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HomeMy WebLinkAboutDRC-2012-002552 - 0901a06880339543DRC-2012-002552 ENERGYFUELS Energy Fuels Resources (USA) Inc 225 Union Blvd Suite 600 Lakewood. CO, US, 80228 303 974 2140 www energyfuels com VIA EMAIL AND OVERNIGHT DELIVERY December 19,2012 Mr Rusty Lundberg Director of the Utah Division of Radiation Control State of Utah Department of Environmental Quality 195 North 1950 West P O Box 144850 Salt Lake City, UT 84116-4850 2012 Re: White Mesa Mill State of Utah Radioactive Material License No. UT 1900479 Response to Letter of November 29,2012 Report Justifying Additional Volume of Excavation at Former Claricone Site (Response) Request for Information Dear Mr Lundberg: This letter responds to the Division of Radiation Control's ("DRC's) above-named Request for Information of November 15, 2012, which EFRI received on November 19, 2012 regarding EFRI's October 26, 2012 Response Letter and Summary Report Justifying Additional Volume of Excavation for Claricone (the "Response Letter and Summary Report"). DRC's comments are reproduced verbatim, below, followed by EFRI's response For ease of review, a revised version of the Summary Report, with changes indicated in redline/stnkeout format, is enclosed, along with a clean copy ofthe report DRC Comment' 1 While the plan concept looks appropriate, the map provides little detail to assure that excavation occurs where intended Decommissioning activities will likely result in removal of structures and other permanent landmarks prior to performing the excavation To correct this situation, please provide either coordinates or a boundary description for the proposed excavation site Tie the coordinates or boundary to known USGS survey monumentation EFRI Response EFRI used the Mill's handheld GPS survey instrument to locate survey coordinates (latitude and longitude) for nine points around the perimeter of the previously completed excavation The coordinates are based on the NADA 83 coordinate system Mr Russ Topham of DRC advised EFRI m a phone discussion on December 12, 2012, that this method is acceptable to DRC The attached revisions to the Letfer to Rusty Lundberg December 19,2012 Page2of 11 figure in Attachment 2B of the Revised Summary Report provide the survey coordinates for each of the nine points DRC Comment: 2 Decommissioning activities near the excavation site will likely result in disturbance ofthe ground surface To assure that the excavation reaches the proper depth, please provide the elevation above mean sea level for the excavation floor Tie this elevation to USGS monumentation EFRI Response- EFRI determined the cunent surface elevation by survey coordinated to the USGS survey monument number MILL 101 (near the Mill's Cell 1) Based on the survey from this monument, the surface elevation of the clean backfill at the former Claricone area is 5625 49 feet amsl As discussed in the Revised Summary Report, the bottom of the previously completed excavation, was 25 feet below the ground surface, (or 5600 49 feet amsl). The bottom of the proposed excavation will be 27 feet below ground surface (or 5598 49 feet amsl) DRC Comment 3 The portion of the Response devoted to justifying the quantity of earth to be moved did not consider the possibility that workers may need to follow contamination outside the intended limits of excavation Please adjust the Response to reflect this consideration If necessary, please adjust the volume of new fill required EFRI Response' EFRI has provided a revised version of the Summary Report entitled Proposed Excavation at Mill Decommissioning to Remove Potentially Contaminated Soil, which was imtially submitted on October 26, 2012 As discussed in the Revised Summary Report, EFRI agrees to excavate additional soil volume as follows* EFRI proposes to excavate an additional two feet in every direction (around the penmeter and below the bottom of the existing excavation). The excavation of an additional two feet in each direction will result in an estimated 1,000 cubic yards of potentially contaminated soil to be excavated The proposed excavation v^ll require the removal of the 4,600 cubic yards of clean backfill in order to reach the additional two feet of potentially contaminated soil around the perimeter and bottom of the former excavation. The removed 4,600 cubic yards would theoretically be set aside for reuse in refilling the excavation, and would not need to be placed in the tailings area For conservatism, the cost estimate has assumed that up to 2,000 cubic yards of the 4,600 removed clean fill could potentially be contaminated and would also be disposed in the tailings system rather than replaced in the excavation as backfill. Lettfer to Rusty Lundberg December 19,2012 Page 3 of 11 In response to DRC Comment 3, above, we also agree to add an additional estimated volume of 1,000 cubic yards to address the possibility that additional contamination potentially extended outside the proposed 2-foot penmeter excavation The above addition for theoretically-contaminated soil inside and outside the 2-foot perimeter excavation comprise an additional 3,000 cubic yards of soil to be excavated Therefore, the volume estimate of disposed contaminated soils has been increased to 4,000 cubic yards, quadruple the volume mdicated by the proposed 2-foot penmeter. The enclosed revised Summary Report reflects these proposed changes in redline. The White Mesa Mill Reclamation Cost Estimate has been modified to reflect the increased excavation volume discussed above. If you have any questions, please contact me at (303) 389-4132 Yours very truly. ENERGY FUELS RESOURCES (USA) INC. Jo Ann Tischler Director, Compliance cc David C Frydenlund Phihp Goble Dan Hillsten Harold R Roberts Tom Rushing David E Turk Kathy Weinel Attachments Redline Letffer to Rusty Lundberg December 19,2012 Page 4 of 11 REVISED SUMMARY REPORT PROPOSED EXCAVATION AT MILL DECOMISSIONING TO REMOVE POTENTIALLY CONTAMINATED ADDITIONAL SOIL Description of Previous Excavation A sketch of the White Mesa Mill process area indicating the approximate location and boundaries of the April 2012 Claricone excavation are provided m Attachment 2A Contaminated equipment, process matenal, and soil was disposed m Cell 3 As described in the May 4, 2012 Notice and Plan, after removal of Claricone equipment, associated structures, and