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ATTACHMENT TO ANNUAL REPORT <br />CARNATION MINE <br />PERMIT NO. M-1977-416 <br />OCTOBER 30, 2009 <br />In July 2007, the mine site was occupied, and site maintenance and clean-up were performed. <br />The Carnation portal has been opened for mine ventilation. As of the date of this report, <br />approximately 3,500 tons of ore were produced from the Carnation Mine and shipped to the <br />Denison's White Mesa Mill, located near Blanding, Utah. While a small amount of ore <br />production is possible in the upcoming year, it is unlikely to occur. Presently, the Carnation site <br />is only used for ventilation and emergency access, and no ore stockpiles are on site and no mine <br />development rock is being added to existing storage sites. <br />In March of 2008, the Division provided notification to Denison Mines that the Carnation Mine <br />is a Designated Mining Operation. In July of 2009, Denison submitted an Environmental <br />Protection Plan (EPP) for the Carnation Mine as part of the Sunday Mine Complex. In <br />September of 2009, Denison received comments on the EPP from the Division, and Denison is <br />currently working to address these comments and resubmit the EPP in December of 2009. <br />Groundwater sampling is ongoing in the West Sunday Mine as part of the DMO characterization <br />process, and quarterly results will be provided to the Division with the updated EPP. <br />Noxious weed control was completed using pesticide for halogen and knapweed. A Pesticide <br />Application Report was prepared for the Sunday Mines and was submitted to the BLM in early <br />October 2009, a copy is provided with this annual report. Weed Management in conjunction <br />with San Miguel County will continue in the fall of 2009. <br />All work at the Carnation Mine has been completed in conformance with approved Division <br />Mine Permits and Plans of Operation with the BLM. <br />No changes occurred in the Permit M-1977-416 area during the past year. Routine maintenance <br />was completed on the erosion control structures in August of this year. This routine maintenance