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HomeMy WebLinkAboutDRC-2011-006289 - 0901a0688023a070DENISO MINES Denison Mines (USA) Corp. 105017th Street, Suite 950 Denver, CO 60265 USA Tel: 303 628-7798 Fax:303 389-4125 www.denteonm I nes.com May 31, 2011 Sent VIA Federal Express Mr. Rusty Lundberg Co-Executive Secretary Utah Water Quality Board Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144810 Salt Lake City, UT 84114-4820 Re: Transmittal of DMT Performance Standards Monitoring Report and CeU 4A and CeU 4B BAT Performance Standards Monitoring Report for the 1st Quarter of 2011 Dear Mr. Lundberg: Enclosed please fmd two copies of the DMT Performance Standards Monitoring Report and Cell 4A and CeU 4B BAT Performance Standards Monitoring Report for the 1st Quarter of 2011, as required under Parts I.F.2 and I.F.3 of the White Mesa MiU's State of Utah Groundwater Discharge Permit No. UGW370004. Also enclosed are two CDs, each with an electronic word- searchable copy of the enclosed Report. If you have any questions regarding this Report, please contact the undersigned at (303) 389- 4132 or Mr. David Turk at (435) 678-2221. Yours very truly, DENISON MINES (USA) CORP. Jo Ann Tischler Director, Compliance and Permitting cc David C. Frydenlund Ron F, Hochstein Harold R. Roberts David E.Turk Kathy Weinel OENISOJ)~~ MINES May 31,2011 Sent VIA Federal Express Mr. Rusty Lundberg Co-Executive Secretary Utah Water Quality Board Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144810 Salt Lake City, UT 84114-4820 Denison Mines (USA) Corp. 1050 17th Street, Suite 950 Denver, CO 80265 USA Tel: 303628-7798 Fax: 3033894125 www.denisonmines.com Re: Transmittal of DMT Performance Standards Monitoring Report and Cell 4A and Cell4B BAT Performance Standards Monitoring Report for the 1st Quarter of2011 Dear Mr. Lundberg: Enclosed please find two copies of the DMT Performance Standards Monitoring Report and Cell 4A and Cell 4B BAT Performance Standards Monitoring Report for the 1 st Quarter of 2011, as required under Parts I.F.2 and I.F.3 of the White Mesa Mill's State of Utah Groundwater Discharge Permit No. UGW370004. Also enclosed are two CDs, each with an electronic word- searchable copy of the enclosed Report. If you have any questions regarding this Report, please contact the undersigned at (303) 389- 4132 or Mr. David Turk at (435) 678-2221. Yours very truly, ~ Cs (USAl CORPo JoAnn Tischler Director, Compliance and Permitting cc David C. Frydenlund Ron F. Hochstein Harold R. Roberts David E. Turk Kathy Weinel WHITE MESA URANIDM MILL DMT PERFORMANCE STANDARDS MONITORING REPORT AND CELL 4A and CELL 4B BAT PERFORMANCE STANDARDS MONITORING REPORT lst Quarter January through March 2011 State of Utah Groundwater Discharge Pennit No. UGW370004 Prepared By: Denison Mines (USA) Corp. 1050 17th Street, Suite 950 Denver, CO. 80265 May 31,2011 TABLE OF CONTENTS 1.0 INTRODUCTION .............................................................................................................. 1 2.0 MEASUREMENTS TAKEN AND MONITORING PERFORMED DURING THE QUARTER ......................................................................................................................... 1 3.0 WEEKLY TAILINGS WASTEWATER POOL ELEVATION MONITORING ..... 2 4.0 MONTHLY SLIMES DRAIN WATER LEVEL MONITORING .............................. 4 4.1 GENERAL .......................................................................................................................... 4 4.2 RESULTS FOR THE QUARTER ............................................................................................. 5 4.3 QUALITY ASSURANCE EVALUATION AND DATA VALIDATION .......................................... 6 4.4 GRAPHIC COMPARISON TO PREVIOUS YEAR ..................................................................... 6 5.0 WEEKLY WASTEWATER LEVEL MONITORING: ROBERTS POND ............... 6 6.0 WEEKLY FEEDSTOCK STORAGE AREA INSPECTIONS AND INSPECTIONS OF FEEDSTOCK MATERIAL STORED OUTSIDE THE FEEDSTOCK STO RAGE AREA ............................................................................................................. 6 7.0 TAILINGS CELLS AND POND LINER SYSTEM REPAIRS ................................... 7 8.0 DECONTAMINATION PADS ........................................................................................ 8 8.1 SUMMARY OF WEEKLY INSPECTIONS ................................................................................ 8 8.2 ANNUAL INSPECTION OF EXISTING DECONTAMINATION PAD ........................................... 9 8.3 ANNUAL INSPECTION OF NEW DECONTAMINATION PAD ................................................... 9 9.0 CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS REPORT FOR THE QUARTER ............................................................................................................. 10 9.1 LDS MONITORING .......................................................................................................... 10 9.1.1 Operational Status ofLDS Pumping and Monitoring Equipment .............................. 10 9.1.2 Measurement of Weekly Fluid Head at the Lowest Point in the Secondary Membrane 10 9.1.3 Measurement of the Volume of Fluids Pumped from the LDS ................................... 11 9.2 MEASUREMENT OF WEEKLY WASTEWATER FLUIDS IN CELL 4A .................................... 11 9.3 SLIMES DRAIN RECOVERY HEAD MONITORING .............................................................. 11 10.0 ANNUAL SLIMES DRAIN RECOVERY HEAD REPORT FOR THE CALENDAR YEAR 2011 ............................................................................................... 12 11.0 SIGNATURE AND CERTIFICATION ....................................................................... 13 N:\Required Reports\DMT Reports\2011 DM1\Q12011 DMT Report\Q12011 DMT Report.docx LIST OF TABLES Table 1-Summary of Waste Water Pool Elevations Table 2 -New Decontamination Pad Inspection Portal Level for the First Quarter 2011 ATTACHMENTS A Tailings Cell and Roberts Pond Wastewater Elevations B Notices Pursuant to Part I.G.3 of the Pennit C Monthly Cell 2 Slimes Drain Monitoring Data D Graph ofCe112 Slimes Drain Water Levels Over Time E Cell Liner Repair Reports and Notices F Cell4A and Cell4B Leak Detection System Data for the Quarter and BAt O&M Plan Table 1A G Annual Inspection Forms for Existing and New Decontamination Pads (part I.F.12) ii WHITE MESA URANIUM MILL DMT PERFORMANCE STANDARDS MONITORING REPORT AND CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS MONITORING REPORTS FOR THE lst QUARTER OF 2011 1.0 INTRODUCTION This is the routine Discharge Minimization Technology ("DMT") Perfonnance Standards Monitoring Report for the 1st quarter of2011 (the "Quarter") prepared by Denison Mines (USA) Corp. ("Denison"), as required under Part I.F.2 of the White Mesa Mill's (the "Mill's") State of Utah Groundwater Discharge Pennit No. UGW370004 (the "Pennit"), and the Routine Cell 4A and Ce1l4B Best Available Technology ("BAT") Perfonnance Standards Monitoring Reports for the Quarter, as required under Part I.F.3 ofthe Pennit. 2.0 MEASUREMENTS TAKEN AND MONITORING PERFORMED DURING THE QUARTER During the Quarter, the following DMT monitoring was perfonned or addressed, as required under Part I.D.3, I.E.7, and I.F.11 of the Pennit: • Weekly tailings wastewater pool elevations for tailings Cells 1 and 3 (Part I.E.7(a)); • Monthly slimes drain water levels in Cell 2 (Part I.D.3(b)(1) and (2»; • Annual Slimes Drain Compliance (Part I.D.3 (b) and I.F.11); • Weekly wastewater level measurements in Roberts Pond (part I.D.3(e) and Part I.E.7(a)); • Weekly feedstock storage area inspections and inspections of feedstock materials stored outside of the feedstock storage area (Part I.D.3(f) and Parts I.E.7(d) and (e); • Any tailings cell and pond liner system repairs (Part I.E.7 (f) and Part I.E.(8)(c)); • Weekly New Decontamination Pad Inspection (Part I.E.7 (g» and • Annual Decontamination Pad Concrete Inspection (Part I.F.11) (not required this reporting period) Also during the Quarter, the following Cell 4A and 4B BAT perfonnance standards monitoring was perfonned, or addressed, as applicable and as required by Parts I.E.8 and I.E.12 of the Pennit: • Leak detection system ("LDS") monitoring for Cell 4A (Part I.E.8.(a)) and Cell 4B (Part I.E.12 (a»); and • Weekly tailings wastewater pool elevations for tailings Cell 4A (Part I.E.8 (a)) and Ce1l4B (Part I.E.12 (a)). 