Virginia Against Uranium Mining: APPLICATION FOR A URANIUM EXPLORATION PERMIT

Thank you for your inquiry.
Uranium exploration permits are authorized by 45.1 – 274 of the Code of Virginia. That statute does not require a public meeting for the initial permit issuance or for permit renewals.
If we can be of any further assistance, please let me know.
With best regards,
Tom Bibb

Tom Bibb , P.E.
Engineering Manager
VA Division of Mineral Mining
900 Natural Resources Drive, Suite 400
Charlottesville VA 22903
Tel: 434-951-6310
Fax: 434-951-6325
tom.bibb@dmme.virginia.gov

http://www.dmme.virginia.gov/DMM/UraniumApplication.pdf

COMMONWEALTH OF VIRGINIA

DEPARTMENT OF MINES, MINERALS & ENERGY

DIVISION OF MINERAL MINING

900 NATURAL RESOURCES DRIVE, STE. 400

CHARLOTTESVILLE, VIRGINIA 22903

(434) 951-6310

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APPLICATION FOR A URANIUM EXPLORATION PERMIT

FOR OFFICE USE ONLY

APPLICATION NO. PERMIT NO.

RECEIPT NO.

DATE ISSUED

APPLICANT INFORMATION

1. Name of Applicant Virginia Uranium, Inc.

2. Office Telephone Number (434) 432-1065

3. Mailing Address 231 Woodlawn Heights; Chatham, VA 24531

4. Exploration activity is located 6 (six) north-east of Chatham, VA

(miles) (direction) (town)

on Public Road No. 690 in Pittsylvania County County/City.

5. Type of Organization:

( )Sole Proprietorship - Complete questions A,B,C,D

(X )Corporation - Complete questions A,B,C,D,F,G,H,I,J

( )Partnership - Complete questions A,B,C,D,E,F

( )Other - Complete questions A,B,C,D,E,F

Specify (If Other):

(A) Virginia State Corporation Commission registration number 067334

(B) Person with overall responsibility for operating decisions at the exploration site:

Name/Title Joe Aylor, Chief Geologist

Address 231 Woodlawn Heights; Chatham, VA 24531

Phone (434) 432-1065 (Office) or (434) 770-0797 (mobile)

E-mail JAylor@VAUInc.com

Name Address

Telephone

1. Joe Aylor 231 Woodlawn Heights; Chatham, VA 24531 (434) 770-0797

2. Mick Mastilovic 231 Woodlawn Heights; Chatham, VA 24531 (434) 770-3921

(D) Federal Tax ID Number of Applicant 20-8797826

(E) List all individuals having any ownership interest in the business entity.

Name/Title Address

Telephone

Not Applicable

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(F) Principal organization officials, corporate officers, directors and members:

Name/Title Address

Telephone

Walter Coles, Sr/Chairman 1040 Coles Road; Chatham, VA 24531 (434) 656-1417

Norm Reynolds/President&CEO 649 South Main Street; Chatham, VA 24531 (434) 429-1534

Henry Bowen/Director 253 Sheva Road; Chatham, VA 24531 (434) 432-1460

(G) Corporation name, address and telephone number if different than applicant:

Not Applicable

(H) State of Incorporation Virginia

(I) Virginia Registered Agent:

Name Address

Telephone

R. Neal Keesee Jr. 10 S.Jefferson St; Suite 1400; Roanoke, VA 24011 (540) 983-7627

(J) If a subsidiary, provide:

Not Applicable

Parent Organization Name

Address

Telephone State of Incorporation

6. Name, address and telephone number of person(s) authorized to sign permit documents:

Name Address Telephone

Norm Reynolds 231 Woodlawn Heights; Chatham, VA 24531 (434) 429-1534

Mick Mastilovic 231 Woodlawn Heights; Chatham, VA 24531 (434) 770-3921

Joe Aylor 231 Woodlawn Heights; Chatham, VA 24531 (434) 770-0797

7. List any exploration or mining permits of any type held by the applicant in Virginia and the applicable

permit identification numbers.

Issuing Authority Permit No./Identification No.

NONE

EXPLORATION OPERATION INFORMATION

8. USGS Quadrangle - Spring Garden/Gretna Northing - 36

°52’18” Easting - (-) 79°18’00”

9. Type of Exploration Activity:

( X ) Rotary Drill ( ) Surface Excavation ( ) Underground Excavation

( X ) Other (specify) Diamond Drill Core Holes

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10. Approximate date exploration operations will commence. November 15, 2007 or later

(Applicant shall notify the Division prior to commencing exploration activities.)

11. Distance in feet to nearest inhabited building. Varies, please see map on question 20.

12. List any person with an ownership or leasehold interest in the surface land or minerals to be entered

or explored and the date each person was notified of the applicant’s intent to apply for an exploration

permit.