the pumpable portion of the spilled solutions, the April 2012 Claricone excavation was conducted as follows The extent of soil removal addressed both chemical and radiological contamination All soils visibly wet, stained or discolored were excavated until uncontammated dry background soils remained The bottom and sides of the excavation were scanned by microR meter (measunng residual gamma contamination) When the bottom or sides of the excavation indicate gamma levels greater than background levels, the excavation was resumed, additional contaminated soil was removed, and the bottom and sides ofthe excavation were re-scanned until all surfaces result in gamma levels less than or equal to cleanup background (Cleanup background was defined as two times the average of four measured background readmgs taken as described in Attachment 3 This approach accounted for the contnbution to background of gamma radiation from other nearby process equipment such as the clanfier, thickener, and CCD impounds ) When the bottom and sides of the excavation indicated gamma levels of less than cleanup background as defined above, the excavation was considered complete, and the area was prepared for backfill and re-grading The May 4, 2012 Notice and Plan indicated that the total estimated volume removed from the excavation was 1,134 cubic yards Based on final drawings and the volume of clean replacement soil used to backfill the excavation, the total estunated volume of material actually removed was 4,600 cubic yards as indicated in the figure m Attachment 2B The excavated volume of 4,600 cubic yards was subsequently replaced with clean backfill Conservative Basis for Larger Excavation Volume The previously completed excavation attempted to locate and remove all contaminants discharged dunng the Clancone spill by 1 Removal of all material visibly stained or wet Any soil apparently wet, containmg visible spilled material (crystals, precipitates, lumps), discolored, or having an otherwise non-typical appearance, was excavated 2 Removal of radionuclides based on delineation by gamma detection A gamma survey was considered to be suitable because the spilled Claricone solutions contained appreciable concentrations of gamma- emittmg radionuclides 3 Assumption that chemical constituents would be removed by removal of detectable radionuclides The Clancone contained saturated solutions undergoing solid/liquid separation for recovery of solid constituents, and did not contain gaseous or volatile constituents that would not be detected by either visual examination or radiological scanning Although the transport of chemical constituents m environmental media may differ substantially from the transport of those constituents identifiable by Letfer to Rusty Lundberg December 19,2012 Page 5 of 11 radiological scannmg, it was assumed that chemical constituents would be captured because the very short duration between the Claricone spill and the completion of the removal action (15 days total) would not allow for any appreciable migration of chemical constituents The areal footprint of the excavation was determined by assuming the entire area up to adjacent equipment in every direction around the 29 foot diameter Clancone would be removed As indicated in Attachment 2B, an area approximately 56 feet in its narrowest dimension and 80 feet m its longest dimension was excavated After removal of all the visibly contaminated soil, the depth of the excavation was determined by locating the deepest depth below ground surface at which any radiological (gamma) detection exceeded the background determined as described above The entire footprint was then excavated to that maximum depth The excavation was completed to a depth of 25 feet below ground surface ("bgs") across the entire footpnnt Nonetheless, dunng discussions with DRC in August 2012, DRC indicated concem that due to the lack of confirmatory radiological sampling, the gamma survey method may not have bounded the entire extent of the contamination Although EFRI believes that the contamination has been removed in its entirety, EFRI agreed to assess an additional area and depth that could be excavated at the time of Mill decommissioning, as an extra measure of conservatism Justification for Calculated Soil Volume Although EFRI believes the contamination has been removed, EFRI has agreed to removal of an additional soil volume as indicated in Attachment 2B EFRI proposes to excavate an additional two feet in every direction (around the penmeter and below the bottom of the existing excavation) The excavation of additional two feet in each direction will result in an estimated 1,000 cubic yards of potentially contaminated soil to be excavated For the purposes of developing a conservative estimate of additional cost for the reclamation surety, EFRI has tn^led-quadrupled the excavation volume from 1,000 to ^;QOQ4.000 cubic yards for the cost calculations for the reasons discussed herein The proposed excavation will require the removal of the 4,600 cubic yards of clean backfill m order to reach the additional two feet of potentially contammated soil around the perimeter and bottom of the former excavation The removed 4,600 cubic yards would theoretically be set aside for reuse in refilling the excavation, and would not need to be placed in the tailings area For conservatism, the cost estimate has assumed that up to 2,000 cubic yards of the 4,600 removed clean fill could potentially be contaminated and would also be disposed in the tailings system rather than replaced m the excavation as backfill In order to address the possibility that workers may need to remove some additional contamination outside the intended two feet excavation penmeter as drawn m the figure in Attachment 2B. the volume estimate assumes an additional 1.000 cubic yards may potentially be excavated outside the proposed perimeter Since the presence of any theoretical contamination outside the perimeter has not been demonstrated, a precise location for the removal ofthe additional 1.000 cubic yards has not been drawn on the figure Therefore, the volume estunate of disposed contaminated soils has been tripled from 1,000 to ^70004.000 cubic yards Letter to Rusty Lundberg December 19,2012 Page 6 of 11 Surface Map and Cross Sections As mentioned above, a surface map of the Mill mdicating the area of the proposed additional