan Overview

Chino Mine – North Lampbright Stockpile Location

1909: Chino Mine began open pit operation

1911 and 1939: Copper extraction Hurley

<1976: The main stockpiles West, South and Lampbright in operation

1983: Concentrator relocated at the Santa Rita Mine

1987/1988: SX/EW constructed at the Santa Rita Mine

2007–2015: Hurley Smelter site reclaimed and older tailing

2016: MMD application for the North Lampbright Stockpile Extension – detailed application package

Brief Chino History

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Chino received its Mining Act Permit for the existing mining operations, including the Lampbright Stockpile, in 1997

Chino’s Closure-Closeout Plan was approved by MMD in 2003

In addition to the Mining Act Permit, Chino’s LampbrightStockpile is covered by a Discharge Permit, DP-376, administered by the Environment Department

- The North Lampbright Stockpile requires a separate modification of DP-376

- That permit modification is being processed by the Environment Department in a separate proceeding and is not the subject of this hearing.

Brief Permit Chino History

Chino Mines constructs three types of stockpiles:

Ore – also called a leach stockpile Reclamation cover

material Overburden waste

rock– North Lampbright

Stockpile (NLS)

Operation

Overburden Waste Rock Stockpile Proposed Design Limit Changes

Footprint ~187 acres - toe to crest

~87 acres overlap existingstockpile

50 ft. high benches with ~100 ft. step outs

Wide benches closer tofinal reclamation slope

300 ft. thick -- decreases to the north

~100 acres is located in the permit boundary but beyond the current “design limit”

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That portion of the stockpiles is treated as a “new unit” under the Mining Act

To comply with the “new unit” requirements, Chino:- Conducted a wildlife survey to verify the absence of protected

wildlife and plants

- Confirmed the absence of riparian areas, wetlands or springs

- Will install access controls, signs and markings to safeguard the public from unauthorized access

- Will comply with applicable requirements of the Cultural Properties Act

New Unit Requirements

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Chino will minimize negative impacts on the hydrologic balance by designing the stockpile to avoid releases of stormwater and incidental seepage

- Stormwater that contacts mine rock and incidental seepage will be contained in an impoundment

- The collected water will be used in the mine, replacing a portion of fresh water use

- Runoff from undisturbed areas will be diverted around the stockpile and released to a tributary of Lampbright Draw

New Unit Requirements

Groundwater Flow Map

NMED Ground Water Quality Bureau is evaluating proposed containment systems and monitoring well network under an application to modify Discharge Permit 376.

Aquifer evaluation using extensive field data:

- existing conditions

- monitoring well data

- geologic mapping

The closeout Plan describes the Reclamation Plan

Key Objective:- Create a self-sustaining ecosystem - Wildlife post mining land use

Reclamation Goals:- Water Management: release storm water, capture

mine water- Slope Stability: grading plan, cover material,

vegetation- Vegetation: wildlife habitat – regional seed mix

Closeout Plan Requirements

Closeout design:

- Final -3.5:1 slope angle (operation as well)

- 3 ft. thick reclamation cover material

- Storm water management channels

- 200 ft. outslope length

- > 1% top surface slope

North Lampbright StockpileCloseout Design

Post Reclamation Monitoring and Reporting - Vegetation and

Erosion - Surface and

Groundwater - Wildlife

Closeout Plan

MMD requires that each mining operation have financial assurance (FA) to ensure that reclamation is performed in accordance with the approved reclamation plan

Financial assurance costs are calculated for highest cost mine configuration over a 5 year period

FA must be in place prior to land disturbance payable to the State of New Mexico

The cost estimate must be developed assuming that a third party contractor completes the reclamation

NLS Financial Assurance

Forms of FA – cash, trusts, surety bonds, letter of credit, 3rd party guarantees, collateral bonds, insurance or a combination

Chino will propose a form of FA based on the criteria in the rule (19.10.12)

The FA amount and instrument is reviewed and approved by MMD

NLS Financial Assurance

Reclamation Tailings Ponds Seed Mix of Forbes, Grasses, and

Shrubs

Reclamation Top Surface Seeded 2012

Smelter Site Reclamation Seeded 2008

Wildlife Deer, Antelope, Fox, Birds, Reptiles,

Rabbits….

Thank You!