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7) Ventilation for the development and mining will require construction of a vent hole to be <br />. drilled from the surface into the Wright Mine stope in the NW%4 SW'/< of Section 27 <br />(Exhibit C). Access to this site will be by way of existing drill roads which will not need <br />to be substantially upgraded. A fan will be placed on the completed hole, which will <br />require a small concrete pad and some surface casing. Electric power will be acquired <br />from the nearby San Miguel Power Association line (see Exhibit C). A water tank and <br />pipe into the mine may also be located within the same 0.12 acres permitted for the vent <br />hole. This site is on land formerly covered by the Star No. 13 unpatented claim, which <br />Cotter abandoned in 2000, and is therefore now withdrawn as part of the D.O.E. uranium <br />reserve. A second possible vent hole might be needed in the NW'/e S W'/ Section 27, on <br />Cotter's private land. <br />Nature of the Ore Deposit <br />The uranium-vanadium deposits to be mined aze typical of the Colorado Plateau "sandstone- <br />type" deposits of the Uravan Mineral Belt. These occur in the upper sandstone unit (Top Rim) of <br />the Saltwash Member of the Morrison formation. The habit of the ore is thin, erratic and <br />unpredictable, being controlled by subtle physical and chemical changes within the host <br />sandstone (e.g. cross-bedding, clay and carbon content, thin mudstone seams). The horizon to be <br />mined lies beneath the south slope of Spring Creek Mesa, varying in depth from about 260 feet <br />to 550 feet. The Top Rim sandstone unit ranges from 60 to 100 feet thick with most of the ore <br />occurring about 1 /3 to % the way up from the base. The ore is typically thin, but the mineralized <br />zones range up to 10 ft. thick. More than one mineralized horizon occurs in some azeas. <br />Overlying the Salt Wash Top Rim sandstone is the Brushy Basin member of the Morrison <br />formation. It is predominately vaziegated, laminated mudstones, and is interbedded with lesser <br />amounts of sandstone and thin conglomerate lenses. Immediately below the mined horizon will <br />be the basal part of the Top Rim sandstone, which is fne-grained, quartz-rich, with minor <br />feldspar content, and is cazbonate cemented. Mudstones occur as thin, discrete lenses within the <br />Top Rim sandstone and are locally directly below the ore to be mined. <br />The uranium and vanadium bearing material wilt be sent to Cotter's Mill in Canon Ciry, <br />Colorado to be sepazated into concentrates of U30s and V205, which will ultimately be used as <br />electricity generating fuel and steel alloys, respectively. <br />n <br />LJ <br />SM-18 Application for Technical Revision -Page 4 - 7/14/2004 <br />