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:~ INTRODUCTION
<br />Energy Fuels Resources Corporation (EFRC) proposes to reopen two underground uranium mines as a
<br />combined operation called the Whirlwind Mine. The two mines, the Packrat Mine and Urantah Decline,
<br />were previously permitted with the State of Colorado and BLM. The Packrat Mine operated from the
<br />1950s up to 1990 while the Urantah Decline was started in 1979, but ceased production in 1981 shortly
<br />after accessing the ore body. Both mines shut down due to depressed uranium prices and were later
<br />reclaimed in 2002 by their respective operators, Umetco Minerals Corporation (Umetco) and Cotter
<br />Corporation (Cotter). The reclamation was successfiil and the reclamation bonds on these properties
<br />were released in 2005.
<br />The Whirlwind Mine is located approximately 5 miles southwest of Gateway, Colorado in Mesa
<br />County. The Whirlwind property, which straddles the Colorado/Utah state line, consists of 206
<br />unpatented claims in the Beaver Mesa Mining District of the Uravan Mineral Belt. In Mesa County,
<br />•) Colorado, the claims lie in: Section 31, TS1N, R19W; Section 6, TSON, R19W; Sections 25, 26, 35, and
<br />36 of TS1N, R20W; and, Sections 1, 2, 11 and 12 of TSON, R20W, New Mexico Principal Meridian
<br />(NMPM). In Grand County, Utah, the claims lie in: Sections 4, 5, 7, 8, 9, 16, 17, 18, 19, 20, and 21 of
<br />T25S, R26E, Salt Lake Based Meridian (SLBM). The claim block encompasses approximately 4,890
<br />acres. The unpatented claims are on public land administered by the U.S. Bureau of Land Management
<br />(BLM). The mineral rights aze controlled by Energy Fuels through long-term lease agreements with the
<br />claim owners.
<br />The Beaver Mesa Mining District has seen production of radium, vanadium, and uranium ores since
<br />early in the 20`~ century. Numerous underground mines on the Whirlwind property and surrounding
<br />land within one mile of the claim group perimeter have produced in excess of 7,000,000 pounds U30s
<br />and nearly 24,000,000 pounds V205. In addition to the Packrat Mine and Urantah Decline, the claim
<br />block includes the following mines: Bonanza, Lost Dutchman, Hubbazd, Lumsden #2, Rajah 49, Austin
<br />#4, and the Rajah 30. Ore production is derived from fluvial sandstones, mostly in the upper part of the
<br />Salt Wash member of the Morrison Formation.
<br />Whirlwind Mine June 07 i-1
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