2008-09-04_HYDROLOGY - M2007044 - Laserfiche WebLink

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ENERGY FUELS RESOURCES CORPORATION July 22, 2008 Attn: Mrs. Kelly Morgan Colorado Department of Health Water Quality Control Division 4300 Cherry Creek Drive South Denver, CO 80246-1530 RE: Notification of WET Test Failure Dear Mrs. Morgan: Per our telephone conversation on July 10, 2008, Energy Fuels Resources Corporation (Energy Fuels) is providing this notification of failure of the Whole Effluent Toxicity (WET) test for a sample collected from the Whirlwind Mine Treatment Plant, located at 30100 5110 Road in Gateway, Colorado. Discharge from this treatment plant is permitted under CDPS Discharge Permit #CO-0047562. Energy Fuels has conducted routine chemical testing of the plant discharge on a weekly basis, when discharging, since late November 2007 when the plant became operational. WET testing has been conducted quarterly since that time on December 17-21, 2007, March 24-26, 2008, and June 24-26, 2008. The December 2007 and March 2008 WET tests passed. The most recent WET test indicated a statistically significant difference in lethality between the control and effluent concentration of 100%. Below is a summary of the results of this WET test: Ceriodaphnia dubia IC25 Survival 81.25% IC25 Reproduction 20.44% Pimephales promelas IC25 Survival 78.13% IC25 Growth 66.81% NOEC Survival 75% NOEC Reproduction 12.5% NOEC Survival 25% NOEC Growth 50% A copy of the full WET test report, prepared by Aqua-Tox, Inc. on July 8, 2008, will be submitted to the Water Quality Control Division (WQCD) with the June 2008 Discharge Monitoring Report (DMR), due on July 28, 2008. Energy Fuels will be performing a Preliminary Toxicity Investigation (PTI) to determine the cause of the WET Test failure. The water treatment plant currently discharges water only 3 V.nerev Fuels, Inc. 44 Union Blvd, Suite 600 i3'1Aw.energyluels.canl 1..al e,w(iod, Cok)rad(i 90228 Phone: 303-x)14-21X10 Fax : 303-974-2141