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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-284 <br />INSPECTION DATE: 10-5-05 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal program established by the Colorado Division ofMinerals and <br />Geology for Uranium Permit Areas. The JD-6 Mine /Mineral Joe Claims are currently under Division review as a <br />possible DMO site. Glen Williams, Cotter's representative accompanied the inspector on site. <br />The JD-6 Mine is in full production currently. The JD-6 uses the Mineral Joe Claims Area (M-77-284) and its <br />Duggan Adit for access, staging and surface operations. Based on switch in policy by the Department of Energy, <br />Cotter has ceased gobbing waste rock underground and must star[ depositing the materials on the surface. In order <br />to accomplish this, a new waste load out is under construction. Review of the file shows that it is not part of the <br />JD-6 permit but is noted in the Mineral Joe Claims reclamation plans and reclamation costs. Original thou hg t by <br />the inspector was that the construction would have to be addressed throueh a Technical Revision. Since it is covered <br />under the Mineral Joe, no further action is necessary. <br />The ore stockpile area is located below the ore load-out structure in the central portion ofthe current waste pile area. <br />Stormwater controls including berms and grading prevent run-off with sedimentation from leaving the immediate <br />area. A sedimentation pond is also collecting stormwater from the mine area and noted as working as designed. <br />There is approximately 75 tons of ore stockpiled on site at this time. <br />The site has had some significant rainfall in the past few days. No erosion or sedimentation issues were observed. <br />All control measures such as grading, berming and silt fencing appear to be working properly. <br />Fuel and petroleum products appeaz to be being stored correctly at this site. <br />The Financial Warranty for this site and the JD-6 will be reviewed for this site as soon as the DMO issue is <br />addressed. <br />No other issues are noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division ofMinerals and Geology, Grand Junction <br />Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address cc: <br /> ^ CE <br />NAME: Glen Williams ^ BL <br />OPERATOR: Cotter Corporation ^ FS <br />STREET: P.O. Box 700 p HW <br />CITY/STATE/ZIP: Nucla, CO 81424 ^ HMWMD (CH) <br /> ^ WOCD (CH) <br /> ^ OTHER <br />