2010-07-29_INSPECTION - M1978116

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PERMIT #: M-1978-116 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 SM-18 Mine is a 112d (1) permitted uranium located on the east canyon rim above the Uravan Mill Site on Colorado Highway 141 in Montrose County. Glen Williams, mine supervisor for Cotter Corporation, the permitee accompanied the inspector on site. Currently the SM-18 Mine is on standby. All permit boundary markers and signage is noted. Cotter does regular maintenance at the site. No mobile equipment is on site. The fuel tank is within acceptable secondary containment although the tank is empty. Stormwater controls, sedimentation and erosion issues are the primary focus at this time. The main mine area is on the west side of County Road U18. The portal is located just over the rim rock and faces to the west. By design, stormwater is directed down the portal access road to the portal itself. Stormwater is allowed to collect at the portal entrance and can be utilized for dust control within the mine. A rock armored spill-away allows excess water to escape if the catchment is over-run. The collection area for this structure is the small access road and precipitation that lands just above the portal itself. The structure and berms are noted as being maintained and functioning. Some minor riling on the road was observed but no major erosion or sedimentation is noted. The main support area for the portal has three structures. An office trailer, a compressor house, and a materials storage trailer are in relatively good repair. The small sedimentation pond located north of the office trailer is noted as not having any water in it with plenty of room for a precipitation event. Minor riling of the work area is noted. However, the entire area is on cap rock so no major erosion can occur. No trash or debris is noted in the area. On the east side of the county road is an ore storage area, waste dump and topsoil stockpile. The ore storage area is isolated by its own stormwater control berms. Recent precipitation events clearly show storm run-off is directed to the catchment basin for the area. No evidence of the system being compromised is noted. Storm run-on is kept out and directed down the county road drainage system. The waste pile area directs storm water run-off to a retention pond on the north side of the pile. Past inspections noted issues with the size of the pond and berms. Cotter has reworked a stormwater diversion ditch which short circuited into the pond and overran existing berms and dams. Along with the rework of the ditch the height of the berms were increased. Given the current rain events of the past few weeks it is noted that the system is working. No erosion or sedimentation issues are noted. The stormwater diversion ditch mentioned above had a few areas of concern in past inspections. Cotter reworked the ditch to include more rock armoring and check dams. As noted the area has had monsoonal rains recently. The structure is noted to be functioning well. The ditch passes between the topsoil stockpile and the waste piles. No erosion or sedimentation issues are noted. Vegetation is coming in along the ditch which will further enhance its stability. The topsoil area is vegetated by some volunteer vegetation. Four-winged saltbush, Indian rice grass, and wheat grasses are observed. Density of the vegetation is a little thin but coming along. Cotter may wish to augment the vegetation with some seeding to further protect the topsoil from wind and rain erosion. The old SM-18 portal and mine house are located a few miles northwest on the county road. The area is totally reclaimed with the portal sealed and backfilled and waste piles re-vegetated. No evidence of portal closure subsidence or reopening is noted. Vegetation is diverse but thin on density in some areas. No debris or trash is noted around the site. There is a mine building on site that is to remain. Page 2 of 9