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~ ~ III IIIIIIIIIIIIIIII STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmem of Natural Resources 1313 Sherman SL, Room ? I S Denver, Color, do 8020] Phone (3031 ft66 3567 FA%; 13071 ftJDfl l l)fi August 1, 1996 Ms. Michelle R. Rehmann Environmental Coordinator Energy Fuels Nuclear, Inc. ryc.;r, 1515 Arapahoe Street, Suite~36 Denver, CO 80202-2110 RE: DMO DETERMINATICIN -West Sunday Mine -Permit No. M-81-021 And Sunday Mine - Permit No. M-77-285 Dear Ms. Rehmann: I~~~~ DEPARTMENT OF NATURAL RESOURCES Ruy Numer Guvcmur lame. S LochheaA Eunnive Direcmr hLr haeB LnnF Drvrciun DneUOr The Division completed its review of your August 1995 submittal for an exemption from DMO determination. It is the Division's decision that the operator did not satisfactorily demonstrate that the operation is not a Designated Mining Operation. Specifically, the operator did not demonstrate that toxic-forming materials will not be exposed or disturbed in quantities sufficient to adversely affect human health, property or the environment. Pursuant to Rule 7.2.4{1)(a) "If the operator/applicant does not satisfactorily demonstrate to the Office that the operation is not a Designated Mining Operation, the Office shall make a final determination that the operation. is a Designated Mining Operation". In order to demonstrate that toxic-forming materials are or are not exposed or disturbed in quantities sufficient to adversely affect human health, property or the environment, the operator will be required to collect samples from the waste dumps for chemical analyses. The material should be analyzed, primarily, for uralrium and vanadium. Since the biggest problem with waste rock is the potential long-term exposure to ionizing radiation from Radium-226, collection of the samples can be determined by radio-metric surveys. Only those samples that exhibit high radioal;tive constituents (high scintillometer readings) need to be collected and analyzed. The operator will be required to collect an adequate amount of samples from the Sunday and West Sunday waste dumps by August 31, 1496. The results of the analyses must be submitted to the Division by September 30, 1996.