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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1984-014 <br />INSPECTION DATE: 10-5-05 INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was conducted as part ofthe normal program established by the Colorado Division ofMinerals and <br />Geology for Uranium Permit Areas. The JD-8Mine is currently under Division review as a possible DMO site. <br />Glen Williams, Cotter's representative accompanied the inspector on site. <br />The JD-8 Mine is in full production currently. The inspector notes that additional waste materials are being brought <br />out to the dump area along the southeast waste pile zone. The disturbance within this area is new but part of the <br />approved plans for the site. The prime objective currently is to establish a more direct and wider road for equipment <br />and ore haul trucks. The secondary goal will provide additional dumping space for waste materials. The area has <br />been stripped of topsoil as much as possible. Large boulders and underlying bedrock make total stripping <br />impractical. The permitee has used an excavator to work around these obstacles as much as possible while <br />maintaining some economic feasibility. Topsoil has been stockpiled along the northwestern section of the permit <br />area. The inspector noted some minor erosion from recent rains. The permitee needs to install some silt fend ~ at <br />the low point in the access road to the topsoil area to ensure no off-site impacts and loss. Seeding of the stockpile <br />will be done after the permitee is reasonably sure o more is to be added. <br />The ore stockpile area is located in the north-central portion of the current waste pile area. Stormwater controls <br />including berms and grading prevent run-off with sedimentation from leaving the immediate area. There is <br />approximately 40 tons of ore stockpiled on site at this time. The JD-8 site is the most cramped for space and as <br />additional room come available the permitee will be making improvements such as a building and bigger staging <br />area. <br />The site has had some significant rainfall in the past few days. No erosion or sedimentation issues, other than those <br />noted were observed. All control measures such as grading, benning and silt fencing appear to be working properly. <br />Fuel and petroleum products appear to be being stored correctly at this site. <br />The Financial Warranty will be reviewed for this site 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 Sduth 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 />