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September 23, 2011 C- 1981 - 014 /Southfield Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />R - Revegetation <br />Y - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />R - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />This was a complete inspection conducted by Janet Binns of CDRMS. George Patterson of Energy Fuels met the <br />inspector at the mine office in Florence to allow access to the mine records. Mr. Patterson did not accompany the <br />inspector to the mine site or to the load out. The mine is a reclaimed underground mine, that was last seeded in <br />2003. As such, no mine personnel remain at the site, but records are maintained in the nearest town, Florence. <br />Mr. Patterson is the contact for maintenance concerns, regular monitoring, and records. The weather was warm <br />and dry on the first day of Fall. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Mine records were complete and up to date. Records checklist can be found at the end of this report. The <br />Liability Insurance certification expires on October 1, 2011. A new valid policy needs to remain in place. The <br />operator needs to send proof of ongoing insurance prior to the expiration. (Rule 2.03.9(2)). <br />FISH and WILDLIFE — Rule 4.18: <br />A cow and calf elk were observed browsing on Rabbit brush near the main entry gate to the mine when the <br />inspector arrived at the mine site. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6, Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8, <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Pond 5 has had sediment pushed away from the western 30" dia. culvert outlet. The sediment was not <br />removed from the pond, but was pushed by a dozer to the west end of the pond. It appears that the operator <br />maintains adequate water storage volume in the pond. Pond 5 was dry at the time of the inspection. The western <br />culvert is capable of passing runoff flow through the culvert. The culvert continues to have sediment material at <br />the outlet opening. This material should flush out of the culvert during future storm events. If natural runoff <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: I <br />Page 2 of 10 <br />