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Mr. Tom Kaldenbach <br />March 8, 2013 <br />Page 3 <br />The initial pump down of the mine pool, from its current level to 150 feet below the <br />Steve level, in conjunction with incremental in -situ biologic treatment, will serve as <br />pilot -scale testing. <br />The RO Retentate ( "Retentate ") will be blended with barium chloride to cause <br />nucleation of gypsum and barium sulfate precipitation and blended with sugar syrups <br />to further increase the solution density and to support biologically induced formation <br />of metal sulfides that enhances the precipitation of dissolved uranium from solution. <br />The density of the resulting mine backfill slurry ("Slurry ") will be such that the <br />Slurry will rapidly sink to the bottom of the mine pool. If the Slurry does not sink, <br />there will be a conductivity increase in the in -situ monitoring troll suspended at depth <br />in the mine pool that will be detectible as the fluid begins to mix with the mine pool. <br />In the unlikely event there is a 20 percent increase in the concentration of solutes as <br />measured by the conductivity, the addition point of the Slurry will be lowered to a <br />greater depth in the mine pool, and the rate of addition of Slurry slowed by 25 <br />percent. <br />c. The expected secondary effects resulting from the creation of strongly reducing <br />conditions in the mine pool, <br />Creation of strongly reducing conditions in the mine pool will have a primary effect <br />of the formation of metal sulfide and uranyl (IV) dioxide (uraninite) minerals. The <br />metal sulfide (principally FeS) will form through the dissolution of iron oxide from <br />the wall rocks and the reaction of the dissolved iron with newly formed sulfide ion as <br />the result of the action of sulfate reducing biological processes throughout the mine <br />pool. For a short time, iron concentrations in the mine pool will be elevated as a <br />secondary effect of the in -situ treatment process. These concentrations of dissolved <br />iron must be treated through oxidation in a pre - filtration process to avoid plugging <br />the RO membranes with iron minerals. The pre- filtration process will produce an <br />iron oxide particulate that will be backwashed from the filters and these solids will be <br />mixed with the RO Slurry and disposed to the bottom of the mine pool through <br />density —based settling. <br />d. The expected effect of RO treatment residuals on the mine pool treatment process, <br />and <br />As discussed earlier, the RO treatment residuals will become a dense slurry which <br />will settle rapidly in the mine pool. Therefore there is no expected effect on the <br />upper mine pool. The addition of soluble carbon (sugar syrups) will help to densify <br />the slurry, and will convey the beneficial in -situ treatment effects to the deepest parts <br />of the mine pool. In this way the RO Slurry will be re- mineralized as stable metal <br />sulfides and reduced uranium minerals that are highly insoluble in water and will fall <br />out of solution and therefore will be beneficial to the mine pool treatment process. <br />e. The expected effect of organic carbon on the RO treatment process. <br />