Pinon Ridge Phase 1 Geotechnical Work Plan -...

83088.1.4.2-ALB07WP001 08/17/07 Copyright 2007, Kleinfelder i Rev. 0

WORK PLAN ENERGY FUELS RESOURCE CORPORATION URANIUM MILL LICENSING SUPPORT PHASE 1 GEOTECHNICAL INVESTIGATION KLEINFELDER PROJECT NO. 83088

August 17, 2007 DCN Number: 83088.1.4.2-ALB07WP001 Revision: 0

Prepared By: 8300 Jefferson NE Suite B Albuquerque, New Mexico 87113

83088.1.4.2-ALB07WP001 08/17/07 Copyright 2007, Kleinfelder iii Rev. 0

TABLE OF CONTENTS SECTION ................................................................................................................ PAGE 1.0 INTRODUCTION.................................................................................................. 1

1.1 Description of the Project .............................................................................. 1 1.2 Purpose and Scope ........................................................................................ 1

2.0 QUALITY ASSURANCE ...................................................................................... 1 3.0 INVESTIGATION PROGRAM.............................................................................. 2

3.1 Procedures and Instructions ......................................................................... 2 3.2 Personnel Qualifications................................................................................ 5 3.3 Documentation................................................................................................ 5 3.4 Verification ...................................................................................................... 5

4.0 FIELD INVESTIGATIONS.................................................................................... 7 4.1 Field Operations.............................................................................................. 7 4.2 Field Equipment .............................................................................................. 7 4.3 Surveying......................................................................................................... 7 4.4 Drilling and Sampling ..................................................................................... 7 4.5 Sample Handling, Labeling, and Transportation.......................................... 8 4.6 Documentation and Reporting....................................................................... 8

5.0 LABORATORY TESTING.................................................................................... 9 5.1 Facility ............................................................................................................. 9 5.2 Sample Storage............................................................................................... 9 5.3 Testing Program ............................................................................................. 9 5.4 Documentation and Reporting..................................................................... 10

6.0 PHASE 1 GEOTECHNICAL INVESTIGATION SUMMARY .............................. 11 7.0 SCHEDULE........................................................................................................ 12 8.0 REFERENCES................................................................................................... 13

FIGURES Figure 1 Site Location Map Figure 2 Phase 1 Borehole Location Map APPENDICES Appendix A Work Plan Signature Sheet

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1.0 INTRODUCTION

1.1 Description of the Project

The work performed under this plan is for the Phase 1 baseline geotechnical investigation required for the Energy Fuels Resource Corporation (EFRC) Uranium Mill Licensing Suppport project, Project Number 83088. The EFRC jobsite is located on the Piñon Ridge property west of Naturita, Colorado on Highway 90. We understand that an acid leach conventional uranium mill will be built on site and operated by EFRC. The mill will process ores produced within a reasonable truck hauling distance of the site and will have a 1000 tons per day capacity. The operating life of the mill will be 20 to 30 years. We understand that the project is under the regulation of the Colorado Department of Public Health and Environment (CDPHE) and that the mill license (Radioactive Source Material License) will be issued and administered by the CDPHE.

1.2 Purpose and Scope

The investigations addressed by this Work Plan are intended to provide baseline data and preliminary analyses to perform a baseline characterization of the geotechnical properties of the Piñon Ridge property subsurface. The exploration will provide a baseline characterization to an average depth of 50 feet with several locations characterized to 100 feet below existing surface grade. Kleinfelder has selected the number, depths and locations of the borings to be drilled as well as the types of laboratory tests to be performed on samples obtained from these borings. This Work Plan provides the details for performing the Phase 1 geotechnical investigation to achieve baseline characterization objectives.


2.0 QUALITY ASSURANCE

Field investigations, laboratory testing, and other quality-impacting work performed under this Work Plan will be conducted in accordance with applicable Kleinfelder standard operating procedures (SOP), Quality Procedures (QP), and this Work Plan. Quality Assurance activities will be performed under the general oversight of Kleinfelder’s corporate Director of Quality Assurance.


