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<br />June 15, 2010 <br />Energey Fv&,r s <br />Randy Price <br />Mesa County Department of Planning and Economic Development <br />P.O. Box 20000 <br />Grand Junction, CO 81502-5022 <br />k? <br />JUN 2 12010 <br />GRAND JUNE ; I ik-, r ...? uFFICE <br />DI!/Ivi06' OF <br />RECLAP?00H i!A!NING & SAFETY <br />Wf) <br />Re: Whirlwind Mine 2009 Annual Sediment Pond Stability Report JUN 28 2010 <br />coo ? - <br />Dear Mr. Price, 04 M + Division ct r:ocipm +on, <br />Mining and Sgety <br />Energy Fuels Resources Corp. (Energy Fuels) is submitting this letter to update your <br />office on the monitoring of the sediment pond posts at the Whirlwind Mine near Gateway <br />Colorado. The Whirlwind Mine is permitted with Mesa County under Conditional Use <br />Permit No. 2007-299 CUP 1. <br />Comments were received by Mesa County (M1987r. Jim Komatinsky) on October 1, <br />2007 from the Colorado Geological Survey (CGS, Ms. Celia Greenman) regarding the <br />Whirlwind Mine Conditional Use Permit. The comments of primary concern from CGS <br />were in regards to stability of the slopes downgradient of the, then proposed, sediment <br />pond and treatment plant. Despite Energy Fuels opinion that there was no evidence of <br />slope instability in the mine facilities area, Energy Fuels agreed in subsequent <br />correspondence with CGS to install and monitor four stability monitoring posts <br />immediately downgradient of the sediment pond. <br />The stability monitoring posts were installed along the northern edge of the sediment <br />pond following its construction in late 2008. The posts consist of steel re-bar, installed <br />vertically into the ground at least 24" deep. The monitoring program consists of <br />checking the posts for verticality on a monthly basis and surveying the tops of the posts <br />annually. A survey was performed on November 7, 2008 to provide initial locations of <br />the tops of each post. Following installation, the posts were checked on a monthly basis <br />for plumb between January 2009 and April 2010, with the exception of March 2010. The <br />March 2010 check could not be conducted as the mine site remained inaccessible for the <br />entire month due to excessively deep snow. The posts were found to be plumb in every <br />check. A follow-up survey of the posts was conducted on April 21, 2010. The survey <br />results are included in the attached table. The four posts do show movement between <br />0.01 and 0.09 feet, consistent with survey error and freeze/thaw movement. The <br />movement of each post is in a different direction. Based on the small magnitude and <br />random direction of the movement, we feel there is not any measureable instability <br />associated with the sediment pond. <br />Energy Fuels. Inc. 44 union Blvd.. Suite 600 <br />,,N1vw.ener2yfiiels.com Lakewood, Colorado 80228 <br />Phone: 303-974-2140 <br />Fax: 303-974-2141