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JAN 0 S 2312 v <br />DURANQO FIELD OFFICE <br />DIVISION OF AND RECLAMATION, <br />b <br />Solid Minerals Inspection Report <br />0. Bureau of Land Management <br />Tres Rios Field Office ( v1 , 4D,Arli hn i N `— <br />29211 Hwy 184 ✓ YYl - t'5'} Z <br />Dolores, CO 81323 <br />Type of Operation <br />3809 - Plan of Operations <br />(Uranium /vanadium) <br />Project Name <br />Sunday - Topaz Mine Complex <br />Serial Number <br />COC- 53227, COC -52049 <br />Company /Org. <br />Denison Mines <br />Inspection Date <br />11/22/2011 <br />Others Present <br />None <br />Inspection Time <br />1:30 PM <br />Inspected By <br />James Blair <br />Report Date <br />11/29/2011 <br />Legal <br />T44N, R18W, Sec. 15 <br />Introduction <br />On 11/22/2011 I performed an impromptu inspection on the Denison Sunday and Topaz mine complex. <br />Overall things appeared to be in order. An outbuilding had been torn down on the site, and some debris <br />from the building appeared to have been buried in the waste dump at the east end of the Sunday mine <br />dump. It appeared that water run -on capture ditches had been recently mucked out. There was some <br />erosion at the topaz, where a drainage that flows around the base of the dump has jumped its channel and <br />is eroding into the ground below the dump, but not into the dump itself RECEIVED <br />JAN 12 /101Z <br />Description <br />Division of RcclamaUon. <br />Mining & Safety <br />West Sunday: The road to the mine was in good shape and there was no substantial erosion on the dump <br />that I saw. The gate was secure and there was no sign of recent disturbance. <br />Topaz: There were some ruts on the access road. A fissure that had appeared on the dump a year earlier <br />was flagged. I saw no signs of movement or enlargement, and suspect it may be from infiltration of fines <br />more than mass movement, as there was no continuing vertical or horizontal offset. There was some <br />erosion where the drainage which flows past the base of the dump on the west side had jumped its channel <br />below the dump and is in the beginning stages of carving a new drainage. This may partially be a natural <br />process, as there is somewhat of an alluvial fan at that location, however measures should probably be <br />taken to put the drainage back in its original channel so that it does not damage the road. <br />St. Jude: The runoff control pond next to the access road will need to be mucked out before spring to <br />ensure adequate freeboard. Some halogeton was present. Culverts on the access may need to be bigger <br />Carnation: Looks ok. The weeds weren't too bad. <br />Sunday Mine: Several lengths of culvert, as seen from the Gyp Valley Road, have come loose and need to <br />be stacked and secured as a good housekeeping issue. A cat 315 excavator was on site. It was used to <br />tear down an out building. Most of the debris was in a dumpster; however something was buried in the <br />dump approximately 100 yards from the demolition site. The hole was a few cubic yards volume. Some <br />1 of 33 <br />