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apparently sources from sands within the Brushy Basin shale member in the upper part of the <br />Morrison formation. <br />In some areas, the lower member is an aquifer, but on this mesa with many mine workings <br />perched several hundred feet above the Paradox Valley and cut by numerous steep canyons, the <br />potential aquifers are dry. It is found within the Salt Wash sandstone member of the Late <br />Jurassic age-Morrison formation which outcrops at the mine site. Two monitoring wells <br />penetrated this section and did not find a functional aquifer. Below the Morrison aquifer, shale <br />and mudstone of the Summerville formation acts as a confining unit separating the Salt Wash <br />sandstones from potential aquifers within the older Entrada sandstone, Kayenta formation, and <br />Wingate sandstone. <br />Groundwater flow within the Morrison aquifer is to the northwest in the vicinity of the project <br />(Freethey and Cordy, 1991). No data is available regarding the rate of flow. <br />(c) The Salt Wash sandstone member of the Late Jurassic age-Morrison formation outcrops at <br />the mine site (Carter, 1953). Sandstone predominates within this member and is interbedded <br />with shale, mudstone and a few thin lenses of dense limestone. The sandstone consists largely of <br />sub-angular to sub-rounded quartz grains. <br />(d) The Salt Wash sandstone member is cut by several high-angle west-northwest trending faults <br />within the project boundary and across Davis Mesa where the mine site is located. No <br />information is available regarding the fracture systems at the mine site. <br />(e) There is little information available regarding the hydrogeology of the Davis Mesa, but the <br />Last Chance Mine is dry. A description of those geologic strata that have the potential to <br />transmit groundwater is presented above in sections (b) and (c). <br />(9) Groundwater Quality Data <br />(a) There are no present groundwater uses within two miles down-gradient of the proposed <br />project. Four industrial water wells are owned by Energy Fuels at their Pinon Ridge Mill Site <br />about two miles east of the mine. All these wells are in the Paradox Valley to the east and <br />northeast of the mine site. They apparently tap the groundwater aquifer within the Upper <br />Triassic-age Chinle formation which is considerably below the mining zone of the proposed <br />project and separated from it by the Summerville formation confining unit. <br />One spring is found within two miles of the mine project site. It is located in the NWl/4, SW'/4, <br />Section 18, T46N, R17W. It is located over a mile to the south of the site, its source; is the <br />Brushy Basin shale member of the Morrison Formation which is structurally above the site <br />bedrock. Water has not been observed flowing from the spring, but vegetation suggests shallow <br />groundwater. <br />(b) Limited groundwater was recovered in a monitoring well drilled and constructed by <br />Nuvemco south of the Last Chance Mine site. Exhibit G - Water Information details the poor <br />quality of the limited water that was available in monitoring hole MMW L The well dried up and <br />no subsequent sampling has been possible. Both wells will be monitored monthly for five (5) <br />successive quarters and water sampled if discovered. Exploration drilling within the permit <br />boundary will further evaluate the presence or absence of groundwater and if encountered, a new <br />monitoring well will be constructed. <br />Last Chance Mine - April 2009 T-4