3.0 INVESTIGATION PROGRAM

Investigations will consist of twenty test borings with selective sampling of soil and rock and laboratory testing of samples for general classification purposes. The locations of the test borings are shown in Figure 2 of this Work Plan.

3.1 Procedures and Instructions

Standard procedures and instructions will apply to quality-impacting activities, materials, and equipment. In general, procedures will follow ASTM standards and methods. These include:

American Society for Testing Materials (ASTM)

ASTM C128 Standard Test Method for Density, Relative Density (Specific Gravity), and Absorption of Fine Aggregate

ASTM D420 Standard Guide to Site Characterization for Engineering Design and Construction Purposes

ASTM D421 Standard Practice for Dry Preparation of Soil Samples for Particle-Size Analysis and Determination of Soil Constants

ASTM D422 Standard Test Method for Particle-Size Analysis of Soils

ASTM D854 Standard Test Methods for Specific Gravity of Soil Solids by Water Pycnometer

ASTM D1452 Standard Practice for Soil Investigation and Sampling by Auger Borings

ASTM D1587 Standard Practice for Thin-Walled Tube Sampling of Soils for Geotechnical Purposes

ASTM D2113 Standard Practice for Rock Core Drilling and Sampling of Rock for Site Investigation

ASTM D2216 Standard Test Methods for Laboratory Determination of Water (Moisture) Content of Soil and Rock by Mass

ASTM D2217 Standard Practice for Wet Preparation of Soil Samples for Particle-Size Analysis and Determination of Soil Constants


American Society for Testing Materials (ASTM) Continued

ASTM D2487 Standard Practice for Classification of Soils for Engineering Purposes (Unified Soil Classification System)

ASTM D2488 Standard Practice for Description and Identification of Soils (Visual-Manual Procedure)

ASTM D3550 Standard Practice for Thick Wall, Ring-Lined, Split Barrel, Drive Sampling of Soils

ASTM D4220 Standard Practices for Preserving and Transporting Soil Samples

ASTM D4318 Standard Test Methods for Liquid Limit, Plastic Limit and Plasticity Index of Soils

ASTM D4718 Standard Practice for Correction of Unit Weight and Water Content for Soils Containing Oversize Particles

ASTM D5079 Standard Practices for Preserving and Transporting Rock Core Samples

ASTM D5434 Standard Guide for Field Logging of Subsurface Explorations of Soil and Rock

ASTM D6032 Standard Test Method for Determining Rock Quality Designation (RQD) of Rock Core

ASTM D6151 Standard Practice for Using Hollow-Stem Augers for Geotechnical Exploration and Soil Sampling


Kleinfelder standard operating procedures (ALB-SOP-#) will be applied where appropriate to augment ASTM and other industry standards. Work Instructions (WIs) will be prepared as needed in accordance with ALB-QP-5.1 to give project specific guidance, especially where procedures will depart from ASTM or ALB-SOP requirements.

Relevant Kleinfelder procedures include:

ALB-SOP-1 Daily Field Reports ALB-SOP-2 Borehole Log ALB-SOP-4 Soil/Rock Sample Inventory/Custody Record ALB-SOP-5 Continuous Sample Tube System ALB-SOP-7 Borehole Grouting and Backfilling ALB-SOP-8 Sample Labeling, Handling, and Transport ALB-SOP-11 Laboratory Staging and Storage of Samples ALB-SOP-12 Recording and Reporting of Laboratory Test Data ALB-SOP-13 Drillers Daily Report ALB-SOP-17 Verification of Oven Temperature and Evaporation Rate ALB-QP-2.1 Indoctrination and Training ALB-QP-2.2 Documenting Personnel Qualifications ALB-QP-4.1 Document Control ALB-QP-4.2 Quality Records Management ALB-QP-4.3 Technical Review of Project Documents ALB-QP-4.4 Daily Field Reports ALB-QP-4.5 Peer Review of Deliverables ALB-QP-5.1 Procedures and Work Instructions ALB-QP-5.4 Identification and Control of Items ALB-QP-5.5 Control of Measuring and Test Equipment ALB-QP-5.6 Handling, Storage, Packaging, and Shipping ALB-QP-5.9 Control of Laboratory Samples ALB-QP-6.1 Engineering Calculations ALB-QP-6.3 Control of Drawings

