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Mr. Dustin Czapla <br />Page 2 of 8 <br />Property Location: The Pitch Reclamation Project is located six miles east of <br />Sargents, Saguache County, Colorado 81248 (Figure 2) <br />Latitude: 38024'24 N, Longitude: 106017'50 W. <br />Sections 29, 30, 31, 32, Township 48 North, Range 6 East, <br />New Mexico Prime Meridian. <br />Equipment: Two existing piezometers and two proposed piezometers, <br />completed into the underground mine workings, will be used <br />to deliver, recirculate, and/or monitor phosphate and <br />conservative tracer(s) within the underground mine workings <br />(Figure 3). The two new piezometers will be completed to an <br />approximate depth of 300 feet. The estimated date of <br />piezometer development is July 6, 2015. In addition to use <br />during pilot testing (and possible full-scale testing), the <br />piezometers will be used for long-term water level <br />monitoring. Injection equipment will consist of tanks, totes, <br />flow meters, pumps and conveyance piping necessary to <br />transport the injection fluid to the piezometers. <br />Reclamation: A total of approximately 0.4 acres of previously reclaimed <br />ground will be disturbed during piezometer drilling and <br />completion. The disturbed areas will be reclaimed once the <br />piezometers are no longer being used as part of the long- <br />term monitoring program associated with the pilot test and <br />full-scale implementation. When warranted, the piezometers <br />will be plugged in accordance with Rule 16 of the Water Well <br />Construction Rules and the surface will be re-contoured and <br />re -vegetated. <br />Background <br />In 2013, the Water Quality Control Commission issued a Seasonal Type B Temporary <br />Modification on the Gunnison River Basin Segment 20 (Indian Creek). The modification <br />was intended to provide sufficient time to determine the "lowest practical level" (LPL) of <br />uranium that discharges to Indian Creek at the Pitch Reclamation Project Colorado <br />Discharge Permit System (CDPS) permit # CO -0022756 point of compliance (POC, <br />SW -33). In 2014, HMC implemented a plan to assess both natural and human -induced <br />sources of uranium to surface water and groundwater to support evaluation of mitigation <br />options that are practical and technically and economically feasible. A conceptual site <br />model (CSM) was developed for the Pitch Reclamation Project to document the sources <br />of uranium as well as the geochemical processes that control uranium concentrations in <br />surface water and groundwater within the Pitch property footprint. With the CSM <br />established, an alternatives evaluation was performed to assess viable clean water <br />diversion, uranium source control, in-situ and passive/semi-passive options to achieve <br />uranium mass load reduction, and to obtain the LPL for uranium. "Proof of concept" <br />460 West 50 North, Suits 500, Salt Lake City, Utah 84101 TEL(801)990-3746 <br />