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Gold Eagle Mining Inc. <br />Hawkeye Mine Permit Number M- 1978 -311 <br />stratigraphic section is included as Figure 2 and a geological map of the area as <br />Figure 3. <br />The Hawkeye Mine site is in a geologically stable area, with the nearest fault <br />zone of significance Tying over 2 1 /2 miles to the west along the northwestern <br />nose of the Dolores Anticline. The regularity of the northeasterly dendritic <br />drainage on the northeast side of the Dolores Anticline (northeast of the <br />Hawkeye Mine portal) is substantial evidence of the stability of the Hawkeye <br />Mine site. <br />Negative effects on ground water resources from mining operations at the <br />Hawkeye Mine are expected to be limited by the characteristics of the local and <br />regional hydrogeologic system. The primary source of ground water that could <br />be affected during mining is the Entrada Sandstone. The Entrada is separated <br />from the mining horizon by approximately 100 feet of mudstones and siltstone in <br />the Wanakah Formation and more than 100 feet of mudstones, siltstone and low <br />permeability sandstone of the lower portion of the Salt Wash Member of the <br />Morrison formation. Mineralized Salt Wash sandstone itself is relatively <br />impermeable, displaying no open pores during petrographic examination. <br />Water that may accumulate in the underground workings from direct infiltration, <br />or from excess water used in the mining operation should be small enough in <br />quantity that it will be absorbed into the broken and crushed rock that is the <br />direct result of the mining process. This absorption of excess water is desirable <br />because it aids in dust suppression and compaction during material handling <br />both inside the mine workings and on the surface when water rock is placed on <br />the waste pile or ore is stored and then shipped to the milling facility. Any larger <br />quantity of ground water that is encountered will be diverted into an excavated <br />underground sump and used in the underground mining process for dust <br />suppression and drill water. <br />9.0 Groundwater Quality Data <br />The potential for downward migration to the regional water table of any <br />contaminants from mining operations in sandstones of upper part of the Salt <br />Wash Member is limited by the Wanakah aquitard, which lies below the Salt <br />Wash Member of the Morrison Formation. Due to the ongoing prohibition of <br />activity on DOE lands monitoring wells cannot be installed at the Hawkeye Mine <br />location at this time. A groundwater monitoring plan will be designed in <br />accordance with DRMS and CDPHE rules following the lifting of activity <br />prohibitions by the DOE. <br />Exhibit U -4 <br />