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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 9, 2008 <br />Ms. Christy Woodward <br />.Denison Mines (USA) Corp. <br />~ 1050 Seventeenth Street, Suite 950 <br />Denver, CO 80265 <br />.~~~ <br />MpY 1 ~ 2408 <br />nstvp,~~st~ ~:,ta d S { 4y n. <br />Mining <br /> UJ <br /> ~,~ w <br />COLORADO `~(~~ <br />D I V I S I O H O F <br />RECLAMATION <br />MINING <br />E <br />SAF <br />TY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />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) Environmental Analysis, at the Sunday Mine Complex and Van 4 <br />Mine. Pertaining to: <br />Sunday Mine, Permit M-1977-285; Carnation Mine, Permit M-1977-41.6; <br />St. Jude Mine, Permit M-1978-039 HR; Topaz Mine, Permit M-1980-055 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-DMO. 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 geochemical 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/re~;ulations/wgccregs/100241 basicstandardsforg_roundwater.pdf. <br />2) The analytes 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 />AAinarl ~ and Rarlamatinn Denver Grand Junction • Duran>;o Active and Inactive Mines <br />