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2.0 MINE HISTORY <br />Energy Fuels Resources Corporation (Energy Fuels) proposes to reopen two adjacent <br />underground uranium/vanadium mines as a combined operation called the Whirlwind <br />Mine. The two mines, the Packrat Mine and Urantah Decline, were previously permitted <br />with the State of Colorado and the Bureau of Land Management (BLM). The Packrat <br />Mine operated from the 1950s up to 1990 while the Urantah Decline was started in 1979, <br />but ceased production in 1981 shortly after accessing the ore body. Both mines shut down <br />due to depressed uranium prices and were later reclaimed in 2002 by their respective <br />operators, Umetco Minerals Corporation (Umetco) and Cotter Corporation (Cotter). The <br />reclamation was successful and the reclamation bonds on these properties were released in <br />2005. <br />Little Maverick Mining Company (Little Maverick) reopened the Urantah Decline in 2005 <br />under a prospect permit with the BLM and Colorado DRMS. Energy Fuels subsequently <br />acquired these permits and established a long-term lease agreement with Little Maverick. <br />In addition, Energy Fuels obtained additional permits that allowed the company to reopen <br />the Packrat portal and pump, treat, and discharge groundwater from the Whirlwind portal <br />(formerly the Urantah Decline portal). The prospect permits allowed for the mining of <br />1,000 tons of ore for assay and testing purposes; however, no ore was mined under these <br />permits. Figure 3 shows the extent of the existing underground workings at the <br />Whirlwind Mine. <br />Energy Fuels obtained permits for full-scale mine operations from Mesa County in <br />December 2007, DRMS in February 2008, and the BLM in September 2008. During this <br />period, exploration activities were conducted, the mine was dewatered, and the mine <br />workings were cleaned up and rehabilitated to meet current MSHA standards. Mine <br />rehabilitation was completed in November 2008; however, Energy Fuels decided not to go <br />into production because a suitable toll-milling agreement could not be reached with the <br />White Mesa Mill in Blanding, Utah. The Whirlwind Mine has been on standby since <br />November 2008 and will not begin production until a milling contract can be reached with <br />the White Mesa Mill or until the proposed Pifion Ridge Mill near Naturita, Colorado <br />comes on-line. <br />Although no ore has been mined since the Whirlwind was reopened, Energy Fuels <br />installed its Phase I ventilation system and was able to collect air flow and radon-222 <br />emission data in anticipation of applying for this Construction Application. The collected <br />3