2013-10-17_PERMIT FILE - M2013041 (2)

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1k STATE OF COLORADO DIVISION OF RECLAMATION, MINING & SAFETY Department of Natural Re SOUrces COLORADO I i13 Sherman St., Room 21S D I V I S I O N O F Denver, Colorado 80203 RECLAMATION Phone- (i(13) 866 -3567 MINING FAX- (303) 832 -8106 — &- SAFETY John W. Hickenlooper Governor Uranium Mining in Colorado Mike King Executive Director 2013 (Updated October 16, 2013) Loretta E. Rheda Director The Uravan mineral belt is the oldest uranium mining area in the U.S., and historically the most productive uranium and vanadium region in Colorado. The Uravan mineral belt has an estimated 1,200 historic mines that produced over 63 million pounds of uranium and 330 million pounds of vanadium from 1948 to 1978. In Eastern Colorado, "roll- front" type uranium deposits similar to those in the Uravan belt are found primarily in the northeast section of the state. Colorado ranks third among the states for uranium reserves, behind Wyoming and New Mexico. Activity Overview: In 2005, the Colorado Geological Survey (CGS) estimated total Colorado uranium production to be 255,544 pounds. This production came primarily from the four Cotter Corporation mines in Western Colorado. The 2005 uranium production from these mines had a gross value of $7.3 million based on the average 2005 uranium (U30$) price of $28.52 per pound. The uranium - vanadium ore was trucked from the Western Slope mines to Cotter's mill in Canon City. Cotter's Canon City uranium ore mill is one of only four uranium mills in the U.S. In December 2011, Cotter indicated that it would not seek renewal of its expiring radioactive materials license from the Colorado Department of Public Health and Environment (CDPHE) Radiation Control Division, and would begin the process of mill closure. Cotter Corporation has gained approval of an Environmental Protection Plan (EPP) from the Mined Land Reclamation Board for 8 of its 12 mines in Colorado. Currently the Division is finishing review of the 4 remaining EPP submissions from Cotter. Approval of plans is currently scheduled for January 2014. In 2007 Denison Mines (USA) Corp., formerly International Uranium (USA) Corporation began producing ore from three of its permitted mines in San Miguel County. Denison shipped ore from these sites to its White Mesa Mill near Blanding, Utah. Ore production activities were halted in the fall of 2009 due to decreased uranium prices. In March 2012, Denison received approvals from DRMS for the Environmental Protection Plans (EPPs) that were amended into each of its six active Colorado permits. Energy Fuels Resources (USA) acquired Denison Mines in 2012. Energy Fuels gained approvals in September of 2008 for the Whirlwind Mine in Mesa County. The mine is currently in Temporary Cessation but continues to do maintenance while monitoring groundwater as required. In April of 2013, the CDPHE's Radiation Control Division re- approved Energy Fuels Resources application to build a uranium mill in the Paradox Valley of Western Colorado after lengthy litigation. The U.S. Environmental Protection Agency (EPA) approved an application for the design and construction of the mill tailings and evaporation ponds on October 27, 2011. The Pinon Ridge Mill will be the first conventional uranium mill constructed in the United States in almost 25 years if all permits are issued and economics improve. RECEIVED OCT 17 2013 Division of Reclamation, Mining & Safety