1 N;\Required RepOlts\DMT R~porls\20 11 DMT\Q 1 2011 DMT Repolt\Q 1 2011 DMT RepOlt.docx 3.0 WEEKL Y TAILINGS WASTEWATER POOL ELEVATION MONITORING Mill personnel monitored and recorded weekly the elevation of wastewater in Tailings Cells 1,3, and 4A, during the first quarter 2011 as noted below, to ensure compliance with the maximum wastewater elevation criteria mandated by Condition 10.3 of the Mill's State of Utah Radioactive Materials License No. UT 1900479 (the "License"). The requirements to monitor and record the wastewater pool elevations for Cell 3 and Cell 4A were removed by the Executive Secretary of the State of Utah Radiation Control Board (the "Executive Secretary") during the first quarter 2011 as detailed below. All of the wastewater measurements reported herein were made from an elevation survey. The results of such monitoring, reported as feet above mean sea level (finsl), are included in Attachment A. It is important to note that wastewater pool elevation surveys were not conducted for Cell 4B because the fluid levels were too low to measure, that is, below the level at which the survey can be conducted from the bank of Cell 4B. However, during the quarter the Cell 4B fluid did not exceed the 5581.10 finsl elevation based on a survey taken May 31,2011. Condition 10.3 of the License provides that the freeboard limit for Cell 1 shall be set in accordance with procedures that have been approved by the U.S. Nuclear Regulatory Commission ("NRC"). Under those procedures the freeboard limit for Cell 1 is set as per the January 10, 1990 Drainage Report for CellI at a liquid maximum elevation of5,615.4 fins!' Condition 10.3 of the License also provides that the freeboard limit for Cells 3, 4A and 4B shall be recalculated annually in accordance with the procedures approved by the Executive Secretary. The current freeboard limit for Cell 3 was previously calculated under this procedure at 5,601.6 fins!' However, in a letter from the Executive Secretary dated November 20, 2008, an interim variance and limit was established at 5,602.5 finsl for Cell 3. Cell 3 is nearly filled and pre-closure activities are underway. As discussed in the DMT Performance Standards Monitoring Report and Cell 4A BAT Performance Standards Monitoring Report for the 4th Quarter of 2010, the process of filling Cell 3 with solids and the reduction of the liquid "pool" area to a number of small "puddles" has rendered the freeboard limit meaningless. The solids filling activities in the third quarter of 2010 resulted in two apparent exceedances of the freeboard limit, which were the subject of a Notice to the Executive Secretary under Part I.G.3 of the Permit and Utah Administrative Code ("UAC") R317-6-6.16(C), dated August 4, 2010. The notice of August 4,2010 explained that it is no longer possible to manage the Cell 3 freeboard to achieve the calculated freeboard limit during the final stages of filling Cell 3 with solids and closing Cell 3. The continuing solids filling process during the first quarter of 2011 resulted in all but three of the weekly fluid elevation measurements remaining above the freeboard limit of 5,602.50 finsl as anticipated in the notice of August 4, 2010. However, as discussed below, at no time has the fluid level exceeded the maximum wastewater elevation of 5605.5 finsl as required under Part I.D.2 of the Permit. A letter from the Executive Secretary dated January 27, 2011 which approved the use of Cell 4B and a subsequent letter dated March 14, 2011, stated that authorization of the use of Cell 4B and approval of the DMT and Cell 4A Operations and Maintenance ("O&M") Plans effectively eliminated the former 2 N:\Required Reports\DMT RepoJts\2011 DMT\Ql 2011 DMT RepOlt\Ql 2011 DMT RepoJt.docx freeboard elevation requirements for tailings Cell 3. The approvals of the DMT and Cell 4A O&M Plans also resolved previous freeboard exceedance issues discussed above and further stated that former issues regarding the freeboard exceedances for Cell 3 are closed-out. Pursuant to the receipt of the March 14, 2011 letter, freeboard elevation survey measurements in Cell 3 were no longer required or conducted. During the 1 st quarter 2011, the requirements to measure the wastewater in Cell4A changed as a result of the approval to use tailings Cell 4B. A January 6, 2011 telephone conference as documented in a January 13, 2011 letter from the Executive Secretary, noted that rising wastewater levels were measured in Cell 4A while Denison was awaiting DRC review of construction of Cell 4B. The January 13, 2011 letter provided conditional approval of the variance request for the freeboard limits for Cell 4A noting that upon approval of Cell 48, any freeboard limit exceedance would be resolved as wastewater flows over the spillway constructed between Cell 4A and Cell 4B. During the January 6, 2011 call, DRC agreed to exercise enforcement discretion for a limited time regarding excess Cell 4A wastewater level conditions, contingent upon daily reporting of wastewater levels among other conditions. Denison met the required conditions specified in the January 13, 2011 Executive Secretary letter. Daily reporting was completed as required and the daily reports were submitted under separate cover via electronic mail. The daily measurements are included in Attachment B. A letter from the Executive Secretary dated January 27,2011 which approved the use of Cell 48 and a subsequent letter dated March 15, 2011, stated approval of the DMT and Cell 4A Operations and Maintenance ("O&M") Plans effectively eliminated the former freeboard elevation requirements for tailings Cell 4A. The approvals of the DMT and Cell 4A and 48 O&M Plans also resolved previous freeboard exceedance issues discussed above and further stated that former issues regarding the freeboard exceedances for Cell 4A are closed-out. Pursuant to the receipt of the March 15, 2011 letter, freeboard elevation survey measurements in Ce1l4A were no longer required or conducted. In addition, Part I.D.2 of the Permit provides that under no circumstances shall the freeboard of any tailings cell be less than three feet, as measured from the top of the flexible membrane liner (nFMLn). The top of the FML in CellI is at 5,618.5 finsl, the top of the FML in Cell4A is at 5,598.5 finsl and the top of the FML in Cell 48 is 5600.4 finsl. This means that the maximum wastewater pool elevations in Cells 1, 4A and 48 permitted under Part I.D.2 of the Permit are 5,615.5,5,595.5 and 5597.4 finsl, respectively. The wastewater pool elevations in Cells 1, 3 and 4A, as measured during the Quarter are summarized in the following Table 1. The wastewater elevation measurements for Cell 3 and Cell 4A are for the period prior to the elimination of that requirement as documented on March 14 and 15, 2011 respectively. As previously noted the wastewater pool elevations were not measured in Cell 48 because the fluid levels were too low to measure, that is, below the level at which the survey can be conducted from the banks of Cell 4B. However, during the quarter the wastewater levels in Cell 48 did not exceed 5581.10 finsl, which is the elevation surveyed on May 31, 2011. As indicated in Table 1, the applicable freeboard limits were not exceeded during the Quarter for Cell 1. As noted above, the freeboard limits for Cell 4A were exceeded; 3 N:\Required Repmts\DMT Repmts\2011 DMT\QI 2011 DMT Report\QI 2011 DMT Report.docx however, the DRC agreed to exercise enforcement discretion for a limited time pending their approval for the use ofCell4B. Table 1-Summary of Waste Water Pool Elevations Tailings Maximum Maximum Maximum Cell Wastewater Elevation Wastewater Elevation Wastewater Measured During the Permitted Under Elevation Permitted Quarter (fmsl) License Condition Under Part I.D.2 of 10.3 (fms1) the Permit (fmsl) CellI 5614.20 5,615.40 5,615.50 Cell 3 5,604.34* No Limit No Limit (5,602.50**) (5,605.50**) Cell4A 5,594.21 No Limit No Limit (5,593.74***) (5,595.50***) Cell4B < 5581.10**** 5594.6 5597.4 *This IS the maXImum wastewater elevatIOn ill Cell 3 dunng the Quarter. The reqUIrement to morutor the Cell 3 freeboard was removed during the quarter. ** The Executive Secretary approved the removal of the Cell 3 freeboard limit and authorized the use of Cell 4B on January 27,2011. Cell 3 is nearly full of solids, and is undergoing pre-closure steps. *** The Executive Secretary granted a variance from the Cell 4A freeboard limit on January 13, 2011, and approved the removal of the Cell 4A limit and authorized the use of Cell 4B on January 27, 2011. The previous freeboard limit noted above for Cell4A was not set out in the License. The freeboard limit of 5,593.74 for Cell4A was set out in a letter from the Executive Secretary dated November 20,2008. Denison proposed in the DMT Plan revision dated November 12, 2010 the removal of the freeboard limit for Cell 4A to be replaced by a freeboard limit for new Ce1l4B that will accommodate the freeboard requirements of Cells 2, 3, 4A, and 4B. **** Wastewater elevations in Cell 4B were not measured during the quarter because the wastewater levels were below the level that could be measured from the bank of the cell. However, during the quarter, the wastewater elevation in Ce1l4B did not exceed 5581.10 fmsl, which is the elevation that was surveyed on May 31,2011. It should be noted that the Executive Secretary approved the revisions to the DMT Plan, and authorized use of Cell 4B on January 27, 2011. Based on this approval, measurements of the wastewater elevations in Cell 3 and Cell 4A are no longer required and will not be reported in future DMT quarterly reports. 