1. Operations Description
Climax Molybdenum Company
Henderson Operations
Now I’d like to spend a few minutes talking about our molybdenum business..
May 3, 2000

2. Mine Site with Red and Harrison Mountains
Red Mountain - Mine
May 16, 2000

3. Geology Classic Climax-type porphyry molybdenum deposit
Host rock is granite/aplite porphyry
474,000 feet of core drilling
Limited accessory mineralization
May 16, 2000

4. May 16, 2000

5. Preliminary Lab Layout with Drill Hole
May 16, 2000

6. Drill Hole in Relation to Proposed UNO Site
May 16, 2000

7. Drill Hole into Harrison Mountain
The hole is 2,500 feet in length
The hole had an inclination of -26 degrees with the top at the 7,500 feet and the bottom at 6,300 feet.
The hole was drilled at HQ-3 (2.4 inches in dia.) for 1,397 feet and NQ-3 (1.8 inches in dia.) for 1,102 feet.
Hole deviation was less than 200 feet
Geological logging is complete
May 16, 2000

8. Drill Hole into Harrison Mountain (cont.)
The rock is a rhyolite or aplite porphry
The rock is very hard with a high percentage of quartz.
The rock is expected to have a high compressive strength (this will be tested)
The RQD is quite high, 70 – 100.
There is no evidence of mineralization
May 16, 2000

9. Drill Hole into Harrison Mountain (cont.)
There were only a few small fractured zones, not near the UNO area, and no fault zones
There is very little water, only about 1.5 gpm.
Due to the hardness and strength, there is some potential for rockbursting when mining. This potential is no greater than what has been experienced at Henderson in the past.
May 16, 2000

10. Example of Mineralized Core
May 16, 2000