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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1979-094 <br />INSPECTION DATE: 8-5-08 <br />INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The JD-7 Open Pit Mine is a 112 permitted site. Glen <br />Williams, Mine Manager for Cotter Corporation accompanied the inspector on site. <br />Signage was observed at the access gate to the site. Permit boundary markers are not noted in all areas but the <br />footprint of the disturbance is easily discernable. The toe of dump slopes is well within the property and permit <br />boundaries. <br />No activities have been conducted as far as ore or waste production at the site. Cotter has done some drilling and <br />exploration of alternative mining techniques at the site in the last few years. Highwalls within the pit have debris <br />fans noted on catchment benches. There has been some historic minor slumping in a few areas but observations <br />indicate no recent issues. In May of 2008, CDPHE sent an inquiry to Senior Carl Mount regarding a possible <br />rotational failure on the north waste piles. The inspector visited the exact spot and notes the following: The area <br />that appears to be a stability issue is actually a scar from a project in 1996. Cotter Corporation, in conjunction with <br />CDPHE buried some low level radioactive ore materials at the toe of the dumps. (CDPHE permit #369-02) DRMS <br />approved the project under Technical Revision TR-003 in 1996. From a distance the scar does look like a stability <br />issue. However, close inspection noted signage for the project, good vegetation and only some minor erosion issues. <br />Vegetation is limited to volunteers on waste dumps and other disturbed areas. A few Canadian thistles and <br />knapweed were noted near the access gate to the lower toe of the dumps and at the main access road which should be <br />treated to prevent a full blown infestation in other areas of the permit. <br />The Division holds a bond of $39,000.00 of a $1,245,000.00 bond. DOE holds the balance of the bond. The <br />estimate was updated in 2005 and reflected an increase from the amount held. An update is not required at this time <br />since there have been no activities that have significantly impacted the site. <br />No issues or problems are noted. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3'd Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address <br />NAME: Glen Williams <br />OPERATOR: Cotter Corporation <br />STREET: P.O. Box 700 <br />CITY/STATE/ZIP: Nucla, CO 81424 <br /> cc: <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? WQCD (CH) <br />? OTHER