The work on site will be conducted in accordance with Kleinfelder’s Illness and Injury Prevention Program and the project-specific Health and Safety Plan (HASP).

All personnel performing drilling, sampling, logging, and sample handling will have received first aid and CPR training provided by Kleinfelder. No environmental contamination is expected for the site. All personnel with utilize Level D Personal Protective Equipment (PPE) while on site.


3.2 Personnel Qualifications

All project personnel will meet or exceed the minimum requirements for their assignments through formal education and experience and project-specific training in accordance with ALB-QP-2.1 and ALB-QP-2.2. A Kleinfelder field engineer will be in charge of directing sampling and of logging all borings. A Professional Engineer registered in Colorado will oversee all engineering testing and analyses. All field personnel, including drill crews, will have the necessary training in the specific drilling, sampling, sample handling, and site safety procedures required for their respective assignments on this project.

Laboratory personnel will have current certifications applicable to the types of tests they will be performing with project –specific procedures including ALB-SOP-4, ALB-SOP-11, ALB-SOP-17, ALB-QP-5.5, and ALB-QP-5.9.

Personnel will be trained to all revisions of this Work Plan, as presented in Appendix A.

3.3 Documentation

Documentation of field activities, field data, laboratory procedures and results, and results of analyses will be prepared, recorded and maintained in accordance with ASTM methods or standards where applicable, Kleinfelder procedures (ALB-SOPs and ALB-QPs), or vendor-provided formats approved in advance by Kleinfelder. Kleinfelder standards related to documentation include:

ALB-QP-4.1 Document Control ALB-QP-4.2 Quality Records Management ALB-QP-4.4 Daily Field Reports ALB-QP-4.3 Technical Review of Project Documents ALB-QP-6.3 Control of Drawings ALB-SOP-2 Borehole Log ALB-SOP-12 Recording and Reporting of Laboratory Test Data ALB-SOP-13 Drillers Daily Report

3.4 Verification

Prior to performing the required investigations, Kleinfelder will provide evidence that project personnel are properly trained, equipment is available and is in suitable condition, and that the necessary plans and procedures are in place for all quality-related activities.


During and after the investigations, Kleinfelder will make available to EFRC and its designated representatives the information and access needed for EFRC to verify the activities performed, equipment used, and records documenting the work under this Plan. This includes:

• General compliance with this Work Plan and the relevant procedures • Qualification of personnel • Identification and control of documents • Drilling and sampling activities, methods and equipment • Logging, classifying, and reporting methods • Laboratory testing activities, methods, and equipment condition and

calibration • Sample labeling, handling, transport, storage, and control • Project records preparation and control • Data validation and management


4.0 FIELD INVESTIGATIONS

4.1 Field Operations

Field operations will consist of approximately twenty (20) test borings with selective sampling of soil and rock and handling and transportation of samples to the Kleinfelder laboratory in Albuquerque, New Mexico or Denver, Colorado.

4.2 Field Equipment

Drilling with be performed by Spectrum Exploration Inc. using a CME truck-mounted drilling rig. A compressor for air rotary drilling and a support truck will support the drill rig. Drilling tools will include 10 in. OD hollow-stem augers, NQ or HQ coring equipment, and related hardware.

Kleinfelder requests that EFRC provide an on site field enclosure for use in geotechnical sample storage.

4.3 Surveying

Boreholes will be located by Kleinfelder using a hand-held GPS device with a horizontal accuracy of 3 meters. Borehole locations will be marked after completion of each boring and will be surveyed after completion of Phase 1 drilling by EFRC.

