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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1978-116 <br />INSPECTION DATE: 10-5-05 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part ofthe normal program established by the Colorado Division of Minerals and <br />Geology for Uranium Permit Areas. The SM-18 is currently under Division review as a possible DMO site. Glen <br />Williams, Cotter's representative accompanied the inspector on site. <br />The SM-18 Mine is in full production currently. The inspector noted approximately 50 tons ofore stockpiled on the <br />designated pad. Haul trucks were observed hauling material out to the dump area as well. <br />The ore stockpile area is located adjacent to the county maintained road. Stormwater controls including berms and <br />grading prevent run-off with sedimentation from leaving the immediate area. A sedimentation pond is also <br />collecting stormwater from the mine area and noted as working as designed. <br />The constructed drainage between the waste pile area and the topsoil stockpiles is working as designed as well. <br />Riprap and channels have directed recent precipitation into the noted retention pond area. No erosion or <br />sedimentation issues are noted at this time. <br />Fuel and petroleum products appear to be being stored correctly at this site. No unnecessary debris or trash is <br />accumulating on site. <br />The inspector visited the new vent hole area. An emergency lift has been placed on site with the fan. The area and <br />access road are clean and free of erosion and debris. <br />The Financial Warranty for this site will be reviewed as soon as the DMO issue is 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 of Minerals 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 ^ HW <br />CITY/STATE/ZIP: Nucla. C081424 ^ HMWMD (CH) <br />^ WOCD (CH) <br />^ OTHER <br />