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PERMIT#: M-1988-112 <br />INSPECTOR'S INITIALS: WHE <br />IIgsPECTION DATE: November 12, 2015 <br />surrounding -undisturbed lands. The reclamation vegetation included slender wheatgrass, western <br />wheatgrass, crested wheatgrass, Indian rice grass, sand drop seed, blue grama, smooth brome, downy 6rome, <br />tescue, altalta, scarlet gilia, purple aster, yarrow, clover, yucca, prickly pear, fuur-wing salt bu5M, rubber rabbit <br />brush, sage brush, muuntain mahogany, pinyon and janiper. <br />I he hydrologic data for the operation is substantial. The hydrologic data dCmuristrates that disturbances to <br />the prevailing hydrolugic Balance of the lands addressed under AR -U3, and of the surrounding area, and to the <br />quantity and quality of water in surface a, id ground water systems, both during and atter the mining operation <br />and during reclamation, has been minimized. Analytical results of samples taken from duwngradient <br />munituring wells demunstrates to the Divisiun's satistaction that reclamation at the lands addressed under <br />AR -03 has been achieved. and reasonable potential future uses of the gruundwater has been protected. <br />i he public cummcnt pe, iud for AR -u3 closed u, i nuvemBer 3U, ZU15. I he Division received no objection to <br />AR -03. <br />Observations made during the inspectiun and recorded in this repurt indicate reclamation has been completed <br />tur the lands addressed under AR -03 in accordance with the conditions of the approved reclamatiun plan, and <br />the Act and Rules. un January 11, 2U1b, the Division approved AR -03. under AR -03 the Operator specified nu <br />adjustment in the financial warranty. i hercfurc, the Division's approval of AR -u3 is limited to as 716.58 -acre <br />reduction ut the permit area, trom 1,765.86 acres to 1.049.28 acres, and no adjustment in the financial <br />warranty. <br />Observations Made During the Inspection Nox Relaxed to AR -03 <br />The water treatment plant was active. Activities at the tailings dispusal facility appeared compliant with the <br />conditions ut the permit. As shuwn in Nhutus 1U and 11, the Operator has recently completed repairs tv the <br />minor erusiun alung the nurth gruin of the tailing embankment, and has completed the upgrade to the drain <br />structure passing under the tailing embankment. As shown in Photo 12, the free water pool located on tup ut <br />the tailhig pund was appropriately distanced trum the embankment. The Operator discussed possible <br />upgrades to the outlet of the divcrsiun structure fur the tailings facility; speLitically replacing the culvert drop <br />stracture with an appropriately armored open channel structure. <br />InsF.reuiun Luntact Address <br />Julio Madrid <br />Battle Mountain Resources, Inc. <br />P.u. Box 31u <br />San Cuis CO 81152 <br />Enclusure: Iz photographs <br />rage 3 Ut s <br />