Inactive McCracken Mine Closure Project Mohave Co., Arizona

1. Inactive McCracken Mine Closure ProjectMohave Co., Arizona

2. Site Location • Mohave County • Approximately 60 miles southeast of Kingman, Arizona • Approximately 140 miles northwest of Phoenix, Arizona

3. Site Setting • Basin and Range topography • Steep rocky terrain, elevation ranges from 2,800 ft to McCracken Peak at 3,524 ft • Sonoran desert: Mostly hot and dry; winter storms, and summer monsoons • Typical flora and fauna: Cactus, fox, deer, raptors, scorpions, rattlesnakes, desert tortoises and bats • Area popular for hikers, off-highway vehicles, rock hounds

4. History • Silver-lead-zinc discovery 1874 by Jackson McCracken and “Chloride” Jack Owens • Five mining claims patented from 1887 through 1909; about 100 acres total • Surface and underground features

5. History • Several periods of mining: 1874-1884 1902-1903 1919-1924 1931-1960 1980-1981 1984-1985 • Variety of owners and lease operators through the years • Focused on exploration in 1960s Signal Mine Workings 1942

6. Operation Background • 1967 Magnum Mining Company purchased mining claims • 1983 Teck Resources acquired title through a merger with Magnum Mining Company, ISO Nevada Limited, and Thermochem Industries of America, Inc. • 1983 to 1985 Arizona Silver Corporation leased property and operated mine; produced some silver • Teck never operated the mine

7. 20 Years Later • Teck Resources holds title to the patented claims • Off-road enthusiast made purchase offer in 2005 • Teck conducted a risk evaluation and determined that closure activities were necessary

8. 20 Years Later • Survey of site features conducted in January 2006 identified about 50 mine openings • Contracted ERM to plan and implement closure activities in April 2007

9. Deep unmarked shafts Adits with rotting timbers Unstable workings Potential accumulation of deadly gases Unused explosives Rugged terrain and remote location Potential Site Hazards

10. Planning Considerations • Teck’s primary goal for the closure was to eliminate the safety risk posed by underground features at the site • Additional considerations were: • Affect on local communities (recreation) • Cultural resource preservation • Bat habitat preservation

11. Closure Strategy Implement Interim Safety Measures Evaluate Site Risk Evaluate Feature-Specific Conditions Design Feature-Specific Closures Construct Closures Restrict Site Access to the Extent Practicable Monitoring

12. Project Philosophy • Partner with stakeholders during initial the planning stage of the project • Regulatory stakeholders • Community stakeholders • Include a commitment to Health and Safety in all aspects of project planning and execution

13. Partnering With Regulatory Stakeholders • Arizona State Mine Inspector (ASMI) • Ensure safety of public • Arizona Game and Fish Department (AGFD) • Protect bats and bat habitat • Bureau of Land Management (BLM) • Permits for upgrade of road to site • State Historic Preservation Office (SHPO) • Preserve cultural or historic artifacts

14. Project Implementation • Initial Site Survey: • Inventory of Features • Identify Stakeholders • Interim Safety Measures: • Fencing • Signage • Evaluate Site Conditions: • Environmental • Cultural Resources • Habitat (Bats) • Closure Design: • Polyurethane Foam • Backfill • Fencing • Bat Compatible • Construction: • Health & Safety • Quality Control

15. Initial Site Survey • Collect basic information about each site feature: • Location & access • Feature dimensions • Photo documentation • Safety issues • Environmental conditions • Sketch of feature location

16. Interim safety measures were implemented in 2007 while working with agencies and developing closure plan safety plan, fencing, signage, newsletter Interim Safety Measures

17. Interim Safety Measures

18. Environmental Survey • Evaluation of site risk to human health and the environment • Elevated lead in waste material (H&S consideration for construction activities) • Low acid rock drainage potential • No potential to impact surface and groundwater water bodies

19. Cultural Resources • Archaeologist conducted above ground inventory: • 11 structures and 3 artifact concentration areas • Site condition disturbed and degraded; nothing of significance remaining • Shared findings with SHPO • Agreed to avoid disturbance to any structure or artifact scatter during closure activities

20. Bats in Arizona • 28 species in Arizona; deserts to forests • Vital role keeping insect populations in balance • Laws prohibit killing, harming or disturbing bats • Bat habitat has been lost due to disturbance by caving, mine exploration, mine closure, vandalism, extermination • Bats have adapted by using inactive mines for roosting

21. Bat Species Identified at Site • Internal bat survey identified four species; one an Arizona and federal “species of concern” • California leaf-nosed • Townsend’s big-eared • Cave myotis • Long-eared myotis • Survey indicated that habitat preservation should be factored into design of mine closures

22. Bat Habitat Preservation • 47 mine openings secured using backfill, polyurethane foam and gate closures • 9 were bat-compatible closures; $140,000 of $1,000,000 project total

23. Bat Habitat Preservation

24. Bat Habitat Preservation • Timing of construction activities outside maternity and hibernation seasons (February to April) • Entered into Cooperative Stewardship Agreement with Arizona Game and Fish • Teck to maintain bat gates for 10 years • AGFD to monitor effectiveness of bat gates

25. Habitat Monitoring • Over 1,700 bats observed at 3 locations during first survey in July

26. Habitat Monitoring • Use of bat-compatible closures by non bat species also observed

27. Site Worker Safety

28. Site Worker Safety • Closure plan completed in January 2008 • Included site-specific health and safety plan • Hazard identification and control • Spill containment, SOPs, safe work practices, and safety briefings • Site control measures • Site communication • Confined space plans • Emergency response plan, etc. • Construction activity took place between February and April 2008

29. Construction Summary • 11 weeks of construction in challenging terrain • Over 3,200 man-hours worked with no safety or environmental incidents • 47 mine openings secured; 9 with bat gates

30. Project Summary • Significantly reduced risk to public safety • Voluntary action that set benchmark for others • Preserved significant bat habitat • Partnering early on with stakeholders allowed the alignment of goals and smooth execution of the closure • Established mutually beneficial and cooperative partnerships

31. Abandoned Mines Program Voluntary Action Award