Clancone excavation is provided in Attachment 2A A detail of the proposed excavation area is provided in Attachment 2B The removal resulted m an excavation with a flat floor at 25 feet bgs and vertical sidewalls throughout the "hole" Based on information from well logs at the nearest wells (MW-27, TWN-2, and TW4-25), the top of the low permeability Mancos shale in the vicinity of the excavation varies from less than 5 feet to approximately 9 or more feet The top of the lower permeability Dakota sandstone vanes from approximately 16 feet to over 27 feet EFRI agrees to perform the additional excavation at the time of decommissioning consistent with the previously completed excavation, that is, to excavate a vertical-walled flat bottomed excavation 2 feet wider in each dimension than the completed and backfilled excavation Excavated soil would be disposed in the tailings cells Surefy Estimate A revised surety estimate including line items for work associated with excavation, removal and disposal of the additional volume of soil to be removed is provided in Attachment 3 As discussed above, for conservatism, the revised surety estimate assumes triple the 1,000 cubic yard volume indicated in the drawings, that is it assumes a 3,000 cubic yard additional excavation The assumption of an additional 3,000 cubic yard excavation resulted in an additional line item under the Mill Decommissioning costs entitled "Claricone Contaminated Soil Disposal" of $6,937 This addition to the surety estimate results in a revised total surety estunate of $20,309,858 Letter to Rusty Lundberg December 19,2012 Page 7 of 11 ATTACHMENT 1 Letter to Rusty Lundberg December 19,2012 Page 8 of 11 ATTACHMENT ISA Location of Former Claricone Area c g 4-» CD > CD U X 0) vt_ ro O E £• 3< JS o o o ro •o c (U 00 OJ ^1 i I s I C CU E SI u CD CU c o u JD u cu E c g CD U O T3 C CD CD CU to to CU U o Letter to Rusty Lundberg December 19,2012 Page 9 of 11 ATTACHMENT i2B Mill Decommissioning Planned Soil Removal m Claricone Area NOTES • 4,600 cuyds of soil was removed at the time of the removal of the Claricone • The excavation proposed at the time of mill decomission totals 1,000 cuyds • The proposed area includes a two foot extension to the boundary of previously excavated soils • The surface elevation is taken as 5625 5 ft above msl as referenced from mill survey monument MILL 101 ISIONS By Project Clancone Excavation Project County Location San Juan County State Utah White Mesa Mill Mill Decommissioning Planned Soils Removal in Clancone Area ss 10/4/12 Drafted By gg Letter to Rusty Lundberg December 19,2012 Page 10 of 11 ATTACHMENT iSC Cross Sectional Dimensions of Claricone Excavation ATTACHMENT 12C CROSS SECTIONAL DIMENSIONS OF CLARICONE EXCAVATION The Apnl 2012 excavation of contaminated and additional soil associated with the Claricone spill consisted of an excavation footprint as shown in the plan drawing in Attachment liB, with • Excavation to a flat bottom depth of 25 feet below ground surface ("bgs ") all the way across the blue hatched area of excavation, and • Approximately vertical side walls around the entire penmeter as indicated by the blue hatched area in Attachment liB The proposed excavation of potentially-contaminated additional soil at Mill decommissioning would consist of • Excavation to a flat bottom depth of an additional 2 feet, that is 27 feet bgs, all the way across the area of excavation, and • A perimeter of an additional two foct2-foot width as indicated by the red hatched area in Attachment 12B, with approximately vertical side walls • Potential excavation of an additional 1.000 cubic vards of soil contamination theoreticaiiv outside the proposed 2-foot width The location of this volume has not been depicted in Attachment IB Letfer to Rusty Lundberg December 19, 2012 Page 11 of 11 ATTACHMENT 2^ Reclamation Cost Estimate Revision 4 12 WHITE MESA MILL RECLAMATION COST ESTIMATE December 2012 Revision 4.12 Mobilization $437,800 Office Facilities $58,500 Mill Decommissioning $2,139,409 CelM $1,776,448 Cell 2 $1,803,668 Cell 3 $2,057,848 Ceil 4A $1,435,844 Cell 4B $1,465,011 Management Support $2,297,613 Miscellaneous $869,063 Subtotal Direct Costs $14,341,205 Profit Allowance 10 00% $1,434,120 Contingency 15 00% $2,151,181 Licensing & Bonding 2 00% $286,824 UDEQ Contract Administration 4 00% $573,648 Engineenng Design Review 2 25% $322,677 Contractors Equipment Floater $82,250 Automobile and General Liability Insurance $284,600 Long Term Care Fund $833,353 Total Reclamation $20,309,858 Revised Bond Amount $20,309,858 12/17/2012 -11 07 AM - WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING MILL DECOMMISSIONING Mill Building Demolition Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Mill Building Demolition hrs $15 03 640 $9,618 hrs $15 25 320 $4,879 hrs $1 35 960 $1,296 hrs $97 66 640 $62,501 hrs $21 51 640 $13,768 hrs $137 94 160 $22,071 hrs $25 75 160 $4,120 hrs $133 91 160 $21,425 hrs $27 26 160 $4,362 hrs $154 00 160 $24,639 hrs $27 26 160 $4,362 hrs $97 93 160 $15,668 hrs $28 41 160 $4,545 hrs $62 40 80 $4,992 hrs $28 41 80 $2,273 hrs $1910 1,360 $25,974 sf $3 30 37,500 $123,750 $350,244 Ore Feed Demolition Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Total Ore Feed Demolition hrs $15 03 64 $962 hrs $15 25 32 $488 hrs $1 35 96 $130 hrs $97 66 64 $6,250 hrs $21 51 64 $1,377 hrs $137 94 16 $2,207 hrs $1721 16 $275 hrs $133 91 16 $2,143 hrs $20 65 16 $330 hrs $154 00 16 $2,464 hrs $20 65 16 $330 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $19 10 112 $2,139 $19,095 SX Building Demolition Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total SX Building Demolition 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 hrs $15 03 320 $4,809 hrs $15 25 160 $2,439 hrs $1 35 480 $648 hrs $97 66 320 $31,251 hrs $21 51 320 $6,884 hrs $137 94 80 $11,035 hrs $25 75 80 $2,060 hrs $133 91 80 $10,713 hrs $27 26 80 $2,181 hrs $154 00 80 $12,320 hrs $27 26 80 $2,181 hrs $97 93 0 $0 hrs $28 41 0 $0 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $19 10 560 $10,695 sf $3 30 55,970 $184,701 $281,917 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING CCD Circuit Removal Resource Descnption Units Cost/Unit Task Units Task Cost hrs $15 03 120 $1,803 hrs $15 25 60 $915 hrs $1 35 180 $243 hrs $97 66 120 $11,719 hrs $21 51 120 $2,582 hrs $137 94 30 $4,138 hrs $1721 30 $516 hrs $133 