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Denison Mines (USA) Corp. <br />1050 17th Street, Suite 950 <br />xDenver, CO 80265 <br />IDENISOND j v USA <br />MINES Tel : 303 628-7798 <br />Fax : 303 389-4125 <br />V.-? <br />EC?w? www.denisonmines.com <br />February 18, 2009 <br />Kectama??o ? ?' <br />Bob Oswald pivis?on of and Safety <br />Department of Natural Resources M?nin9 <br />691 County Road 233, Unit A2 ( ' QM - <br />Durango, Colorado 81301 <br />?" <br />Re: Notice for Sunday Mines Complex 112 Reclamation Permit, M-1977-285 for movement of two vent <br />holes. <br />Dear Bob: <br />As discussed in the Amended Sunday Mines 112 Reclamation Permit (M-1977-285); "additional vent holes will <br />be required to support future operations at the mine; however, the location of these vent holes was (at the time of <br />the amendment] undetermined. Uranium and vanadium mineralization incurs in layers that range in thickness <br />front it few inches to in excess of 8 feet. The average ore thickness is 2.7 to 3.0 feet. The ore Body is located <br />below approximately 500 to 750 feet of cover. The majority of the ore is formed in tabular .sandstone bodies, and <br />the deposits were formed when uranium and vanadium enriched groundwater flowed through reducin0 <br />environments. The reducing environment resulted in precipitation of the uranium and vanadlurn minerals ill <br />tabular shaped ore bodies contained in fluvial systems within the Morrison Salt Wash Member. This distribution <br />of mineralization makes mine planning without surface exploration extremely difficult. In addition, the <br />variability and sinuosity of the ore necessitates mining with random room and pillar methods. <br />Based on this information, two of the previously proposed vent holes approved in our Sunday Amendment (May <br />2007) need to be relocated to the locations shown on Figure 9A. Vent Holes S-12 and S-13 will not he placed in <br />the locations previously shown. The two proposed vents (S-12A & S-I3A) will have the same pad area as the two <br />previously proposed holes and are adjacent to existing roads. It is estimated that 100 feet (or less) of access road <br />will he needed for the new proposed vents and that the pad area for each will he 0.25 acres 10.5 acres total). The <br />access roads for the previously proposed vent holes were estimated to be 4.056 feet in length and will no longer <br />he needed. The table below shows the previously proposed disturbed area, the new proposed disturbed area, and <br />the difference between them. <br />Difference in Disturbed Area <br />Previously Proposed Disturbed Area <br />Aco'."" 1-,10" t4.0)'(" .\ I,' 1.12 Acres <br />Vcnt Ilolc I"Ids (S- I' & S- 13) 0?5 acres ea. 0.5 Acres <br />New Proposed Disturbed Area <br />ACCC. , Road" l'00' \ I'') 0.06 Acres <br />Vent Hole Pads CS- I'A & S- 13A) - 0.25 acre, ca. 0.5 Acres <br />Difference in Disturbed Area (no longer needed) 1,06 Acres <br />It is estimated that the drilling for each hole will take I week (2 weeks total construction) and concurrent <br />reclamation, as specified in the permit, will occur inunediately following reclamation. Due to the time frames <br />required to amend Denison's Bureau of Land Management Plan of Operations over the past two years, and