2009-05-19_REVISION - M1977416 (37)

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• I apse 4 - :)i holeno avc water lev north eia east ` elev Static Water Level Date (feet) (elevation) Date (feet) (elevation) SC-0109 1529174.11 2047934.83 5736.00 3/11/2009 242.00 5494.00 5494.00 SC-0209 1529093.46 2047927.77 5741.52 3/11/2009 264.00 5472.00 5472.00 SC-0309 1529047.04 2047892.80 5744.99 3/11/2009 248.00 5488.00 5488.00 SC-0409 1529048.46 2047722.90 5747.73 3/12/2009 373.00 5363.00 5363.00 SC-0509 1528781.97 2047585.14 5790.81 3/12/2009 388.00 5348.00 5348.00 SC-0609 1533951.39 2039012.37 5778.08 3/13/2009 377.00 5359.00 5359.00 SC-0709 1528786.48 2047575.08 5791.10 4/7/2009 dry 4/14/2009 334 5402.00 SC-0809 1529048.13 2047804.92 5744.05 4/8/2009 273.00 5463.00 4/14/2009 257 5479.00 SC-0909 1533948.34 2039042.81 5778.79 4/8/2009 383.00 5353.00 4/14/2009 391 5345.00 S-4 1526273.40 2045966.71 6028.00 3/1/2009 5394.00 S 8 1525581.00 2045936.00 6000.00 3/1/2009 5413.00 DLS-1 1526670.00 2046572.00 6066.00 2/24/2009 5389.70 6LS-3 1527791.00 2044022.00 6082.00 2/14/2009 5389.70 DLS-4 1528360.00 2042255.00 6047.00 12/26/2006 5438.10 6LS-5 1528355.00 2042122.00 6035.00 2/24/2009 5424.20 -RS-6 1529671.98 2039657.00 6169.00 2/24/2009 5574.92 6LS-7 1529956.00 2040183.00 6229.00 4/14/2009 5644.95 • Measurements of the groundwater level in the Topaz Mine on 04/08/09 shows the water level currently at an elevation of 5,574 feet which is the same measured in February 2009, suggesting water level has reached static equilibrium. However, the elevation of water is roughly 100 feet higher in section then the average static water level (elev. 5,398.43 feet) measured in other parts of the Sunday Mine Complex. Note: Current Topaz Mine water level elevations shown on Figure 1 and reported here are based on Union Carbide 1980-1981 Sunday Mine survey station data, this information is currently being resurveyed and • updated to NAD83 coordinates and should be used with caution. However, current Denison Mine's personnel are confident in elevations and do not foresee any major changes to occur as a result of the new survey data. Currently reported elevations are probably very close to correct in that mine engineers have performed survey elevations confirmations in the past and did find some discrepancies early on and corrected them. None were more than three feet. The DLS-7 site was a temporary sump which was used to pump the water into the 3000 area to dewater the 4000 area as they were mining there. This gave mining personnel the water they needed for drilling. That sump area did not make water when they were mining there. It has since been dewatered. In other words there is no natural ground water at the DLS-7 site. The static water level in SC-0109, SC-0209, SC-0309 and SC-0809 is contained within the low basal units of the uranium mineralized upper rim of the Salt Wash. The sand package ranges in thickness from 90-120 feet and occurs roughly between 50-90 feet above the interpreted underlying Summerville contact. SC-0809 (hole located between SC-0409 and SC-0309 near the Carnation portal) was TD at 285 feet at what was suspected to be the Salt Wash/Summerville contact. However upon further review, the hole may have been TD'd in rust colored clayey sandstone common with the Salt Wash in the area. SC-0809 hole remains open as of this writing for future water measurements. • Static water level measured in SC-0409 and SC-0509 is interpreted as being within the Entrada formation. There was no evidence of water observed in SC-0709 during drilling and the hole was TD'd at 335 feet at the projected Salt Wash/Summerville contact. Secondary logging of the hole on 04/14/09 did encounter water at 337 feet which is interpreted as existing in the near surface sands of the Entrada Sandstone just below the Summerville contact (similar to SC-0409). This information is evidence that the water occurring in SC-0109, SC-0209, SC-0309 and SC-0809 may be a fault blocked controlled perched water horizon within the Salt Wash as shown on Figure 5 which is a generalized groundwater level contour map used only for illustration purposes and does not serve as • a certified modeled surface. SC-0709 remains open as of this writing for future water measurements. OENISONOI, MINES 6