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• ephemeral drainage. Once the mine is operating, the water flowing into the mine will be used in <br />mining operations for drilling and dust suppression. Energy Fuels has obtained a water right to use this <br />water. As discussed in Exhibits G and T, mine water discharge will not be required or will only be <br />needed intermittently during active mining operations. <br />Energy Fuels plans to implement a program for minimizing ground water inflows into the mine <br />workings. This will include evaluating the seepage around the casing of the Ten Straight vent shaft and <br />grouting the casing to plug off or reduce water inflows. Historic drill holes encountered during mining <br />that are open and producing water will also be plugged or grouted. It is believed that this will reduce <br />the amount of water entering the ore bearing zone from above thus preserving some of this water in the <br />upper aquifers while lessening the amount of water that will be treated at the Whirlwind surface area. <br />Additional details regarding ground water control are presented in Exhibit T. <br />2.3 Mine Operations <br />A typical equipment list for the underground operation is presented in Section 4 of this exhibit. <br />• Jacklegs operating on compressed air will be utilized to drill the blast holes and rock-bolt holes in the <br />drifts and production areas. A larger jumbo drill may also be used in the development areas if <br />conditions warrant. The ore averages about three feet in thickness but the drifts are approximately nine <br />feet in height while the stopes or rooms are a minimum of six to seven feet in height. In order to avoid <br />excessive dilution of the ore, much of the waste will need to be drilled and shot separately from the ore <br />using what is referred to as "split shooting." <br />Blasting operations will be conducted in accordance with MSHA regulations (30 CFR Parts 56 and <br />57). Blast holes will be loaded with a blasting cap, chemical booster, and a mixture of ammonium <br />nitrate and fuel oil (ANFO) prills. The blasts will be initiated using anon-electric system (nonels) with <br />the hole pattern, firing sequence, and delays designed to allow for optimum breakage and minimum <br />ore dilution. Explosives and detonators will be initially stored in powder magazines located on the <br />surface near the portal. These magazines will be relocated underground once the mine expands in size. <br />Explosives will be transported from the magazines to the working face in accordance with MSHA <br />regulations (30 CFR Part 56 and 27 CFR Part 55). <br />• <br />Whirlwind Mine 07 (rev. April 08) D-5 <br />