4.4 Drilling and Sampling

Borings will be drilled by means of a combination of one or more sizes of hollow-stem augers per ASTM D 6151 and air rotary coring per ASTM D2113 if rock is encountered. Borings will be drilled to a depth of 50 feet below ground surface with occasional borings drilled to 100 ft below ground surface. Samples will be collected every 2.5 feet from 0-10 feet, then every 5 feet below 10 feet. Sampling will primarily consist of split-spoon SPT samples. SPT soil samples will be collected in sealed glass collection jars. However, California ring samples and/or Shelby tube samples will be collected if deemed appropriate by the field engineer. If rock is encountered, rock core samples will be collected in 5 foot runs.

Each borehole will be backfilled upon completion of drilling. Borings not located within the mill footprint (eight total) will be backfilled with cuttings only. The remaining twelve borings located within the mill footprint will be backfilled with two parts cuttings to one part bentonite and wetted in five foot lifts. Excess cuttings from drilling activities will be left on site and spread evenly over the ground surface. All borings will have a 2-foot mortar mix plug at the borehole collar. A five-foot long 2” x 2” location stake shall be set in each plug to mark the boring for future surveying. Each location stake shall be painted with reflective paint and marked with a permanent ink marker to show the borehole number.


4.5 Sample Handling, Labeling, and Transportation

Samples will be handled, labeled and transported in accordance with ALB-SOP-08 and ASTM D4220-06 for soil samples and D5079 for rock core. SPT soil sample jars will be transported in boxes of twelve. Any California samples collected will be transported in an upright position and secured in sample boxes in such a way as to minimize disturbance to the sample. Any rock core samples collected will be transported and stored in standard cardboard core boxes.

All samples removed from the drilling site for storage or testing will be documented with a chain-of-custody (COC) form, in accordance with ALB-SOP-04, that will follow the samples to their final disposition. Samples not tested can be retained for future use at the Kleinfelder Albuquerque office if requested by EFRC for a time period agreed upon by Kleinfelder and EFRC.

4.6 Documentation and Reporting

Field operations will be documented on the Daily Field Report (DFR) in accordance with ALB-SOP-1 by the Kleinfelder field engineer. Each driller will complete a Driller’s Daily Report (DDR) in accordance with ALB-SOP-13. Field personnel will not leave the site at the end of each work day until these reports are complete and signed as required by these procedures.

Each test boring will be fully logged by a qualified Kleinfelder engineer under procedures in ALB-SOP-02 and ASTMs D2487, D2488, D5434, and D6032. Boring logs will be reviewed in accordance with ALB-QP-4.5, Peer Review of Deliverables, as appropriate.


5.0 LABORATORY TESTING

5.1 Facility

All soil and rock samples will be tested at the Kleinfelder Albuquerque or Denver laboratory or another laboratory within Kleinfelder if required. Testing technicians will be qualified in the relevant test procedures as well as the procedures for sample handing and storage and laboratory documentation.

5.2 Sample Storage

Samples to be tested will be transported, as described above, to the designated location for safekeeping and storage until they are tested.

5.3 Testing Program

Laboratory testing of samples will be performed in accordance with the relevant ASTM standards. The specific amount and type of laboratory tests will be determined by the Kleinfelder project manager after samples are received at the laboratory,

Classification

Selected samples will be tested for Unified Soil Classification System classification by the following methods, as appropriate:

• D422 Standard Test Method for Particle-Size Analysis of Soils • D2217 Standard Procedure for Wet Preparation of Soil Samples for Particle-Size

Analysis and Determination of Soil Constants. • D2487-06 Standard Practice for Classification of Soils for Engineering Purposes

(Unified Soil Classification System) • D2488 Standard Practice for Description and Identification of Soils (Visual-

Manual Procedure) • D6913 Standard Test Methods for Particle-Size Distribution (Gradation) of Soils

