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9/30/10 <br />Cotter Corporation (N.S.L.) <br />Summary of Site Operations and Conditions at Schwartzwalder Mine <br />July 2, 2010 through September 13, 2010 <br />Cotter Corporation (N.S.L.) ("Cotter") has installed a water treatment system at the <br />Schwartzwalder Mine site ("Site") to remove uranium from alluvial groundwater. The purpose <br />of the uranium removal is to achieve uranium concentrations at monitoring station BPL of 0.03 <br />mg/L or less. The following is a discussion of the steps taken including analysis of data that <br />shows progress towards achieving that goal. <br />Cotter began operating a 50-gallons per minute (gpm) treatment system to collect water from <br />Sump No. 1 on July 2, 2010. Shortly thereafter, Cotter diverted a surface water flow into Sump <br />No. 1. This 50-gpm system operated until July 30, 2010 and removed approximately 23 pounds <br />of uranium from alluvial groundwater. The pumping rate from Sump No. 1 averaged <br />approximately 24.5 gpm. <br />Alluvial water that had already passed Sump No. 1 prior to the 50-gpm treatment system startup <br />continued on its natural flow path unabated into the creek. For this reason and the reasons set <br />forth below, 0.03 mg/L uranium in Ralston Creek as measured at BPL was not achieved. <br />Cotter began procurement and construction of a 100-gpm (approximately 200-gpm maximum) <br />treatment system as soon as the 50-gpm system became operational on July 2, 2010. The 100- <br />gpm system began operating on July 30, 2010. On August 16, 2010, Sump No. 4 was added as <br />an alluvial water extraction point, and on August 19, 2010 Monitor Well 9 (MW 9) was added as <br />an extraction point. Total flow from these three extraction points averaged approximately 84 <br />gpm. Through September 13, 2010 the amount of uranium removed by the 50-gpm and 100- <br />gpm systems has been approximately 130 pounds of uranium as shown in Figure 1. <br />11 <br />140 <br />w <br />E 120 <br />Q <br />V loo <br />a so <br />g <br />v? 60 <br />a° 40 <br />Total Pounds Removed <br />160 <br />ing Sump 4 Begins <br />16, 2010) <br />20 <br />0 1-- <br />06/11/10 <br />07/01110 07/21/10 08110110 08130110 09/19/10 10/09/10 <br />Date <br />Figure 1