4.0 MONTHLY SLIMES DRAIN WATER LEVEL MONITORING 4.1 General Part I.D.3(b)(1) of the Permit provides that the Permittee shall at all times maintain the average wastewater recovery head in the slimes drain access pipes of each of Cells 2 and 3 to be as low as is reasonably achievable, in accordance with the DMT Plan. Part I.D.3(b)(3) of the Permit provides that for Cell 3, this requirement shall apply after initiation of dewatering operations. Part I.D.6(c) of the Permit provides that, after the Permittee initiates pumping conditions in the slimes drain layer in Cell 4A, the Permittee will provide: 1) continuous declining fluid heads in 4 N:\Required Reports\DMT RepOlts\2011 DM1\Ql 2011 DMT Repolt\Ql2011 DMT Report.docx the slimes drain layer, in a manner equivalent to the requirements found in Part I.D.3(b), and 2) a maximum head of 1.0 feet in the tailings (as measured from the lowest point of the upper FML) in 6.4 years or less. Similarly, Part I.D.13(c) of the Permit provides that, after the Permittee initiates pumping conditions in the slimes drain layer in Cell 4B, the Permittee will provide: 1) continuous declining fluid heads in the slimes drain layer, in a manner equivalent to the requirements found in Part I.D.3(b), and 2) a maximum head of 1.0 feet in the tailings (as measured from the lowest point ofthe upper FML) in 5.5 years or less. Part I.D.3(b )(2) of the Permit provides that the Permittee shall conduct a monthly slimes drain recovery test at each tailings cell that meets the following minimum requirements: 1) includes a duration of at least 90-hours, as measured from the time that pumping ceases, and 2) achieves a stable water level at the end of the test, as measured by three consecutive hourly water level depth measurements, with no change in water level, as measured to the nearest 0.01 foot. At this time, dewatering operations have not commenced in Cell 3 nor has the Mill initiated pumping conditions in the slimes drain layer ofCell4A or Ce1l4B. As a result, the requirements in Part I.E.7(b) to monitor and record monthly the depth to wastewater in the slimes drain access pipes as described in Part I.D.3 of the Permit apply only to Cell 2 at this time. Accordingly, this Report is limited to slimes drain recovery head information relating to Cell 2 only. Pursuant to Parts I.E.7(b) and I.F.2 of the Permit, Section 8.2 of the DMT Plan and correspondence from DRC, dated February 7,2008, the results of monthly recovery monitoring of the slimes drain for Cell 2 are to be recorded and included with the results of quarterly monitoring in the quarterly White Mesa Mill DMT Performance Standards Monitoring Report and Cell4A and Cell4B BAT Performance Standards Monitoring Reports (the "DMT Reports"). Further, beginning in 2008, quarterly DMT Reports must include both the current year monthly values and a graphic comparison to the previous year. An annual slimes drain recovery head report, that addresses the requirements of Part I.F .11 of the Permit and Section 8.2 of the DMT Plan must be included in the 4th quarter DMT Report. 4.2 Results for the Quarter In accordance with these requirements, the individual monthly slimes drain recovery head monitoring data for the Quarter, which includes the date and time for the start and end of the recovery test, the initial water level, and the final depth to stable water level, is included as Attachment C to this Report. It should be noted that the Cell 2 slimes drain water level decreased from February to March 2011. Although not within this reporting period, the April and May 2011 water levels also decreased. The April and May data will be reported in the second quarter 2011 DMT report submitted on or before September 1, 2011. 5 N:\Required RepOlts\DMT Repurts\2011 DMTlQI 2011 DMT RepOlt\QI 2011 DMT Reporl.docx 4.3 Quality Assurance Evaluation and Data Validation Denison management has evaluated all slimes drain data collected, data collection methods, and all related calculations required by the Permit, and have verified the accuracy and reliability of both the data and calculations reported. As a result of its quality assurance evaluation and data validation review, Denison has concluded that all of the 2009, 2010 slimes drain tailings fluid elevation measurements and the 2011 monthly slimes drain tailings fluid elevation measurements to date meet the test performance standards found in Part I.D.3(b)(2) of the Permit and can be used for purposes of determining compliance with the requirements of Part I.D.3(b)(2) ofthe Permit. 4.4 Graphic Comparison to Previous Year A graph showing the final depth to stable water level readings for each month in 2009 through 2011, for which validated data is available (see Section 4.3 above), is included as Attachment D, which shows a graphic comparison of this Quarter's data to data for 2009 and 2010. 5.0 WEEKLY WASTEWATER LEVEL MONITORING: ROBERTS POND During the Quarter, Mill personnel monitored and recorded weekly the wastewater levels at Roberts Pond to determine compliance with the DMT operations standards in Part I.D.3(e) of the Permit. Part I.D.3(e) of the Permit provides that the water level in Roberts Pond shall not exceed an elevation of 5,624 finsl. The maximum wastewater elevation measured in Robert's Pond during the quarter was 5623.70 finsl, which did not exceed the maximum permitted elevation of 5,624 finsl. The results of such monitoring are included in Attachment A. 6.0 WEEKLY FEEDSTOCK STORAGE AREA INSPECTIONS AND INSPECTIONS OF FEEDSTOCK MATERIAL STORED OUTSIDE THE FEEDSTOCK STORAGE AREA Weekly feedstock storage area inspections were performed by the Mill's Radiation Safety Department, to confirm that the bulk feedstock materials are stored and maintained within the defined area described in the Permit and that all alternate feedstock located outside the defined feedstock area is maintained within containers that comply with the requirements of Part I.D.11 of the Permit. The results of these inspections are recorded on the Weekly Mill Inspection forms, which are available at the Mill for inspection. Two items were noted during the first quarter inspections. During the first part of the quarter there were several inspections where there was standing frozen water on the ground near the feedstock piles due to weather conditions. As the areas melted, the ground was graded so that the solution moved down the sumps and out to the tailings cells. Also, during the week of March 20, 2011 the road grader hit 4 drums ofKF Alternate Feed that is stored in steel drums on the Ore Pad. The four drums were 6 N:\Required RepOIts\DMT Reporls\20 11 DMTlQ 1 2011 DMT Report\Q I 2011 DMT Report.docx placed in steel over-pack drums and placed back into the stockpile. No other items were noted during the first quarter inspections. 7.0 TAILINGS CELLS AND POND LINER SYSTEM REPAIRS The liner systems at Cells 1, 2, and 3 were inspected on a daily basis pursuant to the requirements of Sections 2.1 and 2.2 of the Mill's DMT Plan. The results of those inspections are recorded on the Mill's Daily Inspection Data sheets, which are available at the Mill for review. A visual inspection of Roberts Pond was performed on a weekly basis. The results of those inspections are recorded on the Weekly Mill Inspection forms, which are available at the Mill for review. In accordance with Part I.E.7(f) of the Permit, in the event that any liner defect or damage is identified during a liner system inspection, the Mill shall immediately implement the currently approved Liner Maintenance Provisions. Further, Part I.F. 2 of the Permit provides that when a liner repair is performed at any tailings cell or at Roberts Pond, a Repair Report shall be prepared and included with the next quarterly DMT report. Mill personnel detected an accumulation of fluid in the LDS standpipe of Cell 1 on Wednesday, June 2,2010. Transfer of fluids from CellI to Cell4A to lower the CellI level sufficiently to detect and repair any damage began on June 2,2010. Maintenance identified some FML damage and performed repairs during the period when the level was lowest. Following the repairs, the level was allowed to gradually return to its June 3 level of 5614.57 feet and the LDS remained dry until, after a period of heavy rains in late July and early August (and an increase in the solution in level in CellI), a recurrence of the LDS liquid level was identified on August 7, 2010. At that time, the Mill resumed pumping CellI to Cell4A to lower the solution level. During discussions on August 12,2010, DRC personnel agreed with Denison that both the June and August identifications of LDS solutions were part of one event. The temporary cessation of flow into the LDS between June and August detections may have resulted from lowering the solution level to a point below some tears or damage that were not identified during the July repair efforts. Denison submitted to DRC a plan and schedule for inspection and repair, if necessary, ofthe inside slope areas of the CellI FML above the 5613 foot level, on August 18, 2010, and updated plan on August 30,2010. DRC conditionally approved the updated plan in a letter dated September 22, 2010. The updated plan commits to completion ofthe repairs by July 31,2012. The September 22,2010 DRC letter and Part l.F.2 of the groundwater discharge permit require that the repairs be documented in a liner repair report which shall be included with the next quarterly DMT report, that is, in the DMT Report following completion of the repairs to be reported. Consistent with the proposed date for completion of repairs in July 2012, Denison will include the required repair report with the third quarter DMT report to be submitted on December 1,2012. 