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SECTION 1 .0 INTRODUCTION <br /> This Technical Revision JR) to the approved Sunday Mines Group Environmental <br /> Protection Plan (EPP) prepared by CDM Inc. (CDM) and Denison Mines (USA) Corp. <br /> (Denison) in 2012 provides additional detail regarding the on-site storage of ore and <br /> low-grade ore at these mine sites. <br /> This TR specifically amends Sections 2.1 (Description of Specified Mine Facilities), <br /> 2.1.2 (Temporary Ore Stockpiles), 2.2.2 (Acid and Toxic Producing Materials), 6.1 <br /> (Proposed Ore Storage Pad with Geomembrane Liner), and 6.1.1 (Proposed Ore <br /> Storage Pad Design) to define ore as mined rock that exceeds 500 parts per million <br /> (ppm) uranium, which is equivalent to 500 milligrams per kilogram (mg/kg) uranium. <br /> Waste rock (referred to as development rock in the EPP and this TR) is defined as <br /> mined rock that contains less than 500 ppm and 500 mg/kg. <br /> This TR to the EPP also adds Sections 6.2, (Proposed Corrective Action for Low-Grade <br /> Stockpiles Exceeding 500 PPM Uranium), 6.2.1 (Proposed Cover Design for the <br /> Sunday Mine Low-Grade Stockpile), and 6.2.2 (Evaluation of the Proposed Sunday <br /> Low-Grade Stockpile Cover Design). As stated above, mg/kg and ppm are equivalent <br /> and are used interchangeably throughout this TR. <br /> Section 1.1 Background Information <br /> Low-grade stockpiles are relatively common in the mining industry, as the cut-off grade <br /> for ore typically changes over time in response to the commodity price and the cost of <br /> mining and milling. Material that is just below the cut-off grade sometimes has to be <br /> mined to access the higher-grade ore; and, it is prudent to selectively stockpile this <br /> lower grade material rather than place it in a waste rock facility because it may become <br /> a valuable asset if economic factors improve. This is especially true for uranium mines <br /> as the industry has seen extreme fluctuations in uranium prices and blending of low- <br /> grade ore with higher-grade ore is a common practice in providing a uniform mill feed. <br /> The Sunday Mines Group consists of five declines that intersect the top rim of the Salt <br /> Wash Unit of the Morrison Formation. At the surface, each decline has a development <br /> rock pile and some surface infrastructure (typically mine buildings and power lines). <br /> During active operations, most of these mines also had both ore stockpiles and low- <br /> grade ore stockpiles on site. With the exception of the Sunday Low-Grade Stockpile, <br /> these ores were removed at the time of temporary closure and transported to the White <br /> Mesa Mill near Blanding, Utah for processing. <br /> 3 <br />