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January 31,2019 Mr.Lucas West <br /> Page 2 of 2 <br /> In October of 2018, BMRI potholed both ends of the overflow section (stations 32+25 and <br /> 37+25)to verify the liner depth. BMRI measured the liner depth at 8622.10 feet amsl for station <br /> 32+25 and deeper than 8621.33 feet amsl for station 37+25. The existing surface elevation is <br /> approximately 8626.0 ± 0.5 feet. This leaves a distance of approximately 3-3.5 feet between the <br /> proposed finished elevation of the overflow section at 8625.5 feet and the liner elevation. Please <br /> see Drawings 1-4 for the site plans and two ditch cross sections of 32+25 and 37+25. <br /> With this confirmation of the tailing impoundment liner depth, BMRI plans to proceed with <br /> lowering the