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PERMIT#:M-1977-300 <br /> INSPECTOR'S INITIALS:AME <br /> INSPECTION DATE:November 7,2019 <br /> OBSERVATIONS <br /> This was a normal monitoring inspection of the Schwartzwalder Mine (Permit No. M-1977-300) conducted by <br /> Amy Eschberger of the Division of Reclamation, Mining and Safety(Division). The operator was represented <br /> by Liz Busby and Billy Ray during the inspection. The site is located approximately 6 miles northwest from <br /> Golden, CO in Jefferson County. Access to the site is from the south off Glencoe Valley Road. This site is on a <br /> quarterly inspection frequency. This inspection serves as the 4'" quarter 2019 inspection. Photos 1-11 taken <br /> during the inspection are included with this report. <br /> This is a 112d-2 underground uranium mine with a permit area of 72.24 acres. The site is situated at the bottom <br /> of a canyon, adjacent to Ralston Creek. The site was mined by Cotter Corporation, then Colorado Legacy Land, <br /> LLC took over the permit in 2018 to complete reclamation of the site. Since that time, the operator has relocated <br /> water treatment plant operations to the mesa, demolished structures in the valley, placed demolition debris <br /> underground as approved in the permit, and begun excavation activities in the valley. The operation continues to <br /> conduct surface water and groundwater monitoring on a quarterly basis, and treatment of groundwater via in- <br /> situ methods and a water treatment plant. <br /> The water treatment plant was online during the inspection. The mine pool was at 197 feet below the Steve <br /> Level, which is 47 feet below the required 150 foot depth. The current mine pool level is very close to the target <br /> depth for in-situ treatment, which the operator anticipates will occur in mid-late December. The new mine pool <br /> dewatering 60 HP submersible pump installed this spring, was online during the inspection. Mine water is now <br /> being pumped from the Jeffrey Air Shaft and conveyed downhill via a double-walled HDPE pipeline to a <br /> holding tank located on the east side of the water treatment plant, rather than pumped from the Steve Adit. The <br /> water infrastructure installed in the Steve Adit is still in place at this time. <br /> No excavation or hauling activities were occurring on site during the inspection. However, the operator <br /> anticipates excavation activities will continue into the winter season as long as weather conditions are favorable. <br /> Excavation activities are currently located near the Black Forest portal,just south of the South Waste Rock Pile <br /> (SWRP). The operator has graded most of the slopes in the excavation area to a stable configuration in <br /> preparation for the winter season. The operator is temporarily stockpiling excavated material on the floor of the <br /> excavated pit until it can be hauled up to the Minnesota Mine for disposal. Thus far, the operator has placed <br /> approximately 15,790 cubic yards of excavated material into the CV Glory Hole (in the Minnesota Mine) in <br /> accordance with the approved reclamation plan. The operator estimates the CV Glory Hole to have a remaining <br /> capacity of approximately 12,000 cubic yards. As the excavation project continues, the operator has found the <br /> contaminated alluvial fill to be more extensive than originally estimated. Therefore, it is likely that more <br /> material will need to be excavated (potentially up to 30,000 cubic yards) than can be placed inside the CV Glory <br /> Hole. <br /> While the operator is authorized to place additional material onto the existing waste rock piles, it is not <br /> preferred at this point given the reclaimed state of the piles and the potential seep issue with the North Waste <br /> Rock Pile(NWRP). Therefore, the operator is exploring the possibility of placing excavated material into the <br /> Black Forest Mine. The Division informed the operator during the inspection that this proposed change to the <br /> approved reclamation plan would need to be submitted through an Amendment application. Given the lower <br /> elevation of the Black Forest Mine relative to the current approved underground disposal area (the Minnesota <br /> Mine), a proposal to dispose of contaminated material inside this mine must include adequate demonstration the <br /> mine is not hydrologically connected to the Ralston Creek alluvial system. The operator indicated the <br /> Amendment application may need to include a slight increase in affected lands to incorporate access to the <br /> Black Forest Mine. <br /> Page 2 of 9 <br />