Name Address Date Notified

Surface Coles Hill, LLC 1040 Coles Rd; Chatham,VA 24531 April 4, 2007

Mineral Coles Hill, LLC 1040 Coles Rd; Chatham,VA 24531 April 4, 2007

13. Specify source of applicant's legal right to enter and conduct mining operations on land covered by

the permit: Mineral leases with Coles Hill LLC on April 4, 2007 and attached is an Agreement with

Coles Hill LLC signed on October 25, 2007 providing Virginia Uranium the legal right of entry.

(Provide deed book number, page number, parties to the deed or lease, date of execution or provide

a copy of the deed or lease.)

14. Please provide the following information for any contractors who will be working on the exploration

site (attach additional sheets as necessary).

Contractor’s Business Name Boart Longyear Company DMM # 0000738

Virginia State Corporation Commission registration number _ F114503-8/ Federal#870503343

Business address 300 Grayson Rd.; Wytheville, VA 24382

Business telephone (276) 228-7811

Address of record Same as business address

Service to be provided Drilling services

Persons with responsibility for operating decisions:

Name Address

William Dycus P.O. Box 919; Wytheville, VA 24382

Mike Neal P.O. Box 919; Wytheville, VA 24832

Persons with responsibility for the health and safety of employees:

Name Address

William Dycus P.O. Box 919; Wytheville, VA 24382

Dan Dunn P.O. Box 919; Wytheville, VA 24832

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Contractor’s Business Name WT Moore Well Drilling, Inc. DMM # None

Virginia State Corporation Commission registration number _ 0594408-7

Business address 1108 Moores Drive; Hurt, Virginia 24563

Business telephone (434) 324-8544

Address of record Same as above

Service to be provided Rotary percussion drilling

Persons with responsibility for operating decisions:

Name Address

WT Moore Same as above

Persons with responsibility for the health and safety of employees:

Name Address

Same as above

Contractor’s Business Name Century Geophysical Corporation DMM # None

Virginia State Corporation Commission registration number _ Not Registered in Virginia

Business address 1223 S. 71

st E. Ave; Tulsa, Oklahoma 74112

Business telephone (918) 838-9811

Address of record Same as above

Service to be provided Logging services

Persons with responsibility for operating decisions:

Name Address

Brian Peterson Same as above

Kevin West Shinniston, West Virginia

Persons with responsibility for the health and safety of employees:

Name Address

Same as above

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Contractor’s Business Name Marshall, Miller & Associates DMM # 0000734

Virginia State Corporation Commission registration number _ 0159588-3

Business address 534 Industrial Park Road; Bluefield, VA 24605

Business telephone (276) 322-5467

Address of record Same as above

Service to be provided Logging services

Persons with responsibility for operating decisions:

Name Address

Mark Smith Same as above

Persons with responsibility for the health and safety of employees:

Name Address

Tom Willis Same as above

Contractor’s Business Name Larry Roach DMM # N/A

Virginia State Corporation Commission registration number _ N/A- individual

Business address 904 Zion Road; Gretna, VA 24557

Business telephone (434) 656-1789

Address of record Same as above

Service to be provided Backhoe services

Persons with responsibility for operating decisions:

Name Address

Larry Roach Same as above

Persons with responsibility for the health and safety of employees:

Name Address

Same as above Same as above

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15. List rivers, streams, tributaries or water impoundments on or adjacent to permitted property.

pH adjacent to the

Name of waterway exploration area

Tributary to

Mill Creek 6.78-7.60 Whitehorn Creek

Georges Creek 6.78-7.60 Whitehorn Creek

Whitehorn Creek 6.78-7.60 Banister River

Banister River 6.78-7.60 Dan River

Sample pH Temperature

Point ID Northing Easting

SS 1 3485064.444 11249004.89 Whitethorne Creek at Chalk Level Road 7.28 15.9

SS 2 3488835.852 11254297.31 Georges Creek at Chalk Level Road 7.22 16.9

SS 3 3484344.855 11258494.9 Georges Creek at Markham Road 7.25 17.3

SS 4 3480186.951 11263009.49 Dry Branch Creek at Markham Road 6.79 22.8 Dry

SS 5 3479589.495 11268609.15 Banister River at Markham Road 7.26 18.3

SS 6 3479556.692 11263972.67 Whitethorn Creek at S. Meadows Road 7.30 18.0

SS 7 3477381.697 11256463.71 Dry Branch at S. Meadows Road - - Dry

SS 8 3477862.923 11254180.1 Mill Creek at S. Meadows Road 7.60 18.8 Behind house

SS 9 3480951.231 11241683.97 Mill Creek at Chalk Level Road 7.31 21.5

SS 10 3476916.055 11247277.16 Mill Creek at Coles Road 7.10 19.2

SS 11 3461572.281 11243124.52 Banister River at Halifax Road 7.34 18.4

SS 12 3465035.223 11245188.59 Tributary to Banister River at Sheva Road 7.38 19.4

SS 13 3466821.726 11245754.13 Tributary to Banister River at Sheva Road - - Dry

SS 14 3470240.085 11244124.39 Tributary to Banister River at Sheva Road 6.78 18.6

SS 15 3477195.596 11236932.55 Mill Creek at Payneton Road 7.09 19.1

Maxiumum Measured = 7.60

Minimum Measured = 6.78

Notes: All measurements were taken on upstream side of road crossing except for pH 8, which was not at a road crossing.

