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1.0 Introduction <br />Lyntek Inc. was contracted by Energy Fuels Resources Corporation (Energy Fuels) to <br />develop a treatment method and portable water treatment system for the Whirlwind Mine <br />located in Mesa County, Colorado. Because of the relatively low volumes of water <br />present in the mine, Lyntek focused on developing a small, portable treatment system that <br />could be used to treat mine water during initial dewatering of the mine workings and that <br />could later be moved to other locations, if dewatering was no longer needed or needed <br />only intermittently at this site. <br />The Whirlwind Mine is an underground uranium-vanadium mine consisting of the former <br />Urantah Decline and Packrat Mine. These two adjacent mines were previously operated <br />by Pioneer Nuclear and Umetco, respectively. The mine workings were reopened under <br />exploration permits with the Bureau of Land Management (BLM) and the Colorado <br />Division of Reclamation, Mining and Safety (DBMS). Subsequent inspections of the <br />workings indicated that the lower portions of the mine workings were flooded and would <br />need to be dewatered before they could be accessed for mineral exploration. <br />Lyntek prepared a design report in Apri12007 that was used as supporting documentation <br />for Energy Fuels' applications for a discharge permit with the Colorado Division of <br />Water Quality Control and for modifications to the existing exploration permits with the <br />BLM and DBMS. The comments received from these three agencies resulted in changes <br />to the proposed treatment and monitoring system that are reflected in this revised report. <br />Lyntek designed and constructed the portable treatment system in September 2007. The <br />treatment system and water tanks, equipped with multiple liner systems, were installed in <br />October 2007 and came on line in November 2007. <br />Energy Fuels has also submitted applications for afull-scale mining operation at the <br />Whirlwind site. Although dewatering will be required to reopen the mine, once the mine <br />is operating, most of the water flowing into the workings will be consumed by mining <br />activities. This conclusion is based on historic information from the area and estimated <br />net water consumption for drilling and dust suppression. Energy Fuels anticipates that <br />treatment and discharge of mine water will only occur intermittently once mine <br />operations start. The recently constructed treatment system is expected to be more than <br />adequate to treat mine water during proposed mine operations. <br />The available historical data indicates that the average ground water inflow was 3 to 5 <br />GPM for the Urantah Decline and 1 to 2 GPM for the Packrat Mine, or about 4 to 7 GPM <br />total. Most of the ground water inflow is originating from the Brushy Basin geologic unit <br />above the mine workings, as the ore zone (Salt Wash unit) is relatively dry. The ground <br />water enters through the decline, an existing vent hole, historic drill holes, and natural <br />fractures in the rock. <br />3 <br />