CONGRESSIONAL FIELD HEARING ON "***Community Impacts of Proposed Uranium
Mining Near Grand Canyon National Park*** " -- 28 MARCH 2008 --
FLAGSTAFF, AZ

WRITTEN TESTIMONY BY: **KRISTOPHER HEFTON, VANE MINERALS (US) LLC**

Uranium mining of the type under discussion has had substantial positive
community impacts in northern Arizona in the past and is currently
having positive impacts. The modern exploration and mining operations of
the era from 1980 to present have had no significant negative impacts to
the community nor to the environment in or near Grand Canyon National
Park. The negative impacts were with the loss of jobs due to the
collapse of the uranium market in late 1980s which was due to factors
beyond the local industry's control.

The recent resurgence of the industry is due to two main factors: (1)
The world's uranium production cannot keep up with demand, and (2) The
focus on harmful emissions from burning fossil fuels has shifted the
emphasis back to nuclear energy as a proven source of clean, large-scale
power generating capability that the world, and especially the US, needs
which does not produce "greenhouse gases". This resurgence is not
expected to be another boom-bust scenario as demand for natural uranium
to fuel existing and planned nuclear power plants is projected to remain
strong.

The level of uranium exploration and mining activities in northern
Arizona will likely be similar to what was happening from 1980 to 1995.
The industry brought over a hundred technical and high-paying jobs to
the region and had a substantial economic impact on local contractors
and vendors. There were no deaths and few injuries given the industrial
nature of the work and there were no lingering health issues to
employees. The industry spent well over \$100 million dollars in the
area during that time. Since exploration activities resumed in 2004, the
companies operating in the area have spent over \$6 million dollars, of
which, VANE Minerals (US) LLC has spent over \$1 million. Several
families have moved into the area, as well as local residents having
gained employment. In addition, local contractors and vendors are
benefitting. All these economic improvements are on the increase.

Regarding environmental impacts, a review of the modern period of
uranium exploration and mining does not reveal any significant impacts.
There are no mines left abandoned. All mines with depleted reserves have
been reclaimed. There are no mine openings or pits left. Exploration
sites older than a few months have been reclaimed. There are no trails
of elevated uranium in streams due to exploration and mining. Mining did
not increase the level of uranium entering the environment but, actually
caused a decrease because mining removed available uranium from the
ecosystem and transported it to a mill. Mines with reserves remaining
were left in a condition to be re-opened.

Uranium is ubiquitous on earth, even occurring in water. The average
(earth's) crustal abundance of uranium is 2.8 parts per million (ppm).
It is ubiquitous as it is present in all rock, virtually all matter,
living and non-living, and is easily transported in water. Uranium emits
gamma radiation. Therefore, due to its presence everywhere, all living
organisms are continuously subjected to low-level radiation to which
they are immune. This low-level (background) radiation has a wide range
due to uranium's wide range of concentration due to geologic variables.
Therefore, background radiation can be on the order of several times
difference from locale to locale. There are thousands of locations all
over the western US where uranium values are present in or approach
economic concentrations. Many of these occurrences are the location of
mines which have removed the higher amounts of uranium. Prior to
discovery, however, these outcrops have emitted many times background
radiation while leaching naturally into the environment, mainly due to
water. Today, there are thousands of natural outcrops having elevated
uranium content in the western US including around and in the Grand
Canyon where this is ongoing.

The easiest way to detect uranium is with a gamma-ray scintillometer,
which is the tool of choice for prospecting for uranium. It is a
highly-sensitive instrument than can detect a fractional increase in
uranium over background. Due to the mobility of uranium, it is easily
and constantly diluted and one has to be quite close to a source of
elevated uranium to detect it. Erosion of uranium from outcrops having
elevated uranium values may carry uranium into drainages adjacent to the
outcrop. However, within a short distance, the uranium content is
diluted to background. Elevated uranium can be detected for a short
distance using geochemical analytical methods on samples. Mining does
not change the state or composition of the uranium.

Between the early 1960s and 1995, various mining companies explored,
developed, mined and reclaimed uranium mines on state, federal and
private lands on both sides of the Canyon. Eleven (11) mines were in
production at various times; several were depleted and reclaimed; others
were placed on care and maintenance status pending improvement in the
price of uranium. One mine (the Orphan Mine) was left intact after it
was closed. Some 60,000 truckloads of ore were hauled to mills outside
the area, about half of which came from and were hauled through the
National Park on the south rim. The reclaimed mines provide an excellent
template for future activity. The Orphan Mine, located on a patented
mining claim on the south rim of the Canyon near Powell Point, now
belongs to the Park Service and has been preserved as an important part
of the recent history of the Grand Canyon.

Because of their small footprint, their position high above the water
table and relatively short underground mine life, most of the mines were
opened on the basis of an Environmental Assessment. The Canyon Mine, the
last mine to be permitted, required an Environmental Impact Statement.
This extra process was done to satisfy concerns raised locally.