Lat/Long for dry sample points are for upstream side as indicated on topo quad sheets.

pH measurements 1-10 were taken on 10/1/07, 11-15 were taken on 10/2/07

pH measurements made using Oakton Waterproof pHTestr 30

Sample points were marked with yellow tape for location by survey crew.

Description

Comments

Coles Hill pH measurements

October 1 and 2, 2007

Sample Location

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Baseline data will be established for the following locations prior to drilling:

Sample

Point ID Latitude Longitude

PS-1 3478501 11246873 Coles Pond West of SR 690

PS-2 3478505 11249743 Coles Pond East of SR 690

PS-3 3477109 11247968 Roy Crider Pond Near House West of Gas Line

PS-4 3476095 11249502 Henry Bowen Pond East of Gas Line

RW-1 3479607 11248718 Well at Walter Coles House

RW-2 3479033 11248799 Walter Coles Well Near Storage Shed

RW-3 3480677 11249542 Walter Coles Cattle Well

RW-4 3476937 11248785 Well at Roy Crider's House

Sample Location

Description

Data will be collected for potential contaminants noted in Table 1. In additional to tests to be performed

per Table 1, the following will be noted for the above sample locations:

•

Current water elevation

•

Water quality

Temperature

Bacteriological testing in the form of total coli form (for residential wells only).

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16. Specify how all exploration fluids will be contained and disposed, and how storm runoff water

will be handled to minimize impact on any water courses. (Detail drainage plan attached). During

operations, drilling fluids will be re-circulated through a series of earthen pits lined with 6-mil

polyethylene (“poly”). A reserve pit will be dug down gradient to capture any runoff from rain or

artesian flows. Straw, hay bales or silt fence will be used as appropriate to control storm water runoff

and potential erosion issues. At the end of drilling, the fluids will be tested prior to final

disposal. Pit water testing will be performed by an independent third-party laboratory with results

delivered directly to DMME and Virginia Uranium. If testing confirms that the fluids are not

contaminated per Table 1, the suitable water/fluid will be pumped or hauled to the next hole or

released into the environment following best management practices for the non-point source release

of water (such as watering crops, dust suppression and other). If the fluids are found to be

contaminated, they will be hauled by a qualified carrier to a designated site certified to accept waste

of this type or treated by methods such as filtration, evaporation and others until they meet

acceptable standards.

Table 1: Water Contamination Tests and Levels (Non-Filtered)

Type of

Contaminant

Contaminant Maximum Contamination

Level

Standard

Arsenic 340

μg/L Virginia Surface Water

Quality (Acute Freshwater

Standard)

Lead 120

μg/L Virginia Surface Water

Quality

(Acute Freshwater Standard)

Mercury 1.4

μg/L Virginia Surface Water

Quality

(Acute Freshwater Standard)

Inorganic

chemical

(Heavy Metals)

Selenium 20

μg/L Virginia Surface Water

Quality

(Acute Freshwater Standard)

Alpha particles 15 pico-curies(pCi)/L Virginia Surface Water

Quality & US EPA Drinking

Water

Beta particles 4 millirem/year Virginia Surface Water

Quality & US EPA Drinking

Water

Combined Radium

226 and 228

5 pCi/L Virginia Surface Water

Quality & US EPA Drinking

Water

Radionuclide

Uranium 30

μg/L Virginia Surface Water

Quality & US EPA Drinking

Water

Other Diesel range organics 1 mg/L Virginia Petroleum Storage

Standard

If baseline water values exceed those in Table 1, then the baseline water values will be what will be

returned to the environment.

No de-watering activities are anticipated for any of the drilling since any water encountered will be

used in the drilling process. However, if significant groundwater is encountered and if it starts to

come out of the hole, the excess will be placed in containers for analysis prior to release back into

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the environment and/or the hole will be “mudded up” to plug off the water. In the worst case, the

hole may have to be abandoned and taken out of commission. If there is a loss of circulation water

during drilling and drilling is to continue, the hole will be “mudded up” using Quick-Gel (bentonite),

EZ-Mud, starch, ground up paper or other media. In the worst case of loss of circulation, the hole

can be plugged with cement and taken out of service or redrilled. Hole abandonment will follow

standard procedures described in section 21.

