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GROUNDWATER AND SOIL CONDITIONS AT THE SOUTH T -BAR <br />RANCH <br />Prepared by Adrian Brown, P.E, Geohydrologist, Denver, Colorado <br />History <br />The South T -Bar Ranch occupies a unique and historic location in Colorado. Part of the Ranch <br />contains a number of uranium orebodies, of which the largest is the Hansen Uranium deposit. <br />The locations of the principal deposits in the area are shown on the attached map. As a result of <br />the uranium mineralization present in the area, there has been historic uranium prospecting and <br />some modest uranium production from small mines in the area. In the late 1970s a major <br />development of the Hansen deposit was proposed, and the land parcel which included what <br />today comprises the South T -Bar Ranch was assembled to allow this development to proceed. <br />However the uranium deposits in the area, while large, are of low grade, and are generally buried <br />at great depth below ground surface (typically 600 feet or more). For these reasons, it is not <br />economic to develop these deposits for the extraction of uranium under current or reasonably <br />foreseeable market conditions. As a result, the mine proposal was abandoned, and the parcels of <br />land that make up the South T -Bar Ranch have become available for ranching and residential <br />use. <br />The presence of the uranium deposits beneath some of the areas on the South T -Bar Ranch <br />raises some issues for future use of this land, relating to impact on surface use and on water. <br />These issues have been evaluated by technical experts retained by Land Properties Inc., and the <br />results are presented below. <br />Orebody Formation <br />The uranium in the orebodies beneath the Ranch comes from volcanic eruptions that occurred <br />more than 100 million years ago. The volcanic materials produced in those eruptions covered the <br />entire area around the Ranch, and filled the existing valleys with volcanic rock to considerable <br />depths. These volcanic materials were gradually decomposed and eroded by natural weathering, <br />and small amounts of uranium that were contained within the volcanic material were leached into <br />the ancient groundwater system. This groundwater moved downward from the ground surface, <br />and in the Ranch area flowed through the organic -rich valley fill materials that had been buried <br />by the volcanic eruptions. Conditions in the valley fill material caused the uranium to precipitate <br />out of the groundwater, concentrating the uranium and creating the orebody. Since then <br />sedimentary materials have been deposited in the area, and have consolidated; thus the orebody <br />is now covered with about 600 feet of rock. Relatively recently, a mantle of soil has formed on <br />the surface by sedimentary deposition and weathering of the upper rock materials. <br />Surface Use <br />Because of the way that the orebody developed, and its great depth, the current soil and near- <br />surface rocks in the South T -Bar Ranch area have not been affected by uranium mineralization, <br />and were not the source of the uranium in the orebody. In general the soil is free of uranium, <br />