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SUNDAY MINE COMPLEX-HYDROGEOLOGIC REPORT <br /> EXECUTIVE SUMMARY <br /> Western Water& Land, Inc. (VVWL) has prepared this report on behalf of Pinon Ridge Mining <br /> LLC (PRM) to document the hydrologic characterization component of the uranium/vanadium <br /> mining operation at the Sunday Mine Complex (SMC) in San Miguel County, Colorado. The <br /> hydrogeologic study was conducted to support regulatory permitting requirements for the SMC, <br /> as administered by the Colorado Division of Reclamation, Mining and Safety (DRMS) and the <br /> U.S. Bureau of Land Management (BLM). The objective of the study was to characterize the <br /> hydrogeology of the SMC area and formulate a conceptual hydrogeologic model such that <br /> groundwater resources can be conserved and managed appropriately and potential impacts <br /> from mining operations can be adequately addressed. <br /> This report is the result of a study that focused on the compilation and interpretation of regional <br /> and local geologic and hydrologic information, reports and other documents associated with the <br /> SMC, data from installed groundwater monitoring wells, data obtained from existing vent shafts, <br /> and data obtained from past underground groundwater observations and sampling activities. <br /> Mine Site Description <br /> The SMC is a complex of five uranium and vanadium mines located in western San Miguel County, <br /> Colorado. Mining has occurred at the SMC since the 1950s. The mining permits and leases have <br /> changed ownership multiple times over the years and are currently held by Pinon Ridge Mining LLC <br /> (PRM). PRM authorized this hydrogeological study and will continue to assess the hydrology at the <br /> SMC as needed.The five mine portals are located along strike of the lower slope of a northwest <br /> trending cuesta that separates Big Gypsum Valley from Disappointment Valley(see Figures 1-1 and <br /> 1-2). The area is considered an and to semi-arid climate and receives approximately 8 to 12 inches of <br /> rain per year. <br /> The uranium and vanadium deposits occur in the Salt Wash Member of the Morrison Formation, <br /> specifically in a sandstone unit referred to as the Top Rim Sandstone. Mining has occurred at all five <br /> mines by driving a main decline down dip within the Top Rim unit and then mining in cross drifts with <br /> a room and pillar technique in the mineralized zones,which has resulted in a catacomb network of <br /> workings. PRM is in the process of mine construction, rehabilitation, and planning and intends to <br /> resume production of ore at the SMC. <br /> Western Water& Land, Inc. vii <br />