7 N:\Required RepOlts\DMT RepOl1s\2011 DMT\QI 2011 DMT RepOlt\QI 2011 DMT RepOlt.docx During the Quarter, no liner repairs were perfonned at any of the Mill's tailings cells other than Cell 1. Consistent with the approved repair plan and schedule, repairs to the Cell 1 FML were conducted during the months of September and October 2010, ceased during the months of November and December 2010. Repairs to the Cell1liner resumed in April 2011. 8.0 DECONTAMINATION PADS 8.1 Summary of Weekly Inspections Part I.F.7 (g) of the Permit and Section 3.1 of the DMT Plan require that a weekly inspection of the New Decontamination Pad be perfonned, including that the vertical inspection portals on the New Decontamination Pad which are located between the primary and secondary containments be visually observed on a weekly basis as a means of detecting any leakage from the primary containment into the void between the primary and secondary containments. The BAT perfonnance standards for the New Decontamination Pad are set out in Part I.D.l4 of the Pennit. The New Decontamination Pad was placed into service on March 22, 2010. Use of the New Decontamination Pad was temporarily suspended during the second quarter 2010 as a result of a cease and desist order from DRC dated May 18, 2010. Because the New Decontamination Pad was not in use after the second quarter 2010, the weekly inspections of the containments were stopped for the remainder of 2010. The Executive Secretary provided authorization for use of the New Decontamination Pad in a letter dated February 1, 2011. Use of the New Decontamination Pad resumed in February 2011 and the weekly inspections were resumed as required. Table 2 below indicates the water level measurements in each portal measured during the 1 st quarter 2011 after receipt of authorization for use from the Executive Secretary that correspond to the usage of the New Decontamination Pad. 8 N:\Required Rep0l1s\DMT RepOlts\20 11 DM1\Q 1 2011 DMT RepOlt\Ql 2011 DMT Rep0l1.docx Table 2 -New Decontamination Pad Inspection Portal Level for the First Quarter 2011 I. 2. Portal! Portal! Portal! Liquid Level Liquid Level Liquid Level Date (in Feeti (in Feet) (in Feetl 1/7/2011 Not Measured2 Not Measuredz Not Measuredl 1114/2011 Not Measured~ Not Measured2 Not Measured~ 112112011 Not Measured· Not Measuredz Not Measuredl 1128/2011 Not Measured' Not Measured~ Not Measured~ 2/4/2011 0.00 0.00 0.00 2111/2011 0.00 0.00 0.00 2/18/2011 0.00 0.00 0.00 2/25/2011 0.00 0.00 0.00 3/4/2011 0.00 0.00 0.00 311112011 0.00 0.00 0.00 3118/2011 0.00 0.00 0.00 3/25/2011 0.00 0.00 0.00 4/1/2011 0.00 0.00 0.00 As per part I.D.14 of the Permit, the water level shall not exceed 0.10 foot above the cement floor in any LDS access pipe at any time. The New Decontamination Pad portals were not measured during this time because it was not in use. The Executive Secretary letter dated February 1, 2011 authorized the use of the New Decontamination Pad. As can be seen from the foregoing table, no fluids were observed to be present in any of the portals during the first quarter. Any soil and debris identified during the weekly inspections was removed from the wash pad of the New Decontamination Pad, in accordance with part I.D.14 (a) of the Permit and Section 3.1 (e)(i)(F) of the DMT Plan. No cracks greater than 1/8" were observed during any weekly inspections. 8.2 Annual Inspection of Existing Decontamination Pad As required by Part I.F.12 of the Permit, annual inspections of the existing decontamination pad will be conducted during the second quarter 2011. The documentation for the annual inspections will be reported in the Second Quarter DMT report to be submitted on or before September 1, 2011. 8.3 Annual Inspection of New Decontamination Pad As previously stated, the New Decontamination Pad was placed into service on March 22,2010. Use of the New Decontamination Pad was temporarily suspended as a result ofa cease and desist order from DRC dated May 18, 2010. DRC's approval for use of the New Decontamination Pad was granted on February 1, 2011, following submittal of revisions to the DMT Plan and DRC observation of hydrostatic testing of the in-ground water holding tanks. Revisions to the DMT Plan were submitted by Denison on November 12, 2010 and reviewed by DRC. Hydrostatic 9 N:\Required Reports\DMT RepOlts\2011 DMTlQl 2011 DMT RepOlt\Ql 2011 DMT Rep011.docx testing was re-perfonned from November 24 to 26, 2010 following a 10-day advanced notice to DRC on November 12, 2010. The Executive Secretary provided an authorization for use of the New Decontamination Pad in a letter dated February 1, 2011. Use of the New Decontamination Pad resumed in February 2011. The New Decontamination Pad was taken out of service and inspected during the second quarter 2010 to ensure integrity of the wash pad's exposed concrete surface, as required by Part I.F .12 of the Pennit and Section 6.5 of the DMT Plan. No abnonnalities were identified. No significant cracks (greater than 1/8 inch), deterioration or damage were identified. No repairs were required at the time of the inspection. A few minor cracks (less than 1/8 inch) were observed. These minor cracks were repaired to prevent additional deterioration even though the repairs are not required by the Pennit. The 2011 annual inspection will be conducted during the second quarter of 2011. The 2011 annual inspection will continue to monitor the items noted above which resulted from the 2010 annual inspection. 9.0 CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS REPORT FOR THE QUARTER This Section constitutes the routine Cell 4A and Cell 4B BAT Performance Standards Monitoring Report for the Quarter, as required under Part I.F.3 of the Pennit. 9.1 LDS Monitoring 9.1.1 Operational Status ofLDS Pumping and Monitoring Equipment The LDS pumping and monitoring equipment for each of Cell4A and Cell 4B, including, but not limited to, the submersible pump, pump controller, head monitoring, and flow meter equipment, operated continuously during the Quarter. During the Quarter, there were no failures of any pumping or monitoring equipment not repaired and made fully operational within 24-hours of discovery, as contemplated by Part I.E.8(a)(I) of the Pennit for Cell4A and as contemplated by Part I.E. 12(a)(I) of the Pennit for CeIl4B. 9.1.2 Measurement of Weekly Fluid Head at the Lowest Point in the Secondary Membrane The readings pertaining to the fluid head above the lowest point in the secondary FML for Cell 4A and Cell4B are provided in Attachment F. As can be seen from a review of Attachment F, at no point in the Quarter did the fluid head in the Cell 4A LDS sump exceed a I-foot level above the lowest point in the lower FML on the Cell floor (where for purposes of compliance monitoring this I-foot distance equates to 2.28 feet above the LDS system transducer), as stipulated by Part 1.E.8(a)(2) of the Pennit. During the Quarter, the fluid head in the Cell 4A LDS sump did not exceed 9.6 inches above the LDS transducer. 10 N:\Required RepOlts\DMT RepOlts\20 11 DMT\Q 1 2011 DMT RepOlt\Q 1 2011 DMT RepOlt.docx As can be seen from a review of Attachment F, at no point in the Quarter did the fluid head in the Cell 4B LDS sump exceed a I-foot level above the lowest point in the lower FML on the Cell floor, as stipulated by Part I.E.12(a)(2) of the Permit. For the purposes of compliance monitoring this I-foot distance equates to 2.25 feet above the LDS system transducer. During the quarter the fluid head in Ce1l4B sump did not exceed 14.7 inches above the LDS transducer. 9.1.3 Measurement of the Volume of Fluids Pumpedfrom the LDS The readings pertaining to the volume of fluids pumped are provided in Attachment F. As can be seen from a review of Attachment F, during the Quarter, the average daily LDS flow volume in Cell 4A did not exceed 24,160 gallons/day, as stipulated by Part I.E.8(a)(3) of the Permit. Based on the maximum head recorded on the FML during the Quarter of about 39 feet, the allowable flow rate would be approximately 23,955 gallons per day, as determined under the Mill's Cell4A BAT Operations and Maintenance Plan, Table lA (also included in Attachment F of this report), and assuming a liner elevation of 5555.55 feet and approximately 39.66 acres of liquid area. The average daily flow volume in Cell 4A did not exceed the calculated flow volume of 23,955 gallons/day. During first quarter 2011, a total of 3160 gallons were pumped from Cell 4A LDS. As previously stated, wastewater pool elevation surveys were not conducted for Ce1l4B because the fluid levels were too low to measure from the banks of Ce1l4B. However, during the quarter the wastewater pool elevation in Cell 4 B did not exceed 5581.10 finsl, which is the elevation surveyed on May 31, 2011. Based on that elevation the allowable flow rate would be 15,219 gallons/day. The average daily LDS flow volume in Ce1l4B did not exceed 15,219 gallons/day, as stipulated by Part I.E. 12(a)(3) ofthe Permit. 