Holes are expected to contain the following amounts of water for drilling: 36 gallon/100 feet for NQ

and 58 gallons/100 feet for HQ. Holes are expected to use 12 gallons/minute most of it coming from

re-circulated water provided by at least one 3,240 gallon pits and perhaps up to three pits (9,720

gallons total). Water usage from nearby steams, wells and other water sources will be less than

9,000 gallons per day. No point source discharge of water will be allowed and only non-point

source discharge will be used. The driller will be responsible for keeping a daily log of estimated

water usage from surface streams to ensure that it does not exceed 10,000 gallons per day as

averaged over a 30-day period.

All mud pits shall be constructed and maintained in a manner that minimizes the possibility for

overflow, structural failure and/or breaching during storm events by maintaining a 2:1 slope ratio of

depth to width for mud pit walls.

All drill pads and mud pits will be smoothed out and contoured to match the surrounding terrain as

soon as practical after the drilling is completed. Though no new road construction is anticipated,

routes used for this project that experience erosion from heavy traffic or muddy and wet conditions

will be protected using Best Management Practices to reduce erosion and accelerate re-vegetation.

These practices include spreading of hay or straw material in any minor rills, travel paths or any

other high traffic areas rutted and impacted by vehicle and equipment traffic.

17. Specify any chemicals or hazardous materials (including petroleum products) which will be used on

the exploration site and methods to be employed to prevent contamination of land and water

resources on or adjoining permitted property.

Petroleum products and batteries (see Table 2 for list) are the only materials to be used on this

project. Our plan of operations is to put down 6-mil plastic beneath the drill rig with oil sorbent

material on top of the plastic to capture any spills of oil or diesel fuel. Water to be discharged will

be evaluated for diesel range organics to ensure no contamination has occurred prior to movement or

discharge.

Table 2: List of all chemicals proposed to be used by the exploration operation

Chemical Use

Diesel Fuel for drill rig, generator, trucks and heavy

equipment

Gasoline Fuel for trucks and equipment

Motor oil Lubricant

Drilling mud additives: QUIK-GEL; EZ-MUD Drilling mud, maintain open hole, lubricate drill bit

Ethylene glycol Anti-freeze coolant

Hydraulic fluid Hydraulic devices

Grease, petroleum based Lubrication

Batteries and battery acid Electric power

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OPERATION/RECLAMATION PLANS

18. Specify the materials that will be generated by exploration operations and the plans for handling and

disposal during operations and reclamation.

TYPE OF MATERIAL DISPOSAL METHOD

Overburden Settlement in pits

Spoil/Waste Minerals Settlement in pits

Used Oil and Lubricants Transport and disposal by Safety Kleen or equivalent

Trash and Debris Local trash collection and disposal service

Hazardous Material At appropriate disposal site

Buildings/Structures N/A

19. Describe in detail the method of exploration, procedures for containment and disposal of all drilling

fluids, handling drainage, regrading, and vegetation during active exploration and upon completion

(attach narrative).

See section 21 for a detailed discussion of drilling and operations related to exploration.

Containment will consist of earthen pits to be dug to capture the cuttings from the drilling process and

to allow for the re-circulation of drilling fluids. A down-gradient reserve pit and berm will be dug to

capture any runoff from rain or artesian flows. To ensure that no seepage occurs into the

groundwater, the pits will be lined with 6-mil plastic.

At the completion of the drilling, all or a portion of the water fluid will be used with cement for hole

abandonment. If any water/fluid remains it will be transported to the next hole for use there provided

it contains no contamination after testing. The testing will be per Table 1 provided in the answer to

question 16.

During the exploration program, reclamation activities will involve management of drilling

procedures to contain and bury the resulting cuttings. Concurrent reclamation of travel routes and

drill sites will be completed to the extent possible during operations. Final reclamation will be

completed within two years of project completion.

The pits will be ultimately filled in with soil that was excavated from them, seeded and covered with

straw. The seed mix to be used should follow the following guidelines:

•

50 pounds per acre of tall fescue (endophyte free)

•

15 pounds per acre of annual rye

•

6 pounds per acre of red or white clover

Typical application rates for soil supplements would be 2 tons per acre of lime, 400 pounds per acre

of 10 /10/10 fertilizer, and 2000 pounds per acre of straw mulch.

When all drilling and testing activities are complete. the mud pits will be allowed to dry out then

backfilled and re-contoured to approximate the original topography and to reduce erosion. Topsoil

will be placed following contouring, and will be compacted. If there is insufficient topsoil a top

dressing may be used.

All drill core cuttings that show radioactive readings in excess of the immediate background surface

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readings will either be removed from the site for appropriate disposal or storage, or buried no less

than 3 feet below ground surface to insure that the radiation readings on surface are the same, or less,

than background readings. This evaluation of cuttings to background will be done pit by pit and

cuttings will not leave the general hole area that they came from except for laboratory testing. All

core and cuttings taken will be accounted for and their physical location maintained on site until final

disposal.

