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0 Section 1 <br />Introduction <br />1.1 Purpose of Investigation <br />This environmental geochemistry investigation of rock and soil material at the Sunday Mines <br />Group, which is operated by Denison Mines (USA) Corporation (Denison), was conducted to <br />provide information regarding the potential Designated Mining Operation (DMO) status and <br />support preparation of an Environmental Protection Plan (EPP) for the mines. The Sunday <br />Mines Group is located in San Miguel County, Colorado and includes: <br />¦ The Sunday Mine; <br />¦ The Carnation Mine; <br />¦ The West Sunday Mine; <br />¦ The St. Jude Mine; and <br />¦ The Topaz Mine. <br />The mines produce uranium and vanadium ore from mineral deposits of the Uravan District, <br />• one of the major uranium-producing mineral districts in the United States. The ore is <br />transported to a mill located approximately 140 miles to the west in Blanding, Utah for mineral <br />processing. Mines in this area have been active on an intermittent basis since the 1950's. A map <br />showing the location of the mines is included as Figure 1-1. <br />This work was initiated in response to notice by the Colorado Division of Reclamation, Mining <br />and Safety (DRMS)(DRMS 2008a) that they were re-classifying mines within the Sunday Mines <br />Group as DMOs, as provided for by the Mineral Rules and Regulations of the Colorado Mined <br />Land Reclamation Board for Hard Rock, Metal and Designated Mining Operations (HRMMR). <br />This investigation is consistent with the Phase 1 data collection activities described in Denison 's <br />memorandum to DRMS (Denison 2008) and DRMS' May 9, 2008 response letter (DRMS 2008b) <br />to Denison approving (with comment) the proposed program for environmental analysis at the <br />Sunday Mines Group. To support data collection activities, a work plan was developed for the <br />evaluation of metals concentrations and physical properties of mine development rock, ore, and <br />soils at the Sunday Mines Group (CDM 2008a). <br />During development of the sampling work plan, the Colorado Mined Land Reclamation Act <br />(Colorado Revised Statutes (CRS) Title 34, Article 32 [CRS §34-32]) was amended via Colorado <br />House Bill (HB) 1161 as signed into law by the Governor on May 20, 2008. The revised statute <br />changed the definition of a DMO to include all uranium mine operations including <br />conventional underground uranium mines such as the Sunday Mines Group. Revised <br />regulations have not yet been adopted by the Colorado Mined Land Reclamation Board to <br />address CRS §34-32-103. This investigation is consistent with this change in the DMO definition <br />• and associated information provided by DRMS to Denison in a June 6, 2008 letter <br />(DRMS 2008c). <br />cm 1-1 <br />T:M986Denison Mines%Task Order 3 - DMO Sampling and Analysis Plan%Task 3.12 - Soil, Ore, Rack Data Assessment RepomSunday Rock Reporlttinel mport%ReporWinal Sunday Mines Group Soil Ore Rock <br />Data Assessment Report051509.doc