2010-07-30_INSPECTION - M1977310

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PERMIT #: M-1977-310 INSPECTOR'S INITIALS: GRM INSPECTION DATE: July 28, 2010 OBSERVATIONS This inspection was conducted as part of the Colorado Division of Reclamation, Mining, and Safety normal monitoring program. The JD-6 Mine is a 110d permitted uranium located on the southern side of Paradox Valley in Montrose County. Glen Williams, mine supervisor for Cotter Corporation, the permitee accompanied the inspector on site. The JD-6 Mine is a DOE Lease Tract mine. The Duggan Adit is the main access for the JD-6 Mine but is part of the Mineral Joe Claims. As noted in the Mineral Joe inspection report, DRMS is encouraging Cotter to review the JD-6 and Mineral Joe relationship when formulating the required Environmental Protection Plan (EPP) prior to reactivation of the JD-6 Mine. It may be beneficial financially for Cotter to release much of the Mineral Joe and incorporate the rest into the JD-6 permit for one single DMO permit and EPP. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The sign is located at the entrance to the site off Monogram Mesa Road where it enters the permit boundary. Permit boundaries are marked by t-posts and geological features that are easily identifiable. The access road to the mine is graded and well maintained. No erosion or drainage issues are observed. The Duggan Adit portal is secure with steal locked gates. All buildings are secure and maintained. Vegetation has begun to take over at the portal mouth, mine office, compressor house and load out area. The inspector notes clover, some grasses, and annual weeds but no noxious or problematic species. Stormwater that collects in this area is directed towards a ditch that leads to the lower bench area. No erosion or sedimentation issues are noted at this time. The area has had heavy monsoonal rains in the area. This area is noted as having held up well from recent precipitation events. The lower bench is the load out dump area and ore stockpile zone. No ore is currently stockpiled on site. Drainage for this area is graded back to the highwall and does not connect to the rest of the general stormwater system. Large berms also prevent collected precipitation from leaving the site. Some minor collected pools were noted in the area but no major retention was observed. The dump and waste load out area are graded to push stormwater to a large retention pond. Cotter does regular maintenance on the pond to maintain storage capacity. All sediment materials cleaned out of the pond are being stockpiled for use as a form of topsoil for reclamation. That stockpile is noted as having clover and other. vegetation coming in to help prevent wind and rain erosion as required. All berms at the permit boundaries are noted as being in good repair. No impacts from recent stormwater events are noted at this time. The bond was last recalculated on this site in 2005. Per Rule 4.2.1(8) the Division holds a $100.00.00 reclamation bond for this site. The DOE holds the majority bond of $19,000.00 bond. DRMS will update the bond separately from this report. No issues or problems are noted at this time. Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. Inspection Contact Address Glen Williams Cotter Corporation P.O. Box 700 Nucla, CO 81424 Page 2 of 5