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PERMIT #: M- 1977 -285 <br />INSPECTOR'S INITIALS: RCO <br />INSPECTION DATE: July 31, 2013 <br />included in the amendment EPP) has not been installed at the site; the Division's approval of the EPP allows <br />the delay in constructing the liner, due to its potential for degradation over time; it is not beneficial for <br />ongoing degradation to occur during the time that no ore is being produced and stockpiled. <br />None of the upland ventilation shaft sites were inspected during this inspection. The GMG #13 decline area <br />was briefly observed. Its stormwater berms were intact, and the waste rock slopes were at approximately 2:1 <br />gradients. The decline was temporarily backfilled for security. <br />The operator wished to discuss the possible location for a water treatment plant to be constructed in the <br />future on the site. The location indicated for the plant is on the unaffected area below the Carnation Mine <br />waste rock dump, but partially within the Sunday Mine permitted area. The Division suggested that if the <br />optimal location is partially in two permitted areas (Carnation and Sunday), then the permit boundary line <br />should be adjusted such that the treatment plant is fully in only one permitted area. For this location, the best <br />revision to the boundary will be to reduce the Carnation permit area and correspondingly enlarge the Sunday <br />area, putting the plant entirely in the Sunday Mine permit. <br />The bond amount was recalculated when the EPP amendment was approved, and the bond is sufficient. <br />There were no problems noted at this time. The Division appreciates the time spent by the operator traveling <br />to and participating in the inspection. <br />For questions related to this report, please contact this inspector at the Division's Durango Field Office: <br />DRMS — Durango Field Office, 691 CR 233, Room A -2, Durango, CO 81301; Telephone 970 - 247 -5193 <br />Inspection Contact Address <br />Andrea Reither <br />Energy Fuels Resources (USA) Inc. <br />225 Union Blvd., Ste. 600 <br />Lakewood, CO 80228 <br />EC: James Blair, BLM, Tres Rios Office, Dolores <br />PHOTOGRAPHS <br />Facilities area (EFRI photo) <br />Page 3 of 4 <br />