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PERMIT #: M-1977-451 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: July 22, 2010 <br />OBSERVATIONS <br />OBSERVATIONS <br />This inspection was performed as part of the normal Division of Reclamation, Mining, and Safety (DRMS) monitoring <br />program for permitted mines. The Ike No. 1 Mine is a DRMS 112d(1) permitted uranium mine on Department of Energy <br />(DOE) Lease Tracts. Cotter Corporation is the permit holder. Glen Williams, mine supervisor for Cotter accompanied the <br />inspector on site. <br />The Ike Mine Permit has two disturbances. The Ike-Dawson incline has been fully reclaimed since 2000. The second <br />disturbance is the SR-11 Mine which was started in 2005 or 2006 but deactivated due to economic conditions. The site <br />has intermittent status. If the SR-11 were to be reactiviated a designated mining operation (DMO) amendement would <br />be required. The last inspection of this site was in Novemeber of 2006. <br />Signage and permit boundary markers are not present as the reclaimed site which is not an issue. Proper signage and <br />permit boundary markers are noted at the SR-11. <br />The portal for the Dawson incline was backfilled as part of the reclamation. Cotter recently did some touch up work for <br />DOE at the site that included filling in a subsidence of one of the access portals. The reclamation of waste slopes was <br />done using a pocking technique. Pocking is capturing rainfall and sedimentation as designed. No major storm water <br />structures were built on site as part of the mining or reclamation plans. <br />Four winged saltbush, rabbit brush and grasses are very well established on the reclaimed slopes. Indian rice grass and <br />crested wheatgrass are the primary grasses. Some other native volunteer forbes were observed as well. Diversity is <br />very good. Density is equal to the surrounding area. <br />The SR-11 Mine as noted was opened up in late 2005 or early 2006. The portal is secured by a steel gate. The mine <br />office is the only other structure on site presently. It is an old mobile home that Cotter is maintaining as a n office and <br />mine dry. <br />An area of approximately 4 acres was stripped of topsoil for the waste rock dump. The area has been graded to direct <br />storm flow into a sedimentation pond in the south eastern portion of the disturbance area. Recent heavy rains show the <br />design is working as planned. Erosion is minimal at this time but could become an issue in time. <br />The topsoil from the stripping operation has been piled up on the eastern side of the disturbance area. It is noted that <br />there is limited quantities of topsoil on site. Therefore it is important to protect the limited resource from erosion. It is <br />observed that only annual weeds and some volunteer vegetation has been established on the topsoil pile. Cotter needs <br />to seed the topsoil pile this fall to protect it from wind and precipitation erosion as required by Rule 3.1.9(1). DRMS is <br />noting this as an issue of concern that will be changed to a formal problem if not corrected by the correction date as <br />requested at the end of this report. <br />The inspector notes the site has been stripped of all beneficial vegetation. While this was fine for original plans it is not <br />acceptable given the length of inactivity. Cotter needs to review the immediate plans for the site. If the site will remain <br />inactive for more than the coming year the entire disturbance area should be seeded to prevent erosion and <br />sedimentation. DRMS is noting this as an issue of concern that will be changed to a formal problem if not corrected by <br />the correction date as requested at the end of this report. <br />Page 2 of 10