91 30 $4,017 hrs $20 65 30 $620 hrs $154 00 30 $4,620 hrs $20 65 30 $620 hrs $97 93 30 $2,938 hrs $15 76 30 $473 hrs $62 40 15 $936 hrs $15 76 15 $236 hrs $19 10 255 $4,870 sf $3 30 15,000 $49,500 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total CCD Circuit Removal $90,746 Sample Plant Removal Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Sample Plant Removal hrs $15 03 32 $481 hrs $15 25 16 $244 hrs $1 35 48 $65 hrs $97 66 32 $3,125 hrs $21 51 32 $688 hrs $137 94 8 $1,104 hrs $1721 8 $138 hrs $133 91 8 $1,071 hrs $20 65 8 $165 hrs $154 00 8 $1,232 hrs $20 65 8 $165 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $19 10 56 $1,070 sf $3 30 4,200 $13,860 $23,408 Temporary Storage Building Removal Resource Descnption Units Cost/Unit Task Units Task Cost hrs $15 25 8 $122 hrs $1 35 8 $11 hrs $97 66 2 $195 hrs $21 51 2 $43 hrs $137 94 2 $276 hrs $25 75 2 $52 hrs $19 10 4 $76 sf $3 30 600 $1,980 Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Equipment Maintenance (Butler) Concrete Removal Total Temporary Storage Building Removal $2,755 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Truck Shop Removal Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Truck Shop Removal Boiler Demolition Resource Descnption Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Boiler Demolition hrs $15 03 32 $481 hrs $15 25 16 $244 hrs $1 35 48 $65 hrs $97 66 24 $2,344 hrs $21 51 24 $516 hrs $137 94 8 $1,104 hrs $1721 8 $138 hrs $133 91 8 $1,071 hrs $20 65 8 $165 hrs $154 00 8 $1,232 hrs $20 65 8 $165 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $19 10 48 $917 sf $3 30 4,200 $13,860 Units Cost/Unit Task Units $22,301 Task Cost hrs $15 03 160 $2,405 hrs $15 25 80 $1,220 hrs $1 35 240 $324 hrs $97 66 160 $15,625 hrs $21 51 160 $3,442 hrs $137 94 40 $5,518 hrs $17 21 40 $689 hrs $133 91 40 $5,356 hrs $20 65 40 $826 hrs $154 00 40 $6,160 hrs $20 65 40 $826 hrs $97 93 0 $0 hrs $15 76 0 $0 hrs $62 40 0 $0 hrs $15 76 0 $0 hrs $19 10 280 $5,348 sf $3 30 2,900 $9,570 $57,308 Vanadium Oxidation Circuit Removal Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Vanadium Oxidation Circuit Removal 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 hrs $15 03 64 $962 hrs $15 25 32 $488 hrs $1 35 96 $130 hrs $97 66 64 $6,250 hrs $21 51 64 $1,377 hrs $137 94 16 $2,207 hrs $1721 16 $275 hrs $133 91 16 $2,143 hrs $20 65 16 $330 hrs $154 00 16 $2,464 hrs $20 65 16 $330 hrs $97 93 0 $0 hrs $15 76 0 $0 hrs $62 40 0 $0 hrs $15 76 0 $0 hrs $19 10 112 $2,139 sf $3 30 1,200 $3,960 $23,055 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Mam Shop/Warehouse Demolition Resource Descnption Units Cost/Unit Task Units Task Cost hrs $15 03 128 $1,924 hrs $15 25 64 $976 hrs $1 35 192 $259 hrs $97 66 128 $12,500 hrs $21 51 128 $2,754 hrs $137 94 32 $4,414 hrs $1721 32 $551 hrs $133 91 32 $4,285 hrs $20 65 32 $661 hrs $154 00 32 $4,928 hrs $20 65 32 $661 hrs $19 10 224 $4,278 sf $3 30 19,300 $63,690 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Mam Shop/Warehouse Demolition $101,880 Decon Pads (2) Demolition Resource Descnption Units Cost/Unit Task Units Task Cost hrs $15 03 64 $962 hrs $15 25 32 $488 hrs $1 35 96 $130 hrs $97 66 64 $6,250 hrs $21 51 64 $1,377 hrs $137 94 16 $2,207 hrs $1721 16 $275 hrs $133 91 16 $2,143 hrs $20 65 16 $330 hrs $154 00 16 $2,464 hrs $20 65 16 $330 hrs $19 10 112 $2,139 sf $3 30 1,350 $4,455 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Decon Pads (2) Demolition $23,550 Office Building Demolition Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Office Building Demolition hrs $15 03 96 $1,443 hrs $15 25 48 $732 hrs $1 35 144 $194 hrs $97 66 96 $9,375 hrs $21 51 96 $2,065 hrs $137 94 24 $3,311 hrs $1721 24 $413 hrs $133 91 24 $3,214 hrs $20 65 24 $496 hrs $154 00 24 $3,696 hrs $20 65 24 $496 hrs $19 10 168 $3,209 sf $1 25 12,100 $15,125 $43,768 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Septic Tanks and Dram Fields Resource Descnption Units Cost/Unit Task Units Task Cost hrs $15 03 0 $0 hrs $15 25 16 $244 hrs $1 35 32 $43 hrs $97 66 16 $1,563 hrs $21 51 16 $344 hrs $137 94 8 $1,104 hrs $1721 8 $138 hrs $133 91 8 $1,071 hrs $20 65 8 $165 hrs $154 00 0 $0 hrs $20 65 0 $0 hrs $19 10 32 $611 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Total Septic Tanks and Dram Fields $5,283 Misc Tankage & Spare Parts Removal Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Total Misc Tankage & Spare Parts Removal hrs $15 03 48 $721 hrs $15 25 24 $366 hrs $1 35 72 $97 hrs $97 66 48 $4,688 hrs $21 51 48 $1,033 hrs $137 94 12 $1,655 hrs $1721 12 $207 hrs $133 91 12 $1,607 hrs $20 65 12 $248 hrs $154 00 12 $1,848 hrs $20 65 12 $248 hrs $19 10 84 $1,604 $14,321 Alternate Feed Circuit and Reagent Storage Building Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal hrs $15 03 50 $751 hrs $15 25 50 $762 hrs $1 35 96 $130 hrs $97 66 50 $4,883 hrs $21 51 50 $1,076 hrs $137 94 34 $4,690 hrs $1721 34 $585 hrs $133 91 34 $4,553 hrs $20 65 34 $702 hrs $154 00 52 $8,008 hrs $20 65 52 $1,074 hrs $19 10 170 $3,247 sf $3 30 3,500 $11,550 Total Alternate Feed Circuit and Reagent Storage Building $42,011 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Mill Yard Decontamination Resource Descnption Units Cost/Unit Task Units Task Cost hrs $215 65 274 $59,087 hrs $27 26 274 $7,470 hrs $137 94 68 $9,380 hrs $25 75 68 $1,751 hrs $98 69 68 $6,711 hrs $25 75 68 $1,751 hrs $83 49 68 $5,677 hrs $25 75 68 $1,751 hrs $115 79 68 $7,874 hrs $23 48 68 $1,597 hrs $73 28 68 $4,983 hrs $27 26 68 $1,854 hrs $19 10 614 $11,727 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Watenwagon Operator Cat 14H Motorgrader Cat 14H Mptorgrader Operator Equipment Maintenance (Butler) Total Mill Yard Decontamination* Ore Storage Pad Decontamination Resource Descnption $121,613 Includes Ammonimum Sulfate Storage Tank contamination Units Cost/Unit Task Units Task Cost hrs $215 65 189 $40,757 hrs $1931 189 $3,649 hrs $137 94 48 $6,621 hrs $1721 48 $826 hrs $98 69 48 $4,737 hrs $20 65 48 $991 hrs $83 49 48 $4,008 hrs $20 65 48 $991 hrs $11579 48 $5,558 hrs $18 16 48 $872 hrs $73 28 48 $3,517 hrs $20 62 48 $990 hrs $19 10 429 $8,193 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Waterwagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Ore Storage Pad Decontamination $81,712 Equipment Storage Area Cleanup Resource Descnption Units Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Equipment