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A total of 95,000 gallons of water were treated and discharged in August 2009. This is <br />well below the permitted discharge volume of 930,000 gallons (based on the 0.03 mgd <br />permit limit over 31 days). <br />One exceedance occurred for selenium of the 30-day average effluent limitation. The <br />discharge events for the last seven months (January to July 2009) were in compliance for <br />all effluent limitations, including selenium. We do not know what caused the increase in <br />selenium levels in the mine water discharge in August. <br />Energy Fuels has tested several alternative treatment processes that could potentially treat <br />for selenium more effectively. A Zeolite system was tested on-site in August 2009 <br />following the discharge event and additional bench scale testing occurred in September <br />2009. Preliminary results of the September bench scale testing look positive. <br />Dissolved iron, sulfate, and nitrate levels are being monitored in the discharge samples at <br />the request of WQCD and the Division of Reclamation, Mining and Safety. Dissolved <br />iron in the discharge sample was less than 0.03 mg/L, sulfate was detected at 72 mg/L, <br />and nitrate was detected at 0.3 mg/L. <br />Please contact me at (303) 974-2151 if you need any additional information <br />Sincerely, <br />Z Rogers <br />Cc: <br />Scott Gerwe (BLM - Grand Junction Field Office) <br />Jeff Osborn, Frank Filas, Marty Olson (Energy Fuels) <br />Attachment: August 2009 DMR <br />Energy Fuels, Inc. 44 Union Blvd., Suite 600 <br />www.energyfuels.com Lakewood, Colorado 80228 <br />Phone: 303-974-2140 <br />Fax: 303-974-2141