2012-08-08_REVISION - P2009025

• Permit No: P2009025
• IBM Index Class Name: REVISION
• Doc Date: 8/8/2012
• Doc Name: MD-02 ADEQUACY REVIEW
• From: DRMS
• To: BLACK RANGE MINERALS
• Type & Sequence: MD2
• Email Name: TC1
• Email Name: TAK
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
August 8, 2012
Mr. Patrick C. Siglin
Black Range Minerals
110 N. Rubey Drive, Suite 201
Golden, CO 80403
Re: Hansen Uranium Project; DRMS NOI File No. P- 2009 -025;
Modification 2 (MD02) Adequacy Review
Dear Mr. Siglin:
STATE OF COLORADO
COLORADO
D I V I S I O N O F
RECLAMATION
MINING
— &—
SAFETY
John W. Hickenlooper
Governor
Mike King
Executive Director
Loretta Pineda
Director
On July 20, 2012, the Division of Reclamation, Mining and Safety (Division) received the Notice of Intent
(NOI) to Conduct Prospecting Modification Application for the Hansen Uranium Project, File No. P -2009-
025. Our review indicates the NOI modification application contains deficiencies as defined by Rule 5.1.3 of
the Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal,
and Designated Mining Operations. The Division requires the deficiencies described below before we can
approve the NOI modification application.
1) Page 6, Item 4 — The drill hole abandonment description differs from that proposed and agreed to in
the original application. Please clarify if this procedure is only to be applied to abandoned
monitoring wells or is intended for all new holes. Please provide some rationale for the different
abandonment procedure.
2) Page 6, Item 5 — The Division required Black Range to commit to sampling mud pit contents and
providing the Division a complete suite analysis for metals along with an analysis for uranium,
radium 226 and radium 228 for all of the mud pits associated with this NOI. Please commit to
continuing this practice and providing the analysis results to the Division.
The following stipulation applies to the above testing requirement.
Stipulation No.1
The contents and cover of the backfilled mud pits will not exceed the following limits:
1. The concentration of radium 226 or radium 228 may not exceed the background level by
more than 5 picocuries per gram (pCi /g).
2. The concentration of natural uranium with no radioactive decay products present may
not exceed the background level by more than 30 pCi /g.
3. Background levels shall be determined by sampling each proposed mud pit location
prior to any disturbance associated with the proposed drilling activity.
3) Financial Warranty and number of holes — Item 6 on page 4 indicates 50 holes are to be drilled. The
current financial warranty is for 20 six -inch diameter holes. Your cover letter and borehole sealing
work table indicate only 15 additional holes are to be drilled as part of this modification for a total of
35 holes. Please confirm that only 15 more holes (six six -inch diameter and nine nine -inch diameter)
Office of Office of
Mined Land Reclamation
Denver • Grand Junction • Durango Active and Inactive Mines