Storage Area Cleanup hrs $215 65 68 $14,664 hrs $19 31 68 $1,313 hrs $137 94 17 $2,345 hrs $1721 17 $293 hrs $98 69 17 $1,678 hrs $20 65 17 $351 hrs $83 49 17 $1,419 hrs $20 65 17 $351 hrs $115 79 17 $1,968 hrs $18 16 17 $309 hrs $73 28 17 $1,246 hrs $20 62 17 $351 hrs $19 10 153 $2,922 $29,210 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Revegetate Mill Yard & Ore Pad Resource Descnption Units Cost/Unit Task Units Task Cost hrs $215 65 174 $37,523 hrs $19 31 174 $3,360 hrs $137 94 0 $0 hrs $1721 0 $0 hrs $98 69 33 $3,257 hrs $20 65 33 $682 hrs $83 49 33 $2,755 hrs $20 65 33 $682 hrs $115 79 0 $0 hrs $18 16 0 $0 hrs $73 28 33 $2,418 hrs $20 62 33 $681 Acre $322 50 50 $16,125 hrs $19 10 273 $5,214 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Seed MIX Equipment Maintenance (Butler) Total Revegetate Mill Yard & Ore Pad Total Demolition and Decontamination $72,695 $1,406,8711 CLEANUP OF WINDBLOWN CONTAMINATION Scoping Survey Resource Descnption Units Cost/Unit Task Units Task Cost Soil Samples each $50 00 100 $5,000 Survey Crew hrs $14 46 752 $10,877 Sample Crew hrs $14 46 1,312 $18,977 Total Scoping Survey $34,854 Charactenzation Survey Resource Descnption Units Cost/Unit Task Units Task Cost Soil Samples each $50 00 472 $23,600 Sample Crew hrs $14 46 1,136 $16,431 Total Charactenzation Survey $40,031 Final Status Survey Resource Descnption Units Cost/Unit Task Units Task Cost Soil Samples each $50 00 300 $15,000 Sample Crew hrs $14 46 3,552 $51,377 Total Final Status Survey $66,377 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Clancone Contaminated Soil Disposal Resource Description Cat 770 Haul Truck (3) Truck Dnvers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Units Cost/Unit Task Units Task Cost hrs $97 66 20 $1,993 hrs $21 51 20 $439 hrs $137 94 7 $938 hrs $25 75 7 $175 hrs $115 79 7 $788 hrs $23 48 7 $160 hrs $73 28 15 $1,099 hrs $27 26 15 $409 hrs $19 10 49 $936 Total Clancone Contaminated Soil Disposal $6,937 Total Quantity 4.000 Cubic Yards* ' 196 Cubic Yards per Truck per hour 20 Truck Hours *Use 4 times estimated volume Loose (in-truck) matenal unit weight assumed as 100 Ib/cubic foot 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Alternate Feed Disposal Cabot and FMRI Matenal Resource Description Units Cost/Unit Task Units Task Cost Cat 770 Haul Truck (3) hrs $97 66 33 $3,178 Truck Dnvers (3) hrs $21 51 33 $700 Cat 988 Loader hrs $137 94 11 $1,496 Cat 988 Loader Operator hrs $25 75 11 $279 Cat 651 Watenvagon hrs $115 79 11 $1,256 Cat 651 Watenvagon Operator hrs $23 48 11 $255 Cat 14H Motorgrader hrs $73 28 6 $440 Cat 14H Motorgrader Operator hrs $27 26 6 $164 Equipment Maintenance (Butler) hrs $19 10 60 $1,150 Total Cabot & FMRI Matenal $8,919 Total Quantity 6.379 Cubic Yards* (projected to 03/01/2013) 196 Cubic Yards per Truck per hour 33 Truck Hours * Includes Cabot and FMRI Cameco Barrels and Honeywell Barrels Resource Descnption Units Cost/Unit Task Units Task Cost Equipment Operators hrs $21 51 70 $1,510 Flat Bed Trailer and Tractor* hrs $55 00 70 $3,861 Fork Lift (2) hrs $18 00 140 $2,527 Equipment Maintenance (Butler) hrs $19 10 70 $1,341 Total Cameco and honeywell Barrels $9,240 * includes operator 7.020 Barrels (projected to 03/01/2013) 40 Barrels per load 0 4 Hours per load 70 Truck Hours Tons lbs per barrel No Drums CaF2 979 727 2,692 Calcined 435 320 2,719 Regen 31 406 153 KF 224 309 1,450 UF4 2 547 7 1.671 7,020 Sub-Total Alternate Feed Disposal TOTAL MILL DECOMMISSIONING 1 $18.158] I $2,139,4091 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill Clean Page 1 of7 REVISED SUMMARY REPORT PROPOSED EXCAVATION AT MILL DECOMISSIONING TO REMOVE POTENTIALLY CONTAMINATED ADDITIONAL SOIL Description of Previous Excavation A sketch of the White Mesa Mill process area indicating the approximate location and boundanes of the April 2012 Claricone excavation are provided m Attachment 2A Contammated equipment, process matenal, and soil was disposed in Cell 3 As described in the May 4, 2012 Notice and Plan, after removal of Clancone equipment, associated structures, and the pumpable portion of the spilled solutions, the April 2012 Clancone excavation was conducted as follows The extent of soil removal addressed both chemical and radiological contamination All soils visibly wet, stained or discolored were excavated until uncontaminated dry background soils remained The bottom and sides of the excavation were scanned by microR meter (measuring residual gamma contamination) When the bottom or sides of the excavation mdicate gamma levels greater than background levels, the excavation was resumed, additional contaminated soil was removed, and the bottom and sides of the excavation were re-scanned until all surfaces result in gamma levels less than or equal to cleanup background (Cleanup background was defined as two times the average of four measured background readings taken as described m Attachment 3 This approach accounted for the contnbution to background of gamma radiation from other nearby process equipment such as the clanfier, thickener, and CCD impounds ) When the bottom and sides of the excavation indicated gamma levels of less than cleanup background as defined above, the excavation was considered complete, and the area was prepared for backfill and re-grading The May 4, 2012 Notice and Plan mdicated that the total estimated volume removed from the excavation was 1,134 cubic yards Based on final drawings and the volume of clean replacement soil used to backfill the excavation, the total estimated volume of material actually removed was 4,600 cubic yards as indicated in the figure in Attachment 2B The excavated volume of 4,600 cubic yards was subsequently replaced with clean backfill Conservative Basis for Larger Excavation Volume The previously completed excavation attempted to locate and remove all contaminants discharged during the Clancone spill by 1 Removal of all material visibly stained or wet Any soil apparently wet, containing visible spilled material (crystals, precipitates, lumps), discolored, or having an otherwise non-typical appearance, was excavated 2 Removal of radionuclides based on delmeation by gamma detection A gamma survey was considered to be suitable because the spilled Clancone solutions contained appreciable concentrations of gamma- emitting radionuclides 3 Assumption that chemical constituents