Topsoil will be stockpiled at the time of original construction. Stockpiles will be identified with signs.

When the mud pits are no longer needed, the site will be re-contoured to blend visually with the

surroundings, and drainage pattern(s) will be returned, as closely as is feasible, to pre-existing

conditions.

The closed mud pits will be seeded with an appropriate certified weed-free mix of native grasses.

forbs. and shrubs beneficial to wildlife or current use of the land. The seeding will be completed

using a broadcast method and then raked. The reclaimed surfaces will be left in a textured or rough

condition to assist with the re-establishment of vegetation.

Following the revegetation and restoration activities, monitoring will be conducted to assure

successful establishment of vegetation and no development of erosion problems. Revegetated areas

that have not become established by the end of the growing season will be treated to prevent erosion

and site degradation (i.e.. mulching. contouring, water bars). The restoration will be monitored to

ensure that it is successful.

20. Attach an application map

1 (at a scale of 1:400 or larger), prepared by a licensed professional

engineer or licensed land surveyor that shows the location of the following, where applicable:

A. Areas of land to be disturbed by the proposed exploration and reclamation.

B. Existing roads, occupied dwellings, pipelines, and bodies of surface water.

C. Topographic and drainage features.

D. Proposed trenches, roads, other access routes to be constructed, and structures to be

constructed.

E. Proposed land excavations, exploration holes or other drill holes or underground openings.

(The locations of the proposed or actual exploration drill holes and the permanent points

shall be shown in accordance with the Virginia State Plane Coordinate System.)

F. Excavated earth or waste material disposal areas.

G. Critical habitats of any endangered or threatened species listed pursuant to the Endangered

Species Act of 1973.

H. Known Archeological, Cultural or Historic Resources.

This permit application will be for a total of 40 holes. This will comprise 20 exploratory

diamond drill or rotary percussion holes and 20 re-entry holes using rotary percussion drilling to

re-enter historical holes whose general locations will be depicted on the maps provided. The

exact coordinates of the holes will be provided in Amendments to the permit and in the

supporting documentation provided with the permit. The exact location of the exploration holes

is to be determined by survey after drilling and the approximate locations are provided in the

Amendments attached and the other locations will be determined later when the results of the

initial exploratory holes become available. If more than 40 holes are to be drilled or if

The map shall show the courses and distances of such exploration activity from two permanent points or landmarks

on the tract; the approximate location areas in which test holes or core or stratigraphic holes may be drilled; name of

the owner; and boundaries and acreage of the tract on which exploration activity is to take place.

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exploration outside the defined area is to occur, DMME will be notified and appropriate steps

taken.

Describe the approximate area/size of each type of disturbance for cuts, pits, mud pits, trenches,

shafts, tunnels or other disturbances:

Mud and the reserve pits covering approximately 4 pits will be built at each well pad. One pit is

the “clean” pit providing process water for the drilling process, one pit will be used for settling of

process fluids prior to circulation of water to the “clean” pit. If necessary, a second settling pit

will be dug. The fourth pit would be placed downstream from the others for overflow during rain

storm events and other surface water control needs. In addition to the mud pits, Baker tanks,

drums and other containers may be used to contain the water from the borings. The total impact

including the drill truck per Figure 1 would be 60 ft by 100 ft (6,000 ft

2 that rounds up to 0.14

acre). Please note that the depicted pits in Figure 1 have 12’x6’x6’ dimensions with a slope of

2(depth) to 1(width) so to attain additional water storage capability the pits will need to be

lengthened (eg. To get up to 3,240 gallons the pits may need to be extended to 24’ in length).

40 drill pads, each 0.14 acres/drill area, 5.6 acre total impact.

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Figure 1: Typical Diamond and Rotary Percussion Drill Site Overview

Clean pit

st Settling pit

(less than 432 ft

3 or 3,240 gallons

per pit)

2nd Settling pit

(if necessary)

Water pump

12,960 gallon capacity

for the four pits if assumed

that built square

PIT

Silt fence with berm

(down gradient)

Safety fence

12’x6’x6’

Reserve (overflow) pit

(down gradient)

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Figure 2: Typical Pit

Diagram

12’ to

24’ long

6’ wide

6’ deep

Typical Pit surface area = 72 to 144ft

Typical Pit volume = 1,620 to 3,240 gallons

Maximum Slope: 2ft depth for every 1ft of width

6-mil poly-liner for every pit

CROSS

SECTION

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Figure 3: Typical Core Drilling Operations Diagram

Bedrock

Surface

Saprolite

Drill

3 7/8” diameter tri-cone for NW

5 5/8” diameter rock bit for HWT

Casing

NW (3 1/2” OD; 3” ID)

HWT (4 ½”OD; 4” ID)

Core Drilling

NQ (2.360”OD; 1.875” ID/Core)

HQ (3.872”OD; 2.500” ID/Core)

TD- total depth

Rotary percussion (RP) holes will be typically 6 ¼” diameter and may

go down to 4 ½” to 5” holes. The RP holes will be dug using water for

dust suppression and will result in more chips and cutting than core.