Using Sieve Analysis • D4318 Standard Test Methods for Liquid Limit, Plastic Limit, and Plasticity Index

of Soil

Moisture and Density

Moisture and density will be determined through the following test methods:

• C128 Standard Test Method for Density, Relative Density (Specific Gravity), and Absorption of Fine Aggregate

• D4718 Standard Practice for Correction of Unit Weight and Water Content for Soils Containing Oversize Particles

• D2216 Standard Test Methods for Laboratory Determination of Water (Moisture) Content of Soil and Rock by Mass

• D854 Standard Test Method for Specific Gravity of Soil


Other tests may be performed at the discretion of the project manager.

5.4 Documentation and Reporting

All test results will be recorded in standard formats in accordance with ASTM procedures and Kleinfelder ALB-QPs and ALB-SOPs. If requested, results of tests will be provided to EFRC in draft form after completion of tests and checking of results. Final results will be included in the Phase 1 Geotechnical Investigation Summary.


6.0 PHASE 1 GEOTECHNICAL INVESTIGATION SUMMARY

At the conclusion of field and laboratory investigations and preliminary analyses, the Phase 1 Geotechnical Investigation Summary will be prepared. The summary will document the investigation activities and results. This summary will include:

• A drawing showing the location and ground elevation of each boring along with the site coordinates.

• A detailed log of each boring • Results of laboratory tests on soil and rock • Cross sections of subsurface profiles • A summary narrative of the results of the Phase 1 Geotechnical Investigation

In the Phase 1 Geotechnical Investigation Summary, all data from field and laboratory investigations will be compiled in appendices. These appendices will include a plan of field investigation activities (locations of borings), boring logs, and laboratory test data. All project deliverables and data files will be provided in electronic format as well as in hard copy. Hard copies will bear the stamp and signature of the responsible professional.


7.0 SCHEDULE

A preliminary schedule has been developed and a target date of October 1, 2007 has been set for the Phase 1 Geotechnical Investigation Summary. The submittal date of the Phase 1 Geotechnical Investigation Summary is dependent on the completion of drilling activities. Close coordination between EFRC and Kleinfelder will be required to execute the work in this time frame.

No allowance is included for unforeseen or uncontrollable factors such as weather, mechanical breakdown, fire hazards, and security conditions. The activities associated with each task are scheduled to the level of detail sufficient to ensure that necessary resources are available when needed, adequate lead times are allowed for preparation and mobilization, and time is allotted to complete each task.

Kleinfelder will endeavor to streamline the schedule to the maximum extent possible while maintaining all technical and quality objectives.


8.0 REFERENCES

American Society of Testing Materials (ASTM) Standard ASTM:

D1587 Standard Practice for Thin-Walled Tube Sampling of Soils for Geotechnical Purposes

D2113 Standard Practice for Rock Core Drilling and Sampling of Rock for Site I American Society of Testing Materials (ASTM) Standard ASTM D4220, latest revision, “Standard Practices for Preserving and Transporting Soil Samples.”

D2487 Standard Practice for Classification of Soils for Engineering Purposes (Unified Soil Classification System)

D2488 Standard Practice for Description and Identification of Soils (Visual-Manual Procedure)

D5079 Standard Practices for Preserving and Transporting Rock Core Samples

D5434 Standard Guide for Field Logging of Subsurface Explorations of Soil and Rock

D6032 Standard Test Method for Determining Rock Quality Designation (RQD) of Rock Core

D6151 Standard Practice for Using Hollow-Stem Augers for Geotechnical Exploration and Soil Sampling

FIGURES

Figure 1 - Site Location Map Figure 2 - Phase 1 Borehole Location Map

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APPENDIX A

Work Plan Signature Sheet

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WORK PLAN SIGNATURE SHEET

All personnel are required to read this work plan (and addenda, if necessary). The following site personnel have reviewed the above plan, are familiar with its provisions.

Name (print) Signature/Date Company/S Number

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