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,RjLlM t~ ~ti~ I,0 C~ <br />Cotter Corporation File CO-076-96-N-Ol <br />Phone conversation record <br />I called Bob Schwind of Cotter Corp on 7-29-96 to discuss their 7-22-96 letter <br />on the uranium exploration drill holes on Beaver Mesa. The drilling program <br />was conducted on the Liberty claims associated with the Urantah Mine. The <br />letter contained all plugging and water information required in the BLM <br />stipulations. <br />The water sample was taken from hole JB-96-Z. Ground water was present in <br />the Brushy Basin and Salt Waeh ore horizon. Bob said they logged the hole to <br />determine the depth to the ore horizon, then blew out the hole, then attached <br />a bailer to the logging probe unit, and lowered it to take a sample. The 572' <br />reported ae the static water level was not the static level. This was the <br />level soon after the hole was blown out and the level was rising. Since the <br />water sample was commingled from 2 water zones, it ie not known how much of <br />the ore-bearing zone is represented, but based on the estimated inflow from <br />the 2 zones, the Hrushy Basin water zone should be the leading contributor. <br />Surprisingly, however, the water analyses shows elevated concentrations of <br />radium 226 (30.3 pCi/L) and gross alpha/beta, more characteristic of the ore- <br />bearing zone. The radium levels are similar to levels from the portal <br />discharge of the Rajah 30 Mine. This may indicate that ground water quality <br />is lowered naturally in the unmined ore body. It was agreed that an exchange <br />of ground water quality data between Umetco and Cotter would be beneficial. I <br />told Sob I would provide Umetco with a copy of the water analyses. <br />On another issue, Bob indicated that the Urantah Mine could be reopened if <br />uranium prices continued to rise. He said the ore reserves are good (vanadium <br />and uranium) and they need to develop their State lease in Utah from the <br />Urantah portal. He wants to resolve the issue of the contaminated material <br />stockpiled on the site for which Umetco is responsible for. They can't get a <br />state permit to rehab the v/g workinge'until Umetco ie released from or <br />® transfers their permit. Umetco has agreed to take the material to the Packrat <br />Mine for use in reclamation but the reclamation work ie not scheduled to be <br />done until 2001. Bob thought this was too long to wait; he suggested that <br />Umetco could accept responsibility for the stockpiled dirt and still transfer <br />the permit of cotter. I said I would check into this possibility. <br />Bob said Cotter has 3 other properties (claims) in Mesa County with economic <br />ore bodies - Cone Mtn., Aviset (sp.?), and October Mine, all of which are <br />accessed from John Hrown Road. <br />/d ""~`~ <br />n ~- _ <br />---- - <br />