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• • <br />Division of Minerals & Geology <br />Permit No. M-84-014, JD-8 Mine <br />January 15, 1997 -Page 2 <br />Beginning in approximately 1980, the world market for <br />vanadium, as well as many other metals, went into a rapid <br />response to the conditions, large world inventories glutte~ <br />and greatly decreased demand sent metal prices into a st <br />spiral. Widespread and large scale layoffs occurre~ <br />producers, including Cotter, radically cut or curtailed p~ <br />downsized their operations. The uranium and vanadium mir <br />went into a true depression. During this period of decline <br />mining industry, the JD-8 Mine was forced to lay off employ <br />development activities. <br />uranium and <br />decline. In <br />t the market, <br />eep downward <br />l as metals <br />oduction and <br />ing industry <br />in the metal <br />yes and cease <br />The Mines development activities were suspended in 1986, b t Cotter has <br />continued to conduct activities which are now defined in the Mineral <br />Rules and Regulations as mining operations. Accordingly, t e ability to <br />produce ore from the Mine and process it through a milling facility has <br />been actively maintained, thus allowing the Mine to r main as an <br />intermittent operation. As such, the operation is maintain d in a ready <br />state with an ability to come on-line quickly and produce s the market <br />dictates. <br />While there is a definite future for the uranium/van dium mining <br />industry as reflected in recent price increases, and specifically the <br />JD-8 Mine, that future will be subject to the world eco omy and the <br />world market for the product. In addition, the abilit to operate <br />competitively on a highly efficient smaller scale will i fluence the <br />future of the industry and the Mine. With the recent cha a in import <br />laws and the recent price increases, a turnaround could o ur rapidly, <br />as evidenced by the changes within the primary copper ind stry during <br />late 1987 and 1988. Thus, Cotter must be prepared to alte the extent <br />and short-term duration of operations at the Mine on a very short notice <br />in order to efficiently meet changes in market demand fo uranium or <br />vanadium. With this change of events, it is evident tha the Mining <br />Plan section of the permit no longer accurately refl cts present <br />realities at the Mine site. Therefore, the decision was m de by Cotter <br />to revise the existing permit through the technical revisi n process in <br />order to update and to more accurately characterize the resent Mine <br />operation and its synchronization with present and f ture mining <br />activities and, accordingly, terminate its temporary cessa ion status. <br />Mining Operations Since 1987 <br />Since 1987, many activities have been undertaken at the JD- Mine which <br />constitute mining operations according to the current defi ition in the <br />Mineral Rules and Regulations. Over the most recent ten year period <br />$578,764 were spent at the mine (an average of $57,876 er year) on <br />activities of this nature as well as mine maintenance. T e activates <br />which constituted mining operations included: surface and underground <br />drilling, determining ore reserves, radiometric scanning, o e sampling, <br />mine mapping, mine feasibility studies, geological report reparation, <br />mine surveying, timber installation, repair and ground control in <br />preparation for mining, ventilation fan installation for eologic and <br />survey projects. <br />