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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 />V <br />February 9, 2009 <br />Christy Woodward <br />Denison Mines (USA) Corp. <br />1050 17`h Street, Suite 950 <br />Denver, CO 80265 <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <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 />,/ V <br />Re: St. Jude Mine, Permit M-1978-039 HR, Environmental Protection Plan, Clarification of Due <br />Date for Submittal, and DMO Permit Amendment. <br />Dear Ms. Woodward, <br />In response to your recent letter indicating confusion over the due date for the submittal of the <br />Environmental Protection Plan (EPP) that Denison is preparing for the above-named permit, the <br />Division would like to provide clarification of the timeframe and the subsequent permit amendment <br />requirement. <br />On February 8, 2008, Denison received the formal notice of determination of designated mining <br />operation (DMO) status from the Division. Due to the complexity and anticipated time necessary for <br />concurrently preparing an EPP for'this permit and five others, Denison requested that the due date be <br />set for 365 days after receipt of the Division's notice. The extended timeframe was approved, and the <br />due date for the EPP was set for February 7, 2009. <br />On June 6, 2008, the Division sent a letter to Denison, that described the implementation of new <br />legislation (BB 1161) which changed the definition of a designated mining operation (DMO), and <br />stated that all uranium operations, including the St. Jude Mine, were now defined as DMOs. The <br />DMO requirements cited in that letter may have been misinterpreted to have reset the 365-day <br />timeframe for submittal of the EPP, to be based on the receipt of this second notice. <br />The Division agrees that Denison has demonstrated steady progress in the data collection, report <br />preparation and submittal of several of the important portions of the EPP. The Division recognizes <br />that the final EPP is not ready for submittal, and additional time is needed for EPP completion and <br />submittal as an amendment to Permit M-1978-039 HR. The Division also acknowledges the potential <br />for confusion regarding the due date for submittal. Therefore, the Division is extending the EPP due <br />date and clarifying the deadline for amendment of the application. <br />Pursuant to BB-1 161, Denison Mines must submit a completed EPP and all materials necessary to <br />amend the existing 110(2) permit to a 110d permit by June 8, 2009. <br />Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango <br />K,4 <br />Office of <br />Active and Inactive Mines