would be removed by removal of detectable radionuclides The Clancone contained saturated solutions undergoing solid/liquid separation for recovery of solid constituents, and did not contain gaseous or volatile constituents that would not be detected by either visual examination or radiological scanning Although the transport of chemical constituents in environmental media may differ substantially from the transport of those constituents identifiable by radiological scanning, it was assumed that chemical constituents would be captured because the very Page 2 of7 short duration between the Clancone spill and the completion of the removal action (15 days total) would not allow for any appreciable migration of chemical constituents The areal footprint of the excavation was determined by assuming the entire area up to adjacent equipment in every direction around the 29 V2 foot diameter Clancone would be removed As indicated in Attachment 2B, an area approximately 56 feet in its narrowest dimension and 80 feet in its longest dunension was excavated After removal of all the visibly contaminated soil, the depth of the excavation was determined by locating the deepest depth below ground surface at which any radiological (gamma) detection exceeded the background determined as described above The entire footprint was then excavated to that maximum depth The excavation was completed to a depth of 25 feet below ground surface ("bgs") across the entire footprint Nonetheless, during discussions with DRC in August 2012, DRC indicated concem that due to the lack of confirmatory radiological sampling, the gamma survey method may not have bounded the entire extent of the contamination Although EFRI believes that the contamination has been removed in its entirety, EFRI agreed to assess an additional area and depth that could be excavated at the time of Mill decommissionmg, as an extra measure of conservatism Justification for Calculated Soil Volume Although EFRI believes the contamination has been removed, EFRI has agreed to removal of an additional soil volume as indicated in Attachment 2B EFRI proposes to excavate an additional two feet in every direction (around the penmeter and below the bottom of the existing excavation) The excavation of additional two feet m each direction will result in an estimated 1,000 cubic yards of potentially contaminated soil to be excavated For the purposes of developing a conservative estimate of additional cost for the reclamation surety, EFRI has quadrupled the excavation volume from 1,000 to 4,000 cubic yards for the cost calculations for the reasons discussed herem The proposed excavation will require the removal of the 4,600 cubic yards of clean backfill m order to reach the additional two feet of potentially contaminated soil around the perimeter and bottom of the former excavation The removed 4,600 cubic yards would theoretically be set aside for reuse in refilling the excavation, and would not need to be placed in the tailings area For conservatism, the cost estimate has assumed that up to 2,000 cubic yards of the 4,600 removed clean fill could potentially be contaminated and would also be disposed m the tailings system rather than replaced in the excavation as backfill In order to address the possibility that workers may need to remove some additional contamination outside the mtended two feet excavation perimeter as drawn m the figure in Attachment 2B, the volume estimate assumes an additional 1,000 cubic yards may potentially be excavated outside the proposed perimeter Since the presence of any theoretical contamination outside the perimeter has not been demonstrated, a precise location for the removal ofthe additional 1,000 cubic yards has not been drawn on the figure Therefore, the volume estunate of disposed contaminated soils has been tripled from 1,000 to 4,000 cubic yards Surface Map and Cross Sections As mentioned above, a surface map of the Mill indicating the area of the proposed additional Clancone excavation is provided in Attachment 2A A detail of the proposed excavation area is provided in Attachment 2B • Pa^e3of7 The removal resulted in an excavation with a flat floor at 25 feet bgs and vertical sidewalls throughout the "hole" Based on information from well logs at the nearest wells (MW-27, TWN-2, and TW4-25), the top of the low permeability Mancos shale in the vicinity of the excavation varies from less than 5 feet to approximately 9 or more feet The top of the lower permeability Dakota sandstone varies from approximately 16 feet to over 27 feet EFRI agrees to perform the additional excavation at the time of decommissioning consistent with the previously completed excavation, that is, to excavate a vertical-walled flat bottomed excavation 2 feet wider in each dimension than the completed and backfilled excavation Excavated soil would be disposed in the tailings cells Surety Estimate A revised surety estimate including line items for work associated with excavation, removal and disposal of the additional volume of soil to be removed is provided in Attachment 3 As discussed above, for conservatism, the revised surety estimate assumes triple the 1,000 cubic yard volume indicated m the drawings, that is it assumes a 3,000 cubic yard additional excavation The assumption of an additional 3,000 cubic yard excavation resulted in an additional line item under the Mill Decommissioning costs entitled "Claricone Contaminated Soil Disposal" of $6,937 This addition to the surety estimate results in a revised total surety estimate of $20,309,858 Pag^4of7 ATTACHMENT lA Location of Former Claricone Area •a c (U 00 (U HO c E ^ 2J 2 o -D 8 5 Q- = i i 8 < ^ £ U c o 4-» CD > CD U X LU CU c o u JD u cu rH i- 4^ O C ^ CU ^ E ° JZ u CD c o CD U O _l C CD CD CU to to CU u O .S- 4 Page 5 of7 ATTACHMENT IB Mill Decommissioning Planned Soil Removal m Claricone Area ROBEF NOTES • 4,600 cuyds of soil was removed at the time of the removal of the Claricone • The excavation proposed at the time of mill decomission totals 1,000 cuyds • The proposed area includes a two foot extension to the boundary of previously excavated soils • The surface elevation is taken as 5625 5 ft above msl as referenced from mill survey monument MILL 101 SIONS 1 iSS By Project Clancone Excavation Project County San Juan County | State Utah Location White Mesa Mill Mill Decommissioning Planned Soils