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Section 1 <br />Introduction <br />1.2 Regulatory Background , <br />As defined in the CRS §§ 34-32-110 and 112, the Sunday Mines Group includes three 112 <br />permits and two 110(2) permits. The Sunday Mine, West Sunday and Topaz Mines are currently <br />permitted as 112 permits (regular operations) with permit numbers of M-1977-285j 'Al 198170211 1 <br />and M-1980-055 respectively. The Carnation and St. Jude mines are currently .permitteli as 1', 110(2) permits with permit numbers of M-1977-416 and M-1978-039. <br />Colorado House Bill 1161 (2008) redefined a DMO to include mining operations at which: <br />Uranium is developed or extracted, either by in-situ leach mining or by conventional <br />underground or open mining techniques. A uranium mining operation may seek an <br />exemption from designated mining operation status in accordance with Section 34-32'- <br />112.5(2). <br />Classification of the Sunday Mines Group as a DMO provides for preparation of an EPP for the <br />mines, which will describe how Denison will facilitate compliance! with the Colorado Mined <br />Lands Reclamation Act and associated rules in order to protect areas that have the potential to <br />be affected by designated chemicals or acid- or toxic-forming materials. Section 34-32.-112.5(2) <br />provides for exemption of a mine from DMO status if: <br />...an operator demonstrates to the board at the time of applyingifor a permit or at a <br />subsequent hearing that toxic or acid chemicals are not stored or used on-site and that <br />acid- or toxic-producing materials will not be used, stored, or disturbed in quantities • <br />sufficient to adversely affect any person, any property, or the environment... <br />Therefore, complying with the Colorado Mined Lands Reclamation Act and associated rules <br />requires an understanding of the potential for designated chemicals and acid- or toxic-forming <br />materials to be present at the mine site. <br />¦ Designated chemicals are defined at HRMMR 1.1(14) to include toxic or acidic chemicals <br />used within the permit area in extractive metallurgical processing. Designated chemicals are <br />not present at the Sunday Mines Group, because all extractive metallurgical processing is <br />completed at the Denison mill in Blanding, Utah. Therefore, designated chemicals do not <br />require additional evaluation. <br />¦ Acid-forming materials may be exposed during mining operations if sulfide minerals such <br />as pyrite are present in mine development rock or ore. The potential presence of acid- <br />forming materials at the Sunday Mines Group is examined in this investigation. <br />¦ Toxic-forming materials may also be exposed during mining operations. Mineral deposits <br />are naturally occurring enrichments of metals. Potentially toxic metals may also tie naturally <br />enriched in the rock in association with the ore minerals, and these materials may, be <br />exposed to the environment by the mining process. The potential presence of toxic-forming <br />materials in the mine rock and the potential for migration of these materials into the <br />environment is examined in this investigation. <br />cm 1-2 <br />T:164986-Denison MinesWask Order 3 - DMO Sampling and Analysis Plan\Task 3.12 - Soil, Ore, Rock Data Assessment ReporOSunday Rock Potportl8nal reporOReporffinal Sunday Mina Group Sell Ore Rock <br />Data Assessment Report_051509.d.