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9 Section 1 <br />Introduction <br />1.1 Purpose of Investigation <br />This environmental geochemistry investigation of rock and soil material at the Van 4 <br />Mine was conducted to provide information regarding potential Designated Mining <br />Operation (DMO) status to support preparation of an Environmental Protection Plan <br />(EPP) for the mine. The Van 4 Mine is operated by Denison Mines (USA) Corp. <br />(Denison) and is located in Montrose County, Colorado. <br />The mine is not currently in production, but the mine is fully permitted and Denison <br />plans to commence production at the mine in the future. The mine is located within <br />the Uravan District, one of the major uranium-producing mineral districts in the <br />United States. Once production resumes, the ore will be transported to a mill located <br />approximately 140 miles to the west near Blanding, Utah for mineral processing. <br />Mines in the area have been active on an intermittent basis since the 1950's. A map <br />showing the location of the mine is included as Figure 1-1. <br />This work was initiated in response to notice by the Colorado Division of <br />Reclamation, Mining and Safety (DRMS) that they were re-classifying mines the Van 4 <br />Mine as a DMO, as provided for by the Mineral Rules and Regulations of the <br />Colorado Mined Land Reclamation Board for Hard Rock, Metal and Designated <br />Mining Operations (HRMMR). This investigation is consistent with the Phase 1 data <br />• collection activities described in Denison 's memorandum to DRMS (Denison 2008) <br />and DRMS' May 9, 2008 response letter (DRMS 2008) to Denison approving (with <br />comment) the proposed program for environmental analysis at the Van 4 Mine. To <br />support data collection activities, a work plan was developed for the evaluation of <br />metals concentrations and physical properties of mine development rock and soils at <br />the Van 4 Mine (CDM 2008). <br />During development of the sampling work plan, the Colorado Mined Land <br />Reclamation Act (Colorado Revised Statutes (CRS) Title 34, Article 32 [CRS §34-32]) <br />was amended via Colorado House Bill (HB) 1161 as signed into law by the Governor <br />on May 20, 2008. The revised statute changed the definition of a DMO to include all <br />uranium mine operations including conventional underground uranium mines such <br />as the Van 4 Mine. Revised regulations have not yet been adopted by the Colorado <br />Mined Land Reclamation Board to address CRS §34-32-103. This investigation is <br />consistent with this change in the DMO definition and associated information <br />provided by DRMS to Denison in a June 6, 2008 letter (DRMS 2008b). <br />1.2 Regulatory Background <br />As defined in the CRS §§ 34-32-110, the Van 4 Mine is permitted with a 110(2) permit <br />(permit number M-1997-032). Colorado House Bill 1161 redefined a DMO to include <br />mining operations at which: <br />0 cm <br />1-1 <br />7164988-Denison Mims\Te