9.2 Measurement of Weekly Wastewater Fluids in Ce1l4A Weekly fluid elevations for Cell 4A and Cell 4B are provided in Attachment A along with elevations for Cells 1 and 3 and Roberts Pond. During the Quarter, the Mill operated and maintained wastewater levels in Cell4A and Cell 4B to provide the minimum vertical freeboard as required by Part I.E. 12(a)(4) ofthe Permit. See the discussion in Section 3 above. 9.3 Slimes Drain Recovery Head Monitoring As the Mill has not initiated pumping conditions in the Ce1l4A or Ce1l4B slimes drain system at this time, monthly recovery head tests and fluid level measurements are not required to be made at this time pursuant to Part I.E.8(b) ofthe Permit. 11 N:\Required Rep011s\DMT Reports12011 DMTlQI 2011 DMT Repolt\QI 2011 DMT Rep011.docx 10~O ANNUAL SLIMES DRAIN RECOVERY HEAD REPORT FOR THE CALENDAR YEAR 2011 The annual slimes drain recovery head report for Cell 2 for calendar year 2011 (the "Period"), as required under Parts 1.D.3 (b) and I.F.ll of the Pennit and Section 8.2 of the DMT Plan is included with the 4th quarter DMT report which will be submitted on or before March 1, 2012. 12 N;\RlXluin.>() Rcports\DMT RcpOlls\20 1 I DMTlQ I 20 t t DMT Report\QI 20 II DMT Rcpolt.docx 11.0 SIGNATURE AND CERTIFICATION This document was prepared by Denison on May 31, 2011. By: Davi Fryd lund Vice President, Regulatory Affairs and Counsel CERTIFICATION: I certify, under penalty of law, that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the in rmation submitted is, to the best of my knowledge and belief, true, accurate and com teo I aware that there are significant penalties for submitting false information, includin e po lbility of fine and imprisonment for knowing violations . . F Y enlund Vice Presiden , Regulatory affairs and Counsel Denison Mines (USA) Corp. 13 N :\Required Reports\DMT RepOltS\20 II DM1\Q I 20 II DMT RepOlt\Q I 20 II DMT RepOlt.docx Attachment A Date Cell 1 Free Board 1 5615.40 11712011 5613.96 111112011 5613.84 1114/2011 5613.84 112112011 5613.80 1128/2011 5614.20 2/412011 5613.96 2/11/2011 5613.98 2/18/2011 5613.80 2/2512011 5613.77 3/4/2011 5613.80 3/1112011 5613.59 3118/2011 5613.65 3/25/2011 5613.62 4/112011 5613.39 Tailings Pond Elevations 1 st Quarter Elevations 2011 Cell 32 Roberts Pond 5602.50 5624.00 5603.98 5623.70 5604.03 5622.68 5604.30 5620.86 5604.33 5620.32 5604.34 5622.18 5604.24 5621.20 5602.34 5622.20 5602.12 5623.17 5602.25 5621.28 No longer required 5621.28 5619.77 5619.24 5619.46 Ce1l4A3 5593.74 5593.37 5593.84 5594.01 5594.14 5594.21 5594.13 5593.38 5592.72 5591.51 5591.51 No longer required CeU4B4 5594.6 * * * * * * * * * * The wastewater elevations were not measured in Cell4B during the quarter because the fluid levels were below the the level at which the survey can be conducted from the bank ofCell4B. However, during the quarter, the wastewater fluid levels did not exceed 5581.10 finsl which is the elevation surveyed on May 31, 2011. 1 Freeboard as permitted under License condition 10.3 which is no longer applicable to Cell 3 or Cell4A. 2Cell 3 is nearly full of solids, is undergoing pre-closure steps, and the freeboard limit specified here is no longer required as of the January 27 and March 14, 2011 letters from DRC. 3 The freeboard limit for Cell4A is not set out in the License. The freeboard limit of 5,593.74 for Ce1l4A is set out in a letter from the Executive Secretary dated November 20,2008. Denison proposed in the DMT Plan revision dated November 12, 2010 the removal of the freeboard limit for Ce1l4A to be replaced by a freeboard limit for new Cell4B that will accommodate the freeboard requirements of Cells 2, 3, 4A, and 4B. The Executive Secretary granted a variance from the Cell4A freeboard limit on January 13,2011 and approved the removal of the Cell4A limit and the use ofCell4B on January 27,2011. 4 The freeboard limit listed is the value specified in the DMT plan when the pool surface area is 40 acres. A pool surface area of 40 acres is used because there are no beaches present in Cell 4B at this time. Attachment B January 14, 2011 VIA E-MAIL AND OVERNIGHT DELIVERY Rusty Lundberg, Co-Executive Secretary Utah Water Quality Board Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144810 Salt Lake City, UT 84114-4810 Denison Minas (USA) Corp. 1050 17th Straat, Suite 1150 Denvar, CO 80265 USA Tal: 303628·7798 Fax: 303 389-4125 www.danisonmines.com Re: Stat. of Utah Ground Water Discharge Permit No. UGW37DDD4 White Mesa Uranium Mil/- Notice Pursuant to Part I.G.3 ofthe Permit and UAC R317-6-6.16(C) Dear Mr. Lundberg: Please take notice pursuant to Part I.G.3 of the White Mesa Mill's (the "MiII's") State of Utah Groundwater Discharge Permit No. UGW370004 (the "Permit") and Utah Administrative Code ("UAC") R313-6-6.16(C) that Denison Mines (USA) Corp. ("Denison"), as operator of the Mill and holder of the Permit, failed to meet the discharge minimization technology ("DMT") standards in Part I.D.6.d) of the Permit, by allowing the wastewater elevation in the Mill's tailings Cell 4A to exceed the freeboard limit for that Cell by approximately 0.12 inches, as described in more detail below. This exceedance was discovered at 3:45pm on Monday January 10, 2011 . Initial notice of this failure to maintain DMT was given by telephone to Mr. Loren Morton of the Utah Department of Environmental Quality at 11 :40am on Tuesday January 11, 2011 at 801-536-4262 (within 24 hours of the discovery). 1. Facts and Background Information a) Condition 10.3 of the Mill's State of Utah Radioactive Materials License No. UT1900479 (the "License") provides that freeboard limits for Cells 1, 3 and 4A shall be set in accordance with procedures that have been approved by the U.S. Nuclear Regulatory Commission ("NRC"). Under those procedures: (i) The freeboard limits are set as per the January 10, 1990 Drainage Report for Cell 1 at a liquid maximum elevation of 5,615.4 feet above mean sea level ("fmsl"); (ii) The freeboard limit for Cell 3 is determined annually using a formula set out in the procedure. The current freeboard limit for Cell 3 was previously calculated under this procedure at 5,601.6 fmsl. However, in State of Utah Department of Environmental Quality ("UDEQ") correspondence dated November 20, 2008 an interim variance and limit was established at 5,602.5 fmsl for Cell 3; N:\Notices\Cell 4A Freeboard notices\01 .14.11 Notice to RLundberg Cell 4A Freeboard.doc Letter to Mr. Rusty Lundberg January 14, 2011 Page 2 (iii) In conjunction with the variance established under (ii) above, an interim maximum elevation for Cell4A was also established at 5,593.74 fmsl; (iv) The maximum elevation of 5,593.74 fmsl for Cell 4A has been set assuming that the total probable maximum precipitation ("PMP") volume for Cells 2, 3 and 4A will be accommodated in Cell 4A By letter dated December 11, 2008, Denison applied for an amendment to the License to set the freeboard limit for Cell4A at 5,593.74 fmsl and to eliminate the need to set a freeboard limit for Cell 3, given that the freeboard limit of 5,593.74 fmsl for Cell 4A is adequate to accommodate the total PMP volume for Cells 2, 3 and 4A; and (v) In addition, Part I.D.2 of the Permit provides that under no circumstances shall the freeboard of any tailings cell be less than three feet, as measured from the top of the flexible membrane liner ("FML"). The top of the FML in Cell 1 is at 5,618.5 fmsl, and the top of the FML in Cell 3 is at 5,608.5 fmsl. This means that Part I.D.2 of the Permit provides a secondary requirement that the maximum wastewater pool elevations in Cells 1 and 3 cannot exceed 5,615.5 and 5,605.5 fmsl, respectively. (vi) Part I.D.6 of the Permit provides that under no circumstances shall the freeboard of Cell 4A be less than three feet, as measured from the top of the FML. The top of the FML in Cell 4A is at 5,598.5 fmsl. This means that Part I.D.6 of the Permit provides a secondary requirement that the maximum wastewater pool elevation in Cells 4A cannot exceed 5595.5 fmsl. b) In a letter to Denison dated April 29, 2010, UDEQ has indicated their agreement with Denison's position that the freeboard limit is not applicable to Cell 3, since Cell 3 is in pre-closure stages, and the PMP flood volume of Cell 3 can be attributed to, and managed in, Cell 4A The April 29 letter indicated that to