Removal in Clancone Area SS 10/4/12 Drafted By gg Page 6 of7 ATTACHMENT IC Cross Sectional Dimensions of Clancone Excavation ATTACHMENT IC CROSS SECTIONAL DIMENSIONS OF CLARICONE EXCAVATION The Apnl 2012 excavation of contaminated and additional soil associated with the Claricone spill consisted of an excavation footpnnt as shown in the plan drawing in Attachment IB, with • Excavation to a flat bottom depth of 25 feet below ground surface ("bgs ") ali the way across the blue hatched area of excavation, and • Approximately vertical side walls around the entire penmeter as mdicated by the blue hatched area in Attachment IB The proposed excavation of potentially-contaminated additional soil at Mill decommissioning would consist of • Excavation to a flat bottom depth of an additional 2 feet, that is 27 feet bgs, all the way across the area of excavation, and • A perimeter of an additional 2-foot width as indicated by the red hatched area in Attachment IB, with approximately vertical side wails • Potential excavation of an additional 1,000 cubic yards of soil contamination theoretically outside the proposed 2-foot width The location ofthis volume has not been depicted in Attachment IB Page 7 of 7 ATTACHMENT 2 Reclamation Cost Estimate Revision 4 12 WHITE MESA MILL RECLAMATION COST ESTIMATE December 2012 Revision 4.12 Mobilization $437,800 Office Facilities $58,500 Mill Decommissioning $2,139,409 CelM $1,776,448 Cell 2 $1,803,668 Cells $2,057,848 Cell 4A $1,435,844 Cell 4B $1,465,011 Management Support $2,297,613 Miscellaneous $869,063 Subtotal Direct Costs $14,341,205 Profit Allowance 10 00% $1,434,120 Contingency 15 00% $2,151,181 Licensing & Bonding 2 00% $286,824 UDEQ Contract Administration 4 00% $573,648 Engineenng Design Review 2 25% $322,677 Contractors Equipment Floater $82,250 Automobile and General Liability Insurance $284,600 Long Term Care Fund $833,353 Total Reclamation $20,309,858 Revised Bond Amount $20,309,858 12/17/2012 -11 07 AM - WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING MILL DECOMMISSIONING Mill Building Demolition Resource Descnption Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Mill Building Demolition Ore Feed Demolition Resource Descnption Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Total Ore Feed Demolition SX Building Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $15 03 640 $9,618 hrs $15 25 320 $4,879 hrs $1 35 960 $1,296 hrs $97 66 640 $62,501 hrs $21 51 640 $13,768 hrs $137 94 160 $22,071 hrs $25 75 160 $4,120 hrs $133 91 160 $21,425 hrs $27 26 160 $4,362 hrs $154 00 160 $24,639 hrs $27 26 160 $4,362 hrs $97 93 160 $15,668 hrs $28 41 160 $4,545 hrs $62 40 80 $4,992 hrs $28 41 80 $2,273 hrs $19 10 1.360 $25,974 sf $3 30 37.500 $123,750 Units Cost/Unit Task Units $350,244 Task Cost hrs $15 03 64 $962 hrs $15 25 32 $488 hrs $1 35 96 $130 hrs $97 66 64 $6,250 hrs $21 51 64 $1,377 hrs $137 94 16 $2,207 hrs $1721 16 $275 hrs $133 91 16 $2,143 hrs $20 65 16 $330 hrs $154 00 16 $2,464 hrs $20 65 16 $330 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $19 10 112 $2,139 Units Cost/Unit Task Units $19,095 Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total SX Building Demolition 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 hrs $15 03 320 $4,809 hrs $15 25 160 $2,439 hrs $1 35 480 $648 hrs $97 66 320 $31,251 hrs $21 51 320 $6,884 hrs $137 94 80 $11,035 hrs $25 75 80 $2,060 hrs $133 91 80 $10,713 hrs $27 26 80 $2,181 hrs $154 00 80 $12,320 hrs $27 26 80 $2,181 hrs $97 93 0 $0 hrs $28 41 0 $0 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $1910 560 $10,695 sf $3 30 55,970 $184,701 $281,917 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING CCD Circuit Removal Resource Descnption Units Cost/Unit Task Units Task Cost hrs $15 03 120 $1,803 hrs $15 25 60 $915 hrs $1 35 180 $243 hrs $97 66 120 $11,719 hrs $21 51 120 $2,582 hrs $137 94 30 $4,138 hrs $17 21 30 $516 hrs $133 91 30 $4,017 hrs $20 65 30 $620 hrs $154 00 30 $4,620 hrs $20 65 30 $620 hrs $97 93 30 $2,938 hrs $15 76 30 $473 hrs $62 40 15 $936 hrs $15 76 15 $236 hrs $1910 255 $4,870 sf $3 30 15,000 $49,500 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total CCD Circuit Removal Sample Plant Removal Resource Description Units Cost/Unit Task Units $90,746 Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Sample Plant Removal Temporary Storage Building Removal Resource Descnption hrs $15 03 32 $481 hrs $15 25 16 $244 hrs $1 35 48 $65 hrs $97 66 32 $3,125 hrs $21 51 32 $688 hrs $137 94 8 $1,104 hrs $17 21 8 $138 hrs $133 91 8 $1,071 hrs $20 65 8 $165 hrs $154 00 8 $1,232 hrs $20 65 8 $165 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $19 10 56 $1,070 sf $3 30 4,200 $13,860 Units Cost/Unit Task Units $23,408 Task Cost Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Equipment Maintenance (Butler) Concrete Removal Total Temporary Storage Building Removal hrs $15 25 8 $122 hrs $1 35 8 $11 hrs $97 66 2 $195 hrs $21 51 2 $43 hrs $137 94 2 $276 hrs $25 75 2 $52 hrs $19 10 4 $76 sf $3 30 600 $1,980 $2,755 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Truck Shop Removal Resource Description Units Cost/Unit Task Units Task Cost hrs $15 03 32 $481 hrs $15 25 16 $244 hrs $1 35 48 $65 hrs $97 66 24 $2,344 hrs $21 51 24 $516 hrs $137 94 8 $1,104 hrs $17 21 8 $138 hrs $133 91 8 $1,071 hrs $20 65 8 $165 hrs $154 00 8 $1,232 hrs $20 65 8 $165 hrs $62 40 0 $0 hrs $28 41 0 $0 hrs $1910 48 $917 sf $3 30 4,200 $13,860 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Truck Shop Removal Boiler Demolition Resource Descnption Units Cost/Unit Task Units $22,301 Task Cost hrs $15 03 160 $2,405 hrs $15 25 80 $1.220 hrs $1 35 240 $324 hrs $97 66 160 $15,625 hrs $21 51 160 $3,442 hrs $137 94 40 $5,518 hrs $17 21 40 $689 hrs $133 91 40 $5,356 hrs $20 65 40 $826 hrs $154 00 40 $6,160 hrs $20 65 40 $826 hrs $97 93 0 $0 hrs $15 76 0 $0 hrs $62 40 0 $0 hrs $15 76 0 $0 hrs $19 10 280 $5,348 sf $3 30 2.900 $9,570 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Boiler Demolition $57,308 Vanadium Oxidation Circuit Removal Resource Descnption Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Dnvers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Vanadium Oxidation Circuit Removal 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 hrs $15 03 . 