2012-09-27_REVISION - P2009025

• Permit No: P2009025
• IBM Index Class Name: REVISION
• Doc Date: 9/27/2012
• Doc Name: Response to Adequacy Review
• From: Black Range Minerals
• To: DRMS
• Type & Sequence: MD2
• Email Name: TC1
• Email Name: TAK
• Media Type: D
• Archive: No

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September 26, 2012
State of Colorado
Division of Reclamation, Mining and Safety
Attn: Mr. Tim Cazier
1313 Sherman Street, Room 215
Denver, Colorado 80203
Dear Mr. Cazier,
Re: Hansen Uranium Project; DRMS NOI File No. P -2009 -025;
Modification 2 (MDO2) Response to Adequacy Review ✓
110 N. Rubey Drive Suite 201, Golden Colorado, 80403
PO Box 18041, Golden Colorado, 80402
ph [phone] fax [phone]
www.blackrangeminerals.com or infousa ablackrangeminerals.com
MINERAL S
DIVISION OF RECLAMATION
MINING AND SAFELY
On behalf of Black Range Minerals (BLR), I wish to clarify the modification of Prospecting Permit #
P- 2009 -025 requested in the Division of Reclamation, Mining and Safety's (DRMS) recent
adequacy review.
1) Pape 6, Item 4 — This modified procedure is proposed to be applied to all exploration
boreholes that are not groundwater monitoring wells. All groundwater monitoring wells are
proposed to be completed and abandoned in accordance with the State of Colorado Office
of the State Engineer, Water Well Construction Rules. In a letter from the DRMS to BLR,
dated September 4, 2009, there was expressed concern regarding drill holes being
backfilled the entire depth with cement or bentonite. BLR proposes to backfill exploration
boreholes with a neat cement grout from the bottom of the borehole to 10 -20 feet from the
surface and to backfill the remainder of the hole with coarse cement. The proposed
modification differs from and is superior to the previously approved backfill method which
cemented the bottom 70% of the borehole and plugged the remaining portion of the hole
with a bentonite gel.
2) Page 6, Item 5 — BLR is committed to the practice outlined by Stipulation No. 1 and it's
clarification in a letter from the DRMS dated September 14, 2012. BLR commits to
providing the appropriate lab analysis results to the DRMS following installation of new
boreholes.
3) Financial Warranty and number of holes — BLR confirms that 15 additional holes (six six -
inch diameter and nine nine -inch diameter) are planned as part of this modification, and
that any additional holes (up to a total of 50) will require submittal of additional financial
warranty. This proposed modification would bring the total warranted hole number up to 35.
BLR drilled 11 holes in 2011 implying there would be an additional 24 holes warranted.
4) Development Water — A typical purge volume for groundwater monitoring well development
is three to six times the well volume. The shallow (0 to 410 feet deep) groundwater
monitoring wells are anticipated to generate an average of approximately 100 gallons of
development water each. The deep (420 feet and deeper) groundwater monitoring wells
are anticipated to generate an average of approximately 1,200 gallons of development
water each. The total generated development water for 20 groundwater monitoring wells,
14 shallow and 6 deep, is approximately 10,000 gallons. BLR plans to contain the water
from each individual well for a period of time to allow for lab analyses. If the development