formalize this removal of freeboard limit, three documents needed to be revised, specifically the Mill's Radioactive Materials License ("RML"), the Discharge Minimization Technology ("DMT") Plan, and the Cell 4A Operations and Maintenance ("0&M") Plan. Denison submitted revisions to each of those documents for UDEQ approval on August 4,2010. c) In July, 2010, Denison received approval of a revision of the RML and Permit allowing construction of tailings Cell 4B. Cell 4B has been constructed but has not yet been authorized for use. Denison has submitted revisions to the Reclamation Plan, O&M Plan, DMT Plan, and Contingency Plan, on November 11, 2010, December 20, 2010, and January 10, 2011, 2010. These plans are still undergoing review and revision, and UDEa has not yet granted approval of the plans or authorization for use of Cell 48. d) The Mill has been in the process of filling Cell 3 with tailings solids and closing the cell. Cell 3 no longer has any capacity to receive tailings liquids. In the process of filling Cell 3 with solids, the Mill alternately discharged CCD solids to Cell 3 and transferred liquids from Cell 3 to Cell 4A, through October 2010. e) On June 3, 2010 Denison notified UDEa that an accumulation of fluid had been detected in the Cell 1 Leak Detection System ("lDS''). Following an intial series of FML repairs during June 2010, and as a result of UDEQ's Conditional Approval and Confirmatory Action letter of September 22, 2010 and telephone conversations and correspondence with UDEa on August 18, August 23, September 15, and September 21, 2010, Denison committed to maintain the liquid level in Cell 1 below 5613 fmsl to allow inspection and repair of the FML surface above 5613 fmsl. To achieve and maintain this reduced liquid level in Cell 1, the Mill has periodically transferred fluids from Cell 1 to Cell 4A OENISOJ) ~ MINES Letter to Mr. Rusty Lundberg January 14, 2011 Page 3 f} The Mill experienced heavy precipitation during the week of December 27,2010 and ongoing lesser precipitation during the following two weeks, which also increased the liquid levels in both Cell 1 and 4A. g) Therefore, since November 2010, Cell 4A has been the Mill's only tailings cell in full service and has been used to manage the majority of all tailings volume in the Mill system including: a. CCD solids, b. all other tailings liquids, c. tailings solutions transferred from Cell 1, and d. precipitationlrunoff from the areas of Cells 2, 3 and 4A. h) During the weekly inspection and survey on January 6, 2011, the survey of the tailings liquid pool elevation indicated that Cell 4A had a pool elevation of 5593.28 fmsl resulting in 5.52 inches of freeboard capacity (that is, was 5.52 inches below the freeboard limit). At that time, Cell 4A liquid level was 29.28 inches below the spillway Into Cell 4B. i) Denison alerted DRC on January 6, 2011 that Cell 4A was filling and approaching its freeboard limit. During that discussion UDEa advised Denison that UDEa could use enforcement discretion to temporarily waive the Cell 4A freeboard limit until Cell 4B is authorized for service, provided that i) Denison notified UDEa when the Cell 4A freeboard limit is exceeded, and ii) Denison did not discharge any fluids over the spillway into CeIl4B. j) During the tailings survey measurement performed at approximately 3:45pm on January 10, 2011, the wastewater pool elevation in Cell 4A was measured to be 5593.75 fmsl, compared to the current freeboard limit for Cell 4A of 5593.74 fmsl, representing an exceedance of O.01feet, or 0.12 inches. At that time, Cell 4A level was 23.64 inches below the spillway to Cell 4B. k) Denison notified UDEa by phone call at 11 :40am on Tuesday that the Cell 4A liquid level had exceeded the freeboard limit. I) The Mill has been running on a 10-day on and 4-day off operating cycle. 2. Action Taken Upon receipt of the initial survey results, the Mill's Environmental Coordinator notified the Mill Manager at 3:45pm that day. The following plan of action was immediately put into place in accordance with section 5.1 of the Mill's Contingency Plan: a) The Mill Manager had operations crews stop the discharge of CCD solids into Cell 4A; b) The Mill Manager order the Mill into a scheduled 4-day shutdown; c) This plan was implemented beginning at 3:45pm on Monday January 10, 2011; d) Verbal notification was given to the Executive Secretary at 11 :40am on January 11, 2011, within 24 hours of discovery. This verbal notification was followed by this written notification within five days of discovery; OENISONr;) ~ MINES Letter to Mr. Rusty Lundberg January 14, 2011 Page 4 e) Solutions cannot be transferred to any other cell to directly reduce the volume in Cell 4A, as no other cell is available to receive liquids at this time. f) On Thursday January 13, 2010, Denison formally requested that UDEQ grant a regulatory variance from the freeboard limit in Cell 4A. g) By email on Thursday January 13, 2010, UDEQ granted conditional approval of a regulatory variance from the freeboard limit on Cell 4A. The conditional approval letter agreed that Cell 4A freeboard limit exceedance will be resolved once Cell 4B is put in service and liquid is permitted to be pumped from Cell 4A to Cell 48, and required that: a. Discharge of any tailings solids or wastewater in Cell 4B is prohibited until Denison received written approval from UDEQ for use of CeIl4B, b. Denison will make and report to UDEQ daily measurement of Cell 4A wastewater level, and c. The variance will expire on March 1, 2011 . 3. Root Cause The root cause analysis is as follows a) Due to the intentional filling and closure of Cell 3 and the requirement to reduce the level in Cell 1, Cell 4A is currently the only tailings cell receiving liquids in the Mill tailings system. b) Cell4A has received all of the following materials: a. CCD solids, b. all other tailings liquids, c. tailings solutions transferred from Cell 1 , and d. precipitation/runoff from the areas of Cells 2, 3 and 4A. c) Heavy preCipitation during the week of December 27, 2010 and ongoing precipitation since that week, also increased the liquid levels in both Cell 1 and 4A. d) UDEQ authorization for use of Cell 4B has not been received as the required plans submitted by Denison are still undergoing re-reviewand revision. e) Upon review of the circumstances, both UDEQ and Denison agreed that that Cell 4A freeboard limit exceedance will be resolved once Cell 4B is put in service and liquid is pumped from Cell 4A to Cell 4B . Both UDEQ and Denison agreed to the need for an interim variance from the Cell 4A freeboard level, which has been granted by UDEQ on January 13, 2011. 4. Actions That Will be Taken to Prevent a Reoccurrence of this Incident The following actions will be taken to prevent a reoccurrence of this incident: a) Solutions cannot be transferred to any other cell to directly reduce the volume in Cell 4A, as no other cell is available to receive liquids at this time. b) On Thursday January 13, 2011, Denison formally requested that UDEQ grant a regulatory variance from the freeboard limit in Cell 4A. OENISONI) ~ MINES .. Letter to Mr. Rusty Lundberg January 14, 2011 Page 5 c) By email on Thursday January 13, 2011, UDEQ granted conditional approval of a regulatory variance from the freeboard limit on Cell 4A. d) Denison has already begun making daily measurements of Cell 4A liquid level and has begun reporting them to UDEQ. Liquid level data including the weekly level reading on December 31,2010 and the daily level readings beginning on January 6, 2011 are provided in the attached Table 1. 5. Affirmative Defense Denison believes that the affirmative defense in Part I.G.3.c) of the Permit should be applicable to this incident, for the following reasons: a) Notification By virtue of the initial oral notification given to UDEQ at 11 :40am on Tuesday January 11, 2011 (within 24 hours of the discovery) and this written notice, Denison has submitted notification according to UAC R317-6- 6.13. b) Failure was not Intentional or Caused by the Permittee's Negligence The exceedance of the freeboard limit was not intentional or caused by Denison's negligence, either in action or in failure to act. The Mill was taking actions to manage the freeboard requirements of all of its active tailings cells while filling Cell 3 for closure and maintaining a reduced level of Cell 1 as committed in the Cell 1 Repair Plan. c) The Permittee has Taken Adequate Measures to Meet Permit Conditions f) Denison has taken adequate measures to meet Permit conditions in a timely manner. The provisions of the Mill's Contingency Plan were implemented immediately. UDEQ was notified in advance of the impending exceedance and upon observance of the actual exceedance. Upon review of the Circumstances, both UDEQ and Denison agreed that that Cell 4A freeboard limit exceedance will be resolved once Cell 4B is put in service and liquid is pumped from Cell 4A to Cell 4B. Both UDEQ and Denison agreed to the need for an interim