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61?11ti <br />ENERGY FUELS RESOURCES ? <br />CORPORATION <br />November 24, 2008 <br />V <br />G. Russell Means <br />Colorado Division of Reclamation, Mining and Safety NOV 2.62008 <br />101 South 3rd, Suite 301 GRAND JUN(; i N.iri CICLD OFFICE <br />Grand Junction, CO 81501 - - - -DIVISION-OF - <br />RECLAMATION MINING & SAFETY <br />Re: Temporary Cessation, File No. M-2007-044 <br />Whirlwind Mine,` Iesa County, Colorado DEC 11 2008 <br />Dear Russ: <br />Division of Reclamation, <br />Mining and Safety <br />Energy Fuels Resources Corporation temporarily ceased production at the Whirlwind <br />Mine on November 20, 2008 and is providing notice to the Division of Reclamation, <br />Mining, and Safety (DRMS) per Section 1. 13.5 of the Colorado Hard Rock/Metal Mining <br />Rules and Regulations. This cessation occurred because we have not been able to secure <br />a favorable long-term sales contract with the White Mesa Mill operated by Denison <br />Mines. This was largely due to the current depressed spot market price for uranium. We <br />anticipate that the mine will be on standby for 180 days or more. <br />The mine will be maintained in its current condition so that production may resume on <br />short notice when market conditions improve. Mine personnel will be on site periodically <br />to conduct mine safety inspections, environmental monitoring, mine dewatering, and <br />maintenance. Property gates, buildings, and portal doors will be locked to discourage <br />unauthorized access when mine personnel are not present. Most of the mine equipment <br />will be temporarily removed from the site for storage at our Nucla office. Our current <br />plans are to continue to pump mine water to the surface where it will be treated and <br />discharged on an intermittent basis. The mine will be ventilated only when personnel <br />need to go underground. <br />Environmental inspections and monitoring required by our 112d Permit and other permits <br />will continue during the standby period. This includes sampling and analyses of the <br />recently installed groundwater monitoring well. As you are aware, we do not have an ore <br />stockpile at the mine at this time; accordingly, all surface drainage from the Whirlwind <br />portal area will be routed to the sedimentation pond. Erosion control measures will be <br />implemented as needed to maintain the surface area in a stable condition. As discussed <br />during the recent site inspection by DRMS and the Bureau of Land Management, we will <br />also seed and mulch the subsoil stockpile. <br />Fnerg),' t"Lwls csotirccs % onporation. 44 Union %Ltlevard. SL!itc 600 <br />Lakewood, ("O 80128 'hone: 303-474-2140