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Battle Mountain Resources, Inc <br />PO Box 310 <br />San Luis, CO 81152 -0310 <br />VIA UNITED STATES MAIL <br />and VIA EMAIL RECEIVED <br />Wallace H. Erickson <br />Division of Reclamation, Mining and Safety tEa <br />Department of Natural Resources DMSIOId ® B��Mttl@ <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 MIMUOAND SAFM <br />wally.erickson @state.co.us <br />Re: Correspondence dated November 20, 2013 from McClure & Eggleston, on Behalf <br />of Costilla County, to the Division of Reclamation, Mining and Safety ( "McClure <br />Correspondence ") <br />San Luis Project, Permit No. M- 1988 -112 <br />Dear Mr. Erickson: <br />I am writing on behalf of Battle Mountain Resources Inc. (BMRI) in reply to your <br />December 4, 2013 letter requesting that BMRI provide DRMS with information addressing the <br />above - referenced McClure Correspondence. BMRI understands that DRMS is preparing a <br />response to that correspondence, and we are providing the following information for DRMS to <br />consider in preparing its response. <br />The McClure Correspondence contains 11 numbered paragraphs raising questions or <br />comments on a September 11, 2013 DRMS Minerals Inspection Report (DRMS Report). The <br />DRMS Report summarizes DRMS's findings and observations from a May 13, 2013 inspection <br />of the San Luis Project. The May 13 inspection was the second site inspection that DRMS <br />conducted at the San Luis Project in response to a February 26, 2013 complaint letter submitted <br />by John C. McClure and Edwin J. Lobato on behalf of the Costilla County Commissioners and <br />the Costilla County Conservancy District. This second inspection focused on the main <br />embankment of the tailing impoundment, and found that the operations were in full compliance <br />with permit requirements and the Colorado Mined Land Reclamation Board regulations. <br />Although the tailing impoundment is not subject to the Colorado State Engineer's Office <br />(SEO) regulations, Mr. Mark Perry from the SEO participated in the May 13 inspection to <br />provide technical support to DRMS. A copy of Mr. Perry's Engineer's Inspection Report, dated <br />June 3, 2013, was included with the DRMS Report. Questions /comments raised in the McClure <br />Correspondence relate to both DRMS's findings and Mr. Perry's report. <br />The numbered paragraphs from the McClure Correspondence are shown in italics below. <br />BMRI's responses to each paragraph follow. These responses supplement the information that <br />