variance from the Cell 4A freeboard level, which has been granted by UDEQ on January 13, 2011. d) The Provisions of UCA 19-5-107 Have Not Been Violated The provisions of Utah Code 19-5-107 have not been violated. There has been no discharge of a pollutant into waters of the state. Denison has not caused pollution which constitutes a menace to public health and \ welfare, or is harmful to wildlife, fish or aquatic life, or impairs domestic, agricultural, industrial, recreational, or other beneficial uses of water, nor has Denison placed or caused to be placed any waste in a location where there is probable cause to believe it will cause pollution. There was no discharge of solutions from the Mill's tailings impoundments. Please contact the undersigned if you have any questions or require any further information. OENISOJ) ~ MINES Letter to Mr; Rusty Lundberg January 14, 2011 Pagel Yours very truly. DENISON MINES (USA) CORP. ~~ Jo Ann Tischler Director, Compliance and Permitting cc: Rtch Bartlett David C. Frydenlund Harold R. Roberts DaVId E. Turk central flies OENI50J) J MINES Table 1: Cell 4A Freeboard Observation Data liquid Pool Elevation Freeboard elev. Inches to Elevation of Inches to Date Time (fmsl) (fmsl) freeboard Spillway (fmsl) spillway 12/31/2010 1:20 PM 5593.13 5593.74 7.32 5595.72 31.08 1/6/2011 12:30 PM 5593.28 5593.74 5.52 5595.72 29.28 1/7/2011 8:30AM 5593.37 5593.74 4.44 5595.72 28.2 1/10/2011 3:45 PM 5593.75 5593.74 -0.12 5595.72 23.64 1/11/2011 9:05AM 5593.84 5593.74 -1.2 5595.72 22.56 1/12/2011 10:15 AM 5593.93 5593.74 -2.28 5595.72 21.48 1/13/2011· 7:45 AM 5593.97 5593.74 -2.76 5595.72 21 1/14/2011 9:30AM 5594.01 5593.74 -3.24 5595.72 20.52 ·Receipt of UDEQ waiver requiring daily measurement and reporting of Cell4A level. Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Friday, January 14, 2011 3:45 PM 'Rusty Lundberg' 'Loren Morton'; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett Cell 4A Freeboard Notice Notice Pusuant to White Mesa Mill GWDP Part I.G.3 01.14.11 notice pursant to GWDP Part I.G.3 Cell4A freeboard.pdf Enclosed please find Denison Mines (USA) Corp.'s Notice pursuant to Part I.G.3 of the White Mesa Mill's groundwater Discharge Permit, regarding exceedance of the freeboard limit for tailings CeIl4A. A separate hard copy has been transmitted by Federal Express. Please contact me if you have any questions regarding this submittal. Yours truly, Jo Ann Tischler 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Saturday, January 15, 2011 3:27 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/15/11 Cell_ 4A_Elevation_ Observation.xlsx Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Your truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). From: Jo Ann Tischler Sent: Friday, January 14, 2011 3:45 PM To: Rusty lundberg Cc: Loren Mortonj Harold Robertsj David Frydenlundj David Turkj Ron Hochsteinj Kathy Weinel; Meredith Goblej Richard Bartlett Subject: Cell 4A Freeboard Notice Notice Pusuant to White Mesa MIll GWDP Part I.G.3 Enclosed please find Denison Mines (USA) Corp.'s Notice pursuant to Part I.G.3 of the White Mesa Mill's groundwater Discharge Permit, regarding exceedance of the freeboard limit for tailings Cell 4A. A separate hard copy has been transmitted by Federal Express. Please contact me if you have any questions regarding this submittal. Yours truly, Jo Ann Tischler 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Sunday, January 16, 2011 6:35 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/16/11 CeiL 4A_Elevation_Observation 01.16.11.xlsx Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2e11. Please contact me if you have any questions regarding this transmittal. Your truly, Jo Ann Tischler Director, Compliance and Permitting t: (3e3) 389-4132 f: (3e3) 389-4125 leSe 17th Street, Suite 9Se, Denver, CO 8e26S DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). From: Jo Ann Tischler Sent: Friday, January 14, 2e11 3:45 PM To: Rusty Lundberg Cc: Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett Subject: Cell 4A Freeboard Notice Notice Pusuant to White Mesa MIll GWDP Part I.G.3 Enclosed please find Denison Mines (USA) Corp.'s Notice pursuant to Part I.G.3 of the White Mesa Mill's groundwater Discharge Permit, regarding exceedance of the freeboard limit for tailings Cell 4A. A separate hard copy has been transmitted by Federal Express. Please contact me if you have any questions regarding this submittal. Yours truly, Jo Ann Tischler 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Monday, January 17, 2011 11: 13 AM 'Rusty Lundberg' 'Loren Morton'; David Frydenlund; Ron Hochstein; Harold Roberts; David Turk; Meredith Goble; Richard Bartlett Cell 4A Liquid Level daily Update -White Mesa Mill 01/17/11 Cell4A Elevation Observation.pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Your truly, Jo Ann Tischler 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Tuesday, January 18,2011 5:17 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel ; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/18/11 Cell_ 4A_Elevation_Observation 01 .18.11.xlsx Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Your truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). From: Jo Ann Tischler Sent: FridaYI January 14, 2011 3 :45 PM To: Rusty lundberg Cc: loren Mortonj Harold Robertsj David Frydenlundj David Turkj Ron Hochsteinj Kathy Weinelj Meredith Goblej Richard Bartlett Subject: Cell 4A Freeboard Notice Notice Pusuant to White Mesa MIll GWDP Part I.G.3 Enclosed please find Denison Mines (USA) Corp.ls Notice pursuant to Part I.G.3 of the White Mesa MillIs groundwater Discharge Permit, regarding exceedance of the freeboard limit for tailings Cell 4A. A separate hard copy has been transmitted by Federal Express. Please contact me if you have any questions regarding this submittal. Yours trulYI Jo Ann Tischler 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Thursday, January 20, 2011 12:42 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/20/11 Cell4A Elevation Observation 01 20 11.pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2e11. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 leSe 17th Street, Suite 9S0, Denver, CO 8e26S DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Friday, January 21, 201112:47 PM 'Rusty Lundberg' 'Loren Morton'; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/21/11 Cell4A Elevation Observation 01 21 11.pdf Attached please find Denison Mines (USA) Corp. 's daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2811. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (383) 389-4132 I f: (383) 389-4125 1858 17th Street, Suite 958, Denver, CO 88265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Saturday, January 22, 2011 1 :16 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/21/11 Cell_ 4A_Elevation_Observation_01_22_11.xlsx Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Monday, January 24, 2011 8:44 AM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/23/11 Cell 4A Elevation Observation 01 23 11 .pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. The attached data for Sunday January 23, 2011 was measured, as required by the DRC letter, on Sunday January 23, 2011 and transmitted from the Mill immediately. Due to maintenance- related computer server shutdowns and transmission delays during the weekend, the data was received at Denver corporate offices today, Monday January 24, 2011 and transmitted immediately upon receipt. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Monday, January 24, 2011 4:22 PM 'Rusty Lundberg' 'Loren Morton'; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/24/11 Cell 4A Elevation Observation 01 24 11 .pdf Attached please find Denison Mines (USA) Corp. 's daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13} 2011. Please contact me if you have any questions regarding this transmittal. Yours truly} Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Tuesday, January 25,2011 9:47 AM 'Rusty Lundberg' 'Loren Morton'; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01/25/11 Cell 4A Elevation Observation 01 25 11.pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2811. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (383) 389-4132 f: (383) 389-4125 1858 17th Street, Suite 958, Denver, CO 88265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Wednesday, January 26, 2011 11 :34 AM 'Rusty Lundberg' 'Loren Morton'; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level daily Update -White Mesa Mill 01126111 Cell4A Elevation Observation 01 2611.pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Thursday, January 27, 2011 1 :56 PM Jo Ann Tischler; 'Rusty Lundberg' 'Loren Morton'; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level Daily Update -White Mesa Mill 01/27/11 Cell 4A Elevation Observation 01 27 11 (2).pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (303) 389-4132 f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Saturday, January 29, 2011 4:22 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level Daily Update -White Mesa Mill 01/29/11 CeiL 4A_Elevation_Observation_01_29_11.xlsx Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2011. