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2 <br />permeability tests in the mine stopes; and measuring ground water <br />levels in existing exploratory holes on the project site. <br />(3) The geology, hydrology and seismicity at the site and in the <br />general region were evaluated by reviewing the pertinent <br />literature. A field reconnaissance was made at the site, in the <br />mine, and areas adjacent to the lease. Aerial photographs and <br />geologic data on the mine collected by Gates & Fox were also used <br />in evaluating the local geology. <br />(4) A laboratory testing program was conducted to provide design data <br />regarding classification, shear strength, compressibility, <br />permeability and compaction characteristics of the on -site soils <br />and waste rock. <br />(5) An analysis of the field and laboratory test results and the <br />existing data was performed to select design parameters. <br />(6) This report has been prepared which summarizes the data obtained <br />and presents our conclusions and recommendations on the items <br />discussed. <br />PROPOSED CONSTRUCTION <br />Gates & Fox Company is proposing to construct and operate a <br />facility to vat leach low -grade uranium ore at the JD-5 uranium lease <br />they have operated for the past 2 1/2 years. The mine is located in <br />Montrose County, Colorado, near Naturita. <br />The JD-5 property is currently leased from the Department of <br />Energy and is a portion of the land formerly withdrawn from <br />development by the Atomic Energy Commission. The JD-5 lease includes <br />