64 $962 hrs $15 25 32 $488 hrs $1 35 96 $130 hrs $97 66 64 $6,250 hrs $21 51 64 $1,377 hrs $137 94 16 $2,207 hrs $17 21 16 $275 hrs $133 91 16 $2,143 hrs $20 65 16 $330 hrs $154 00 16 $2,464 hrs $20 65 16 $330 hrs $97 93 0 $0 hrs $15 76 0 $0 hrs $62 40 0 $0 hrs $15 76 0 $0 hrs $19 10 112 $2,139 sf $3 30 1,200 $3,960 $23,055 Denison Mines (USA) Corp White Mesa Mill v»inio ivi«ba ivmi MILL DECOMMISSIONING Mill Yard Decontamination Resource Descnption Units Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Mill Yard Decontamination" Ore Storage Pad Decontamination Resource Descnption hrs $215 65 274 $59,087 hrs $27 26 274 $7,470 hrs $137 94 68 $9,380 hrs $25 75 68 $1,751 hrs $98 69 68 $6,711 hrs $25 75 68 $1,751 hrs $83 49 68 $5,677 hrs $25 75 68 $1,751 hrs $115 79 68 $7,874 hrs $23 48 68 $1,597 hrs $73 28 68 $4,983 hrs $27 26 68 $1,854 hrs $19 10 614 $11,727 $121,613 Includes Ammonimum Sulfate Storage Tank contamination Units Cost/Unit Task Units Task Cost hrs $215 65 189 $40,757 hrs $19 31 189 $3,649 hrs $137 94 48 $6,621 hrs $1721 48 $826 hrs $98 69 48 $4,737 hrs $20 65 48 $991 hrs $83 49 48 $4,008 hrs $20 65 48 $991 hrs $115 79 48 $5,558 hrs $1816 48 $872 hrs $73 28 48 $3,517 hrs $20 62 48 $990 hrs $19 10 429 $8,193 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Waterwagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Ore Storage Pad Decontamination $81,712 Equipment Storage Area Cleanup Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Equipment Storage Area Cleanup hrs $215 65 68 $14,664 hrs $19 31 68 $1,313 hrs $137 94 17 $2,345 hrs $17 21 17 $293 hrs $98 69 17 $1,678 hrs $20 65 17 $351 hrs $83 49 17 $1,419 hrs $20 65 17 $351 hrs $115 79 17 $1,968 hrs $18 16 17 $309 hrs $73 28 17 $1,246 hrs $20 62 17 $351 hrs $1910 153 $2,922 $29,210 12/17/2012 - 11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill » N * MILL DECOMMISSIONING Revegetate Mill Yard & Ore Pad Resource Descnption Units Cost/Unit Task Units Task Cost hrs $215 65 174 $37,523 hrs $19 31 174 $3,360 hrs $137 94 0 $0 hrs $17 21 0 $0 hrs $98 69 33 $3,257 hrs $20 65 33 $682 hrs $83 49 33 $2,755 hrs $20 65 33 $682 hrs $115 79 0 $0 hrs $18 16 0 $0 hrs $73 28 33 $2,418 hrs $20 62 33 $681 Acre $322 50 50 $16,125 hrs $19 10 273 $5,214 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Seed MIX Equipment Maintenance (Butler) Total Revegetate Mill Yard & Ore Pad $72,695 Total Demolition and Decontamination I $1,406,871] CLEANUP OF WINDBLOWN CONTAMINATION Scoping Survey Resource Descnption Units Cost/Unit Task Units Task Cost Soil Samples each $50 00 100 $5,000 Survey Crew hrs $14 46 752 $10,877 Sample Crew hrs $14 46 1.312 $18,977 Total Scoping Survey $34,854 Charactenzation Survey Resource Descnption Units Cost/Unit Task Units Task Cost Soil Samples each $50 00 472 $23,600 Sample Crew hrs $14 46 1,136 $16,431 Total Characterization Survey $40,031 Final Status Survey Resource Descnption Units Cost/Unit Task Units Task Cost Soil Samples each $50 00 300 $15,000 Sample Crew hrs $14 46 3,552 $51,377 Total Final Status Survey $66,377 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Windblown Cleanup Resource Descnption Units Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Soil Samples Survey Crew Sample Crew Equipment Maintenance (Butler) Total Windblown Cleanup Quality Control Resource Descnption hrs $215 65 680 $146,640 hrs $27 26 680 $18,538 hrs $98 69 170 $16,777 hrs $25 75 170 $4,378 hrs $83 49 170 $14,194 hrs $25 75 170 $4,378 hrs $73 28 170 $12,457 hrs $27 26 170 $4,634 each $50 00 500 $25,000 hrs $14 46 163 $2,358 hrs $14 46 83 $1,201 hrs $19 10 1,190 $22,728 Units Ck)st/Unit Task Units $273,282 Task Cost Quality Control Contractor Total Quality Control Total Cleanup Windblown Contamination hrs $62 00 2.080 $128,960 $128,960 $543,503 Conventional Ore Disposal Resource Descnption Units Cost/Unit Task Units Task Cost Cat 770 Haul Truck (3) Truck Dnvers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Conventional Ore Disposal Total Quantity hrs $97 66 639 $62,374 hrs $21 51 639 $13,740 hrs $137 94 213 $29,368 hrs $25 75 213 $5,482 hrs $115 79 213 $24,653 hrs $23 48 213 $5,000 hrs $73 28 25 $1,832 hrs $27 26 25 $682 hrs $19 10 1,089 $20,808 125.185 Cubic Yards* 196 Cubic Yards per Truck per hour 639 Truck Hours $163,939 * 169.000 tons maximum projected thru 2012 to March 2013 Loose (in-truck) matenal unit weight assumed as 100 Ib/cubic foot 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Claricone Contaminated Soil Disposal Resource Descnption Units Cost/Unit Task Units Task Cost Cat 770 Haul Truck (3) Truck Dnvers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) hrs $97 66 20 $1.993 hrs $21 51 20 $439 hrs $137 94 7 $938 hrs $25 75 7 $175 hrs $11579 7 $788 hrs $23 48 7 $160 hrs $73 28 15 $1,099 hrs $27 26 15 $409 hrs $19 10 49 $936 Total Clancone Contaminated Soil Disposal Total Quantity 4,000 Cubic Yards* 196 Cubic Yards per Truck per hour 20 Truck Hours $6,937 *Use 4 times estmated volume Loose (in-truck) matenal unit weight assumed as 100 Ib/cubic foot 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill MILL DECOMMISSIONING Alternate Feed Disposal Cabot and FMRI Material Resource Descnption Units Cost/Unit Task Units Task Cost Cat 770 Haul Truck (3) Truck Dnvers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Watenvagon Cat 651 Watenvagon Operator Cat 14H Motorgrader Cat 14H Motorgrader Operator Equipment Maintenance (Butler) Total Cabot & FMRI Matenal hrs $97 66 33 $3,178 hrs $21 51 33 $700 hrs $137 94 11 $1,496 hrs $25 75 11 $279 hrs $115 79 11 $1,256 hrs $23 48 11 $255 hrs $73 28 6 $440 hrs $27 26 6 $164 hrs $19 10 60 $1,150 $8,919 Total Quantity 6.379 Cubic Yards* (projected to 03/01/2013) 196 Cubic Yards per Truck per hour 33 Truck Hours Cameco Barrels and Honeywell Barrels Includes Cabot and FMRI Resource Descnption Units Cost/Unit Task Units Task Cost Equipment Operators hrs $21 51 70 $1,510 Flat Bed Trailer and Tractor* hrs $55 00 70 $3,861 Fork Lift (2) hrs $18 00 140 $2,527 Equipment Maintenance (Butler) hrs $19 10 70 $1,341 Total Cameco and honeywell Barrels * includes operator $9,240 7.020 Barrels 40 Barrels per load 0 4 Hours per load 70 Truck Hours (projected to 03/01/2013) Tons lbs per barrel No Drums Sub-Total Alternate Feed Disposal CaF2 979 727 2.692 Calcined 435 320 2,719 Regen 31 406 153 KF 224 309 1.450 UF4 2 547 7 1.671 7.020 TOTAL MILL DECOMMISSIONING I $2,139,409] 12/17/2012 -11 07 AM-WMM Rec Plan Est December 2012 Rev 4 12 Denison Mines (USA) Corp White Mesa Mill