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director) Compliance and Permitting t: (303) 389-4132 I f: (303) 389-4125 1050 17th Street, Suite 950, Denver, CO 80265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Sunday, January 30, 2011 2:07 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell4A Liquid Level Daily Update -White Mesa Mill 01/30/11 Cell_ 4A_Elevation_Observation_01_30_11.xlsx Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2ell. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (3e3) 389-4132 f: (3e3) 389-4125 leSe 17th Street, Suite 9Se, Denver, CO 8e26S DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Kathy Weinel From: Sent: To: Cc: Subject: Attachments: Jo Ann Tischler Monday, January 31, 2011 3:09 PM Rusty Lundberg Loren Morton; Harold Roberts; David Frydenlund; David Turk; Ron Hochstein; Kathy Weinel; Meredith Goble; Richard Bartlett RE: Cell 4A Liquid Level Daily Update -White Mesa Mill 01/31/11 Cell 4A Elevation Observation 01 31 11 .pdf Attached please find Denison Mines (USA) Corp.'s daily update of the tailings Cell 4A liquid level as required by Utah Division of Radiation Control's letter of January 13, 2811. Please contact me if you have any questions regarding this transmittal. Yours truly, Jo Ann Tischler Director, Compliance and Permitting t: (383) 389-4132 f: (303) 389-4125 1058 17th Street, Suite 950, Denver, CO 88265 DENISON MINES (USA) CORP www.denisonmines.com This e-mail is intended for the exclusive use of the person(s) mentioned as the recipient(s). This message and any attached files with it are confidential and may contain privileged or proprietary information. If you are not the intended recipient(s) please delete this message and notify the sender. You may not use, distribute print or copy this message if you are not the intended recipient(s). 1 Jo Ann Tischler From: Sent: To: Cc: Subject: Jo Ann Tischler Tuesday, February 01, 2011 2:22 PM Rusty Lundberg; Loren Morton David Frydenlund; Harold Roberts; David Turk; Ryan Palmer White Mesa Mill Daily Cell 4A Liquid Measurements and Variance on Cell 4A Freeboard Limit. In response to Utah Division of Radiation Control's (ilDRe's") letter of January 13, 2011, providing conditional approval of a variance to the Cell 4A wastewater freeboard limit, Denison Mines (USA) Corp. has been measuring and transmitting daily to DRC the liquid pool elevation in Cell 4A. Denison has received ORe's letter of January 20,2011 approving revisions to the Discharge Minimization Technology (DMT") Monitoring Plan contingent upon authorization to use Cell 4B, and received written authorization from DRC on January 31,2011 for use of tailings Cell 4B. As stated in the newly approved DMT Plan, Section 6.3.4, the freeboard limit for Cell 4A is currently inapplicable since all of the PMP volume associated with Cell 4A will be attributed to Cell 4B, which is now in service. Denison, therefore, does not plan to send to DRC any additional daily data on the liquid pool elevation in Cell 4A, and requests that you confirm our understanding that the daily Cell 4A liquid level data is no longer required. Yours truly, Jo Ann Tischler 1 Attachment C MONTHLY HEAD MEASUREMENT TEST January-ll Location: Date: 1/21/2011 Slimes Cell # 2 Sampler: Tanner Holliday Garrin Palmer, Ryan Schierman 1/17/2011 1/18/2011 1/19/2011 1/20/2011 1/21/2011 600 700 16.15 15.10 14.13 13.74 13.15 800 16.09 15.08 14.13 13.73 13.15 900 16.03 15.06 14.12 13.73 13.15 1000 15.98 15.04 14.05 13.72 1100 15.92 15.00 14.03 13.69 1200 15.86 14.95 14.00 13.67 1300 15.79 14.89 13.96 13.64 1400 15.73 14.84 13.92 13.59 1500 15.69 14.80 13.90 13.55 1600 All measurements are in inches. Comments: Report number is 13.15 for the month of January. The tested started with a partialy recovered head because there was an unplanned power loss to the tailings area over the weekend which allowed the head to recover for a day and a half to two days before the monthly head recovery test was started. they continue to have some problems with the power supply out on the tailings area. We may continue to see some problems with the slimes drain on Cell 2 until these issues are resolved. MONTHLY HEAD MEASUREMENT TEST Location: Date: 2/28/2011 Slimes Cell # 2 Sampler: Tanner Holliday Garrin Palmer 2/21/2011 2/22/2011 2/23/2011 2/24/2011 2/25/2011 2/28/2011 600 700 14.7 12.73 800 14.59 12.7 11.8 11.82 900 14.47 12.63 11.79 11.2 1000 14.35 12.6 11.77 11.18 1100 14.22 12.56 11.73 11.18 1200 14.1 12.5 11.69 11.15 1300 13.96 12.44 11.65 11.11 1400 13.87 12.38 11.63 11.03 1500 24.85 13.77 12.32 11.6 10.99 1600 All Measurements are in inches. Comments: Test got started late on th 21st and ran over the weekend. The stable readings were taken the following Monday morning on the 28th. The number being used as stable head for the report is 10.42 feet. 10.42 10.42 10.42 MONTHLY HEAD MEASUREMENT TEST Location: Date: 3/18/2011 Slimes Cell # 2 Sampler: Tanner Holliday Garrin Palmer 3/14/2011 3/15/2011 3/16/2011 3/17/2011 3/18/2011 600 700 14.45 12.61 11.76 11.32 800 24.75 14.31 12.56 11.73 11.31 900 23.25 14.19 12.53 11.71 11.31 1000 22.31 14.05 12.50 11.69 11.31 1100 21.21 13.92 12.46 11.66 1200 20.68 13.82 12.42 11.64 1300 19.78 13.72 12.36 11.62 1400 19.25 13.61 12.30 11.60 1500 18.76 13.53 12.22 11.52 1600 All measurements are in inches. Comments: The report number for the month of March is 11.31 Attachment D n tD N '" --. 3 tD '" C .... OJ -. ~ N o o \D .. N o ....,a. o 20 N o ....,a. ....,a. + V> r1) ., ~" I-' c: ::::l r1) OJ ..., Vi" ro .... iii" '" .!:::! I-' en ~ I-' N Feet Below Top of Standpipe I-' o 00 en .j:>. N 0 1/30/2009 2/28/2009 3/31/2009 4/30/2009 -5/31/2009 6/30/2009 7/31/2009 8/31/2009 9/30/2009 10/31/2009 11/30/2009 12/31/2009 1/31/2010 2/28/2010 3/31/2010 4/30/2010 5/31/2010 6/30/2010 7/31/2010 8/31/2010 9/30/2010 10/31/2010 11/30/2010 -12/31/2010 1/31/2011 2/28/2011 3/31/2011 4/30/2011 Attachment E This attaclunent has been deliberately left blank. Attachment F January 2011 Date 1/7/11 1/14/11 1/21/11 1/28/11 Cell 4A LOS Monitoring Information Measurements in inches from transducer at the bottom of the LDS sump. 6.3 7.7 7.7 7.5 Flow Meter in Gallons 260850 260850 261300 261300 Highest level for the month was 8.7 inches and the lowest level for the month was 4.3 inches. Total number of gallons pumped was 450. February 2011 Date 2/4/11 2/11/11 2/18/11 2/25/11 Measurements in inches from transducer at the bottom of the LDS sump. 6.6 8.9 8.9 7.6 Flow Meter in Gallons 264010 264010 264010 264010 Highest level for the month was 9.6 inches and the lowest level for the month was 5.2 inches. Total number of gallons pumped was 2710. March 2011 Date 3/4/11 3/11/11 3/18/11 3/25/11 Measurements in inches from transducer at the bottom of the LOS sump. 6.1 4.0 4.4 5.4 Flow Meter in Gallons 264010 264010 264010 264010 Highest level for the month was 6.8 inches and the lowest level for the month was 2.2 inches. Total number of gallons pumped was O. For the 1st Quarter 2011, the highest level was 9.6 inches and the lowest level was 2.2 inches. A total of 3160 gallons were pumped. January 2011 Date 1/7/11 1/14/11 1/21/11 1/28/11 Cell 48 LOS Monitoring Information Measurements in inches from transducer at the bottom of the lOS sump. Flow Meter in Gallons The Executive Secretary letter dated January 27, 2011 authorized the use of Cell 4B. The Cell 4B lOS was not monitored until the authorization for use was received. No measurements were taken in January 2011. February 2011 Date 2/4/11 2/11/11 2/18/11 2/25/11 Measurements in inches from transducer at the bottom of the LOS sump. 3.8 11.0 10.5 6.6 Flow Meter in Gallons o 70195 121290 195680 Highest level for the month was 14.7 inches and the lowest level for the month was 3.8 inches. Total number of gallons pumped was 195,680. March 2011 Date 3/4/11 3/11/11 3/18/11 3/25/11 Measurements in inches from transducer at the bottom of the LDS sump. 13.0 6.0 9.9 11.3 266932 293740 302087 310433 Highest level for the month was 13.8 inches and the lowest level for the month was 2.4 inches. Total number of gallons pumped was 114,753. For the 1st Quarter 2011, the highest level was 14.6 inches and the lowest level was 2.4 inches. A total of 310,433 gallons were pumped. Geosyntec Consultants Table lA Calcufated Action Laskaae Rates for Various Head CondItions Cen 4A, White Mesa Mill Blandin., Utah Head Above Uner QJcUIII8d AclJon l.Hbp RIIte System (feet) (pRant/acre/day) 5 222.04 10 314.0 15 384.58 20 444.08 25 496.5 30 543.88 35 587.5 37 604.0 Geosyntec Consultants Tible 1B Calculated ActIon Leakage Rates for VarIous Head CondltTons CeIl4B, White Mesa Mill B/andln&, Utah Head Above Uner System Circulated Action Ltafclp Rate (f.t) (alflanl'lctll/dayt 5 211.4 10 317.0 15 369.9 20 422.7 25 475.6 30 528.4 3S 570.0 37 581.2 Attachment G This attachment has been deliberately left blank.