Uranium in the region occurs in narrow vertical columns of recemented
broken rock called breccia pipes. There are uranium-bearing pipes, as
well as other uranium-bearing rocks exposed throughout the Grand Canyon
district including the National Park. These rocks are naturally eroding
and the contained uranium is being released into the environment. Mining
tends to remove the highest grade mineralization from the ecosystem,
thereby reducing the amount of uranium available to be mobilized. In the
case of accidental spillage on the surface, cleanup is relatively easy
and effective compared, for example, to petrochemical materials. One ore
truck, of the 60,000 mentioned, overturned enroute from a mine to a mill
and the ore was recovered without further incident.

The breccia pipes are host to the known highest-grade uranium deposits
remaining in the United States. They are underground mines having the
smallest footprint of any other uranium mine of comparable value, and
possibly any mine in the United States, and have a mine life of 3-5
years using current mining technology. Exploration requires a very small
area typically of 1-3 acres and 10-20 acres for a mine site. Exploration
sites are reclaimed in many cases, to no visible remains. Mines are
reclaimed to near the original conditions and, in some cases, almost no
evidence of mining activity remains.

The historic activity provides an excellent record of both management
and reclamation -- examples include the Hermit, Pigeon, and Hack 1-3
mines. We believe that VANE's operational guidelines exceed current
standards. We have encouraged meetings with the Native American people
and environmental groups, including site visits to operating drill
sites. Where possible, we have incorporated their recommendations into
our program to an extent greater than that required by regulations. VANE
has also incorporated additional measures requested by the Forest
Service following issuance of the Decision Memo, again, beyond
requirements stipulated by regulations. In conducting archaeological
surveys in the project areas, VANE's archaeologists have discovered and
documented previously unknown archaeological sites that add to the
history of the area.

VANE and its employees are committed to this business; we are already
part of the northern Arizona community and have been for the past three
years. The economic benefits of the uranium activity are already being
felt and will be substantial. To impose closures or suspensions of these
activities will negatively impact people employed by the industry and
the area's economy far more than the impact the operations will have on
the Grand Canyon or the groups who claim to be affected. Considering our
country's current energy concerns and the concerns with consuming fossil
fuels, it would be short-sighted to impose actions that would stall the
development of such an ideal resource and threaten us with more
dependence on foreign energy sources. The grade of these resources, as
well as the technical expertise required in their exploration and
mining, make them critical for national security.

My university degree is in geology. I have spent 30 years in exploration
and mining, of which 12 years were spent in uranium activities around
the Grand Canyon where I supervised dozens of drilling projects. I lived
in Flagstaff from 1982 to 1988, during which time I built a home and
started a family. My oldest daughter graduated from Northern Arizona
University in 2007. Others, like myself, as well as the representatives
in the BLM, Forest Service, and State, are well-trained and experienced
regarding the operations being undertaken. While I do not officially
represent the other companies active in the region, I am certain that
this reflects their position. Representatives from the Forest Service
and the BLM in northern Arizona and Utah (and within the State agencies
of Arizona and Utah), our contractors, and ranchers with whom we come in
contact, can attest to VANE's efforts to comply with regulations, make
operational improvements, and to be a good neighbor.

The uranium industry has examples, like many industries unfortunately,
of past misguided managing that resulted in serious environmental and
health issues. Most of the examples however, were due to unknown or
unrecognized hazards. Lead and mercury are similar elements in that
health issues were not understood early on. The past uranium issues were
studied and corrected and provide an excellent example of "how not to do
things". These past examples have not happened in the Grand Canyon area
during the modern uranium activities, and will not happen.

Recently, there have been many misleading and false statements put out
by special-interest groups that have been propagated by the news media
and embraced by political figures. This has resulted in calls for
immediate and far-reaching changes prior to verifying these statements
through gathering factual information.

The present call for immediate and far-reaching changes by politicians
and environmental groups is without merit. Mining activity ceased in
1995, giving all parties 13 years in which to demonstrate harmful
effects. There was no comment by these groups during the 30-day public
notice and comment period in the approval process of VANE's exploration
Plan of Operations that culminated in the Decision Memo issued by the
Forest Service in February, over which they are now being sued.

Based on the information provided above, VANE does not believe that
current or future activities constitute the actions requested by
Governor Napolitano and Congressman Grijalva. Most of the prospective
ground has already been claimed, as it was in the past. And the historic
activity presented in this testimony essentially represents an
environmental impact analysis over a 40-year study period beginning in
the 1960s that has resulted in no significant impact.

VANE hopes that moving forward, the industry will be judged on its
current performance than on past unrelated events. We further hope that
anyone with concerns or questions will make a thorough assessment of the
facts. Please contact VANE, the other companies, or the various
governmental agencies having jurisdiction should you have questions.

**Reference:**

Supply of Uranium - UIC Nuclear Issues Briefing Paper \# 75 - March 2007