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ST~TE~ OF COLOIZ~DO <br />'~~ DIVISION OF RECLAMATION, MINING AND SAFETY ~~~ <br />"''~ Department of Natural Resources <br />1313 Sherman St., Room 215 COL 0 RA D O ~~~ <br />Denver, Colorado 80203 D[ v t S t o N o f ~~ i <br />Phone: (303) 86b-3567 ~~~~ RECLAMATION <br />FAX: (303) 832-8106 ~ MINING <br />~_ <br />SAY 1 ~ 20~$ SAFETY <br />sedama4i~, Bill Ritter, Jr. <br />May 9, 2008. ~.:::.:: end Safrrtj9 Governor <br />Harris D. Sherman <br />MS. Christy WOOC1Ward Executive Director <br />Denison Mines (USA) Corp. Ronald w. cottony <br />~~lOSO Seventeenth Street, SUlte 9SO Division Director <br />Denver, CO 8O26S Natural Resource Trustee <br />Re: Division Response to Operator's Memo (Draft dated March 31, 2008) Concerning a Proposed Program <br />for Designated Mining Operation (DMO) E ironmental Analysis, at the Sunday Mine Complex and Van 4 <br />Mine. Pertaining to: <br />,/ <br />Sunday Mine, Permit M-.1977-285; Carnation Mine, Permit M-1977-416v <br />St. Jude Mine, Permit M-1978-039 HR; Topaz Mine, Permit M-1980-OSS HR; <br />West Sunday Mine, Permit M-1981-021; and Van 4 Mine, Permit M-1997-032. <br />Dear Ms. Woodward, <br />This office has reviewed the above-named Memo, which was submitted as a response to the Notices of <br />Determination of DMO that the Division delivered to Denison Mines, for the six permitted uranium mines <br />captioned above. The Memo discusses benison's proposed plan for commencing the testing and background <br />analyses at the sites for eventual classification of each mine as a DMO or non-DNIO. I wish to point out one <br />small item that appears erroneously throughout benison's Memo, but which should be corrected: the permit <br />number of the Van 4 Mine is actually M-1997-032. <br />The proposed sampling at the three 110(2) permits, for which three representative samples of waste rock from <br />each site will be taken, as well as one composite ore sample, is acceptable. Likewise, this same proposed <br />sampling regime at the three 112 permits is acceptable. <br />Regarding the water quality and geocliemical testing, the Division's staff geochemist reviewed the Memo, and <br />found the overall regime acceptable, but made the following recommendations: <br />1) For the early rounds of groundwater sampling (i:e., quarterly for approximately the first year), the list of <br />proposed water quality analytes on page 4 should be expanded to include all parameters listed on Table <br />1 through 4 in CDPHE Regulation 41 -Basic Standards for Ground Water. Parameters that repeatedly <br />show concentrations below detection limits may be dropped from the program in future, but not in the <br />early stages. Denison and the Division should discuss the issue of dropping parameters before doing so. <br />The following parameters may be omitted altogether: Total Coliforms, Asbestos, Free Cyanide, <br />Chlorophenol, Color, Corrosivity, Foaming Agents, Odor, and Phenol. The link for Regulation 41 is: <br />http://www.cdphe.state.co.us/regulations/wgccreus/ 100241 basicstandardsforgroundwater.pdf. <br />2) The analyses for surface water samples should be equally comprehensive, to include all parameters on <br />Tables I through III in CDPHE Regulation 31 -Basic Standards and Methodologies for Surface Water. <br />As stated above, parameters may be dropped from later sampling if they continue to return below <br />Office of Office of <br />AAinnrl I an~I Rar'amatinn Denver • Grand (unction • Duraneo Active and Inactive Mines <br />