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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-306 <br />INSPECTION DATE: 10-5-05 INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal program established by the Colorado Division of Minerals and <br />Geology for Uranium Permit Areas. The JD-9 Mine is currently under Division review as a possible DMO site. <br />Glen Williams, Cotter's representative accompanied the inspector on site. <br />The JD-9 Mine is in full production currently. The inspector notes that additional waste materials aze being brought <br />out to the dump area along the northwest waste pile zone. Cotter is maintaining a safe buffer so that materials are <br />not being deposited in a manner that will impact the adjacent drainage. Cotter was gobbing waste underground. <br />However, the Department of Energy asked that the activity be stopped as it could impact possible low-grade ore <br />zones of future interest. This decision may require Cotter to look at expanding the permit acreage, possible to the <br />south to accommodate more surface deposition. <br />A suggestion by Division staff to extend the dewatering pipe beyond the current waste piles was noted as being <br />implemented. This will help prevent contact between the waste rock and additional water that could allow elements <br />of concern from migrating off site. <br />The ore stockpile area is located in the southwestern portion of the current waste pile area. Stormwater controls <br />including berms and grading prevent run-off with sedimentation from leaving the immediate azea. There is <br />approximately 30 tons of ore stockpiled on site at this time. <br />The only issue of concern at this site is the continued practice of leaving oil and other petroleum based products <br />outside of proper secondary containment. All barrels and containers, both full or empty are required to be within <br />some kind of secondary containment structure that helps contain a possible release and protects containers from <br />possible damage. This is an issue, that may be revised to a problem should appropriate measures not be instituted. <br />The inspector will review the measures during the next visit. <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 and silt appear to be working properly. <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, CO 81424 ^ HMWMD (CH) <br />^ WOCD (CH) <br />^ OTHER <br />