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A minimum setback of 100 feet from any watercourse within the area will be maintained and a

wetlands/watercourse delineation has been performed to ensure this. The driller will be made

aware of areas that have been designated wetlands or watercourses.

(Watercourse means any channel having definable beds and banks capable of conducting

generally confined runoff from adjacent lands. During floods, water may leave the confining

beds and banks, but under normal flows, water is confined within the channel. A watercourse

may be perennial, intermittent, or ephemeral.)

No drilling and no storage of fuels or chemicals will take place within any drainage areas

that are in the permit area.

21. Attach a narrative describing how each exploration hole shall be drilled, re-drilled, plugged and/or

abandoned.

Core Hole Drilling

Holes will be core drilled to bedrock using a core barrel and/or tri-cone or rock bit and fluid

circulation at which point a steel casing will be installed to prevent hole distortion. A diamond

core bit will be placed on a swivel double tube core barrel and placed in the hole to the bottom.

The drill string will be rotated at a high speed while pumping water/fluid through the diamond bit

and pressure exerted on the string to advance the core barrel through the rock formation. The

swivel tube will be pulled from the hole by means of an internal wire-line cable at select intervals

or if blockage occurs. Once pulled from the hole the core contained within the barrel will be

extracted and placed into core boxes for further analysis (drill string). The swivel tube will be

pumped back into the hole and the process repeated. At the completion of drilling, the hole will

be kept open for geophysical logging measurements. See figure 2 for an illustration and

dimensional details for standard sized NQ and HQ core holes.

Water will be obtained from the following sources for drilling purposes

•

Circulation of existing water

•

Mill Creek surface water pumped to site

•

Well water

•

Water trucked to site

Re-Drilling/Re-Entry

Historic holes will be located by various means and they will be excavated to the steel casing by

means of a backhoe and manual labor. The steel casing is expected to be filled with cement from

the abandonment process. Various drill bits will be used to remove the concrete and re-establish

the hole. No core will be taken out of re-drilled holes and only geophysical logging

measurements will be taken.

Re-entry and reaming would be completed in the same manner as core drilling from the surface.

There are no chips produced when performing diamond drilling or reaming with a diamond bit as

the only cutting produced are powder sized.

Hole Abandonment

Within 30-days of drilling a hole, it will be abandoned. For abandonment, a cementing pipe or

hose will be inserted to the bottom of the hole. Neat cement (cement and water) will be mixed

and pumped into the drill hole filling the hole from bottom to top. If there are voids or water

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courses that will not allow the hole to be completely filled, the hole will be plugged with a

(Halliburton or equivalent) mechanical plug just above the area of the hole containing the void

and cemented to the surface.

Site Access and Equipment

Existing roads will be used for site access and no new roads will be constructed and no existing

roads require improvement for access.

The primary equipment required for the drilling project will include one truck-mounted drill rig,

one or two water trucks, a drill pipe/equipment truck or trailer and one or two pickups. Other

equipment such as geophysical logging equipment, cement trucks, water trucks and delivery

vehicles may be on site for limited periods. For site preparation, including improving roads, and

constructing drill pads, earth-moving equipment such as a backhoe, dozer, loader and/or grader,

may be used.

Mud Pits

All mud pits shall be constructed in a manner that minimizes the possibility for overflow or

blowouts during storm events. Per standard safety protocol for open pits, safety fencing will be

installed and maintained around the pit to prevent access by unauthorized personnel, livestock or

wildlife.

22. Attach a radiation management plan that outlines procedures for monitoring and minimizing radiation

exposure to workers, the public and the environment.

Worker Radiation Management Plan

Areas to be disturbed (all pits and collar of the drill hole) will be surveyed prior to exploration for

radioactive activity using a Ludlum Model 2241 with a 1”x1” NaI detector or similar. The

maximum reading in counts per minute in the area will be recorded. Continuous measurement

during operations will be maintained using the survey meter and a final survey will be made at

the completion of drilling in counts per minute and compared to the initial reading.

All employees and contractors will wear TLD/film radiation detection badges during operations

to identify and document radioactive exposure. The TLD/film badges will be sent to a laboratory

for reading and will provide the permanent record of exposure.

Employees and contractors may also be issued self-reading personal dosimeters (SRDs) to allow

individuals to observe their exposure at any time and set administrative limits. One of the set

points will be for a dose rate of 2 millirem an hour, which is a regulatory protection standard. For

the accumulated dose function, one alarm point will be set at the NRC radiation exposure limit of

individual members of the public of 100 millirem a year which is also the administrative limit of

Virginia Uranium, Inc. for uranium exploration limits.

Neither the TLD/film-badge nor the SRD are to be used as a radiation detector or survey

instrument.

Environmental Radiation Management Plan

Uranium Exploration Permit Application

No _

Prior to the commencement of exploration activities, wells and surface water near the operations

will be sampled_ For individual exploratory drill locations prior to any operations, background

radiation readings wi II be reeorded_

All drill core cuttings that show radioactive readings in excess of the immediate background

surface readings will either be removed from the site for appropriate disposal or storage, or buried

no less than 3 feet below ground surface to insure that the radiation readings at the surface arc the

same, or less, than background readings_

Any water that does not meet the radionuelide standards in Table

I will either be treated until

standards are met and it can be safely discharged or will be transported to an appropriate site for

disposal.

CERTI FICATIO
ISICNATURE

N=o"'rm=a"n-'W"-'---'-'R"'e"-v"n"-ol"'d"'s , state that all the presentations contained

III

(Print Name)

the foregoing application are true to the best of my knowledge; and that

I am the ( X ) executive officer,

( ) general partner), ( ) sole proprietor), or ( ) legal representative of the applicant, duly authorized to

make this application on its/hislher behalf.

On behalf of the applicant,

I hereby authorize the Virginia Division of Mineral Mining to conduct

such safety/reclamation inspections as it may deem necessary or as may be required by law on this

exploration operatio

resident

& Chief Executive Officer

Title

subscribed and sworn/affirmed to, this

_..J'fc-_ day Of-,---,-~-,~----;:-:-,--,<;-;==,----,<~_,-,~<=6¢"-"7:-fft:....-,,----

(Year)

DMM-U-I

REV,

04/07

Page 18 or27

Uranium Exploration Permit Application

No. _____________________________

DMM-U-1

REV. 04/07

Page 19 of 27

Amendment A: Location of New Holes to be Diamond Core Drilled

Drill

Hole

Boring Diameter

(inches) and Type

Vertical or

Angled

Approximate

Depth (feet)

Northing* Easting*

N-301 3 ½” NW Casing for

NQ Core (**)

Vertical 1,500 3480283 11248571

N-302 3 ½” NW Casing for

NQ Core (**)

Vertical 1,500 3480302 11248863

N-303 3 ½” NW Casing for

NQ Core (**)

Vertical 1,500 3480861 11248587

S-601 3 ½” NW Casing for

NQ Core (**)

Vertical 1,500 3478118 11247998

S-602 3 ½” NW Casing for

NQ Core (**)

Vertical 1,500 3478147 11247704

S-603 3 ½” NW Casing for

NQ Core (**)

Vertical 1,500 3477601 11247595

(*) Per NAD 83 HARN, Virginia State Plane Coordinate System South, U.S. Survey Feet with the right to

move the exact location of the hole by as much as 75 feet from the indicated location;

(**) Reserve right to use HWT (4 ½” OD) casing with HQ (3.782”OD/2.500”ID) instead of NW (3.500”

OD) NQ (2.360”OD/1.875”ID) core

Note: OD – outer diameter; ID – inner/core diameter

Uranium Exploration Permit Application

No. _____________________________

DMM-U-1

REV. 04/07

Page 20 of 27

Amendment B: Location of Approximate Historic Holes to be Rotary Percussion Drilled

Drill

Hole

Boring Diameter

(inches) and Type

Vertical or

Angled

Approximate

Depth (feet)

Northing* Easting*

41-097 6 ¼” diameter RP Vertical <1,500 ft 3480819 11248253

41-138 6 ¼” diameter RP Vertical <1,500 ft 3480840 11248855

41-059 6 ¼” diameter RP Vertical <1,500 ft 3480549 11248931

41-064 6 ¼” diameter RP Vertical <1,500 ft 3480425 11248468

41-058 6 ¼” diameter RP Vertical <1,500 ft 3480229 11248573

41-024 6 ¼” diameter RP Vertical <1,500 ft 3480237 11248777

41-021 6 ¼” diameter RP Vertical <1,500 ft 3480240 11248878

41-038 6 ¼” diameter RP Vertical <1,500 ft 3478860 11248135

41-145 6 ¼” diameter RP Vertical <1,500 ft 3478527 11247659

41-086 6 ¼” diameter RP Vertical <1,500 ft 3478443 11248054

41-029 6 ¼” diameter RP Vertical <1,500 ft 3478180 11247980

41-085 6 ¼” diameter RP Vertical <1,500 ft 3477951 11247692

41-032 6 ¼” diameter RP Vertical <1,500 ft 3478075 11248100

41-107 6 ¼” diameter RP Vertical <1,500 ft 3477812 11247740

41-190 6 ¼” diameter RP Vertical <1,500 ft 3477856 11247875

41-153 6 ¼” diameter RP Vertical <1,500 ft 3477902 11248006

41-165 6 ¼” diameter RP Vertical <1,500 ft 3477786 11248043

41-162 6 ¼” diameter RP Vertical <1,500 ft 3477553 11247455

41-163 6 ¼” diameter RP Vertical <1,500 ft 3477633 11248086

41-148 6 ¼” diameter RP Vertical <1,500 ft 3477709 11248352

(*) Per NAD 83 HARN, Virginia State Plane Coordinate System South, U.S. Survey Feet with the right to

move the exact location of the hole within the area of exploration;

(**) Reserve right to use HWT (4 ½” OD) casing with HQ (3.782”OD/2.500”ID) instead of NW (3.500”

OD) NQ (2.360”OD/1.875”ID) core

Note: OD – outer diameter; ID – inner/core diameter

Uranium Exploration Permit Application

No. _____________________________

DMM-U-1

REV. 04/07

Page 21 of 27

Amendment C: Approximate Location of New Holes to be Diamond Core Drilled

Drill

Hole

Boring Diameter

(inches) and Type

Vertical or

Angled

Approximate

Depth (feet)

Northing* Easting*

N-304

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3480533 11248658

N-305

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3480529 11248842

N-306

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3480446 11248139

N-307

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3480353 11247760

N-308

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3480645 11247766

S-604

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3478047 11248304

S-605

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3477534 11248099

S-606

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3478535 11247846

S-607

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3478511 11247393

S-608

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3477512 11246996

S-609

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3477970 11247305

S-610

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3478189 11247360

S-611

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3477791 11247252

S-612

3 ½” NW Casing for

NQ Core (**)

Vertical <1,500 ft 3477597 11247799

(*) Per NAD 83, Virginia State Plane Coordinate South, U.S. Survey Feet with the right to move the

exact location of the hole within the area of exploration;

(**) Reserve right to use HWT (4 ½” OD) casing with HQ (3.782”OD/2.500”ID) instead of NW (3.500”

OD) NQ (2.360”OD/1.875”ID) core

Note: OD – outer diameter; ID – inner/core diameter

Uranium Exploration Permit Application

No. _____________________________

DMM-U-1

REV. 04/07

Page 22 of 27

Figure 1: General Location of Site and Directions

Suggested directions to the site (see red circle for approximate location) are as follows:

•

Take US 29 to Chatham, Virginia (south of Lynchburg and north of Danville)

•

Go east on Chalk Level Road

•

After passing Sonans take a right on to Coles Road (690)

•

Exploration activities will be accessed from Coles Road (690)

Uranium Exploration Permit Application

No. _____________________________

DMM-U-1

REV. 04/07

Page 23 of 27

Figure 2: Overview Topographic Map

Uranium Exploration Permit Application

No. _____________________________

DMM-U-1

REV. 04/07

Page 27 of 27

Appendix A: Legal Right to Enter Documentation

Appendix B: Archeological, Cultural and Historic Resources Report and Correspondences

Appendix C: Endangered or Threatened Species Summary Report and Correspondences

Page 2 of 2

EXHIBIT 1: Legal Description

ALL of that certain tract situated in Pittsylvania County, Virginia and located to the east and

west of State Road No. 690, as shown on Plat of Survey Showing Walter Coles Farm For

Marline Uranium Corp., dated August 5, 1981, by E. L. Wilmarth, C.L.S., his File No. D

452, recorded in the Clerk’s Office of the Circuit Court of Pittsylvania County, Virginia, in

Map Book 43, at pages 380 A & B, to which map specific reference is here made for a more

particular description of the property herein conveyed.

LESS AND EXCEPT the surface of the Protected Area as defined and determined as set

forth below. As to the Protected Area, the Grantors are only conveying the mineral interest

and no rights to the surface and all mining activities within the Protective Area shall be

limited to underground mining. The legal description of the Protected Area will be

determined after the recordation of this instrument as set forth above and recorded in a

subsequent deed of correction.

BEING a part of the same real property conveyed to (i) Walter Coles, V by Deed of Partition

dated December 21, 2005, of record in the aforesaid Clerk’s Office in Deed Book 1530, page

207 and (ii) Sarah Coles McBrayer by Deed of Partition dated December 21, 2005, of record

in the aforesaid Clerk’s Office in Deed Book 1530, page 210.

The deed is dated March 28, 2007 and recorded as Instrument No. 07-2592 on April 2, 2007.

The plat related to this property is the Marline plat referenced above in Map Book 43, at

pages 380 A & B.

COMMONWEALTH OF VIRGINIA

DEPARTMENT OF MINES, MINERALS & ENERGY

DIVISION OF MINERAL MINING