2010-07-30_INSPECTION - M1977284

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PERMIT #: M-1977-284 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 Mineral Joe Claims 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 Mineral Joe Claims is a fully reclaimed mine site on BLM lands that is linked to the JD-6 Mine which is a DOE Lease Tract. Past disturbances on the Mineral Joe included vent and access shafts and a camp area. The primary purpose for the permitted site now is the Duggan Adit which is the main access to the JD-6 Mine DOE Lease Tracts and an emergency secondary escape way. 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 emergency escape way portal is not in great shape but secure. Cotter has re-enforced the opening with additional timbers but back laggings are bowed or broken. The steel gate just past the timbering appears to be intact and locked. Vegetation diversity and density are fair on the waste piles. Sage, rabbit brush, Indian ricegrass, slender wheatgrass are noted. Many shrubs and grasses are two to three feet in height. On the lower bench vegetation has not taken hold. Mr. Williams noted the area as well. The inspector is recommending Cotter scar fire and reseed this area when it is seeding other mine areas this fall. The inspector did not visit the camp and shaft areas as recent rains made the access road questionable. No erosion, sedimentation, or stormwater issues were observed. No noxious or problematic weeds were observed on site. However, some knapweed was observed near the access road to the emergency escape way. Cotter should keep an eye this area to ensure an infestation on the permitted area does not take hold and hinder-reclamation. No debris or trash is noted around the site. The bond was recalculated on this site in 1999. The Division holds a $28,331.00 reclamation bond for this site. While the bond appears to be ample the Division will update the reclamation liability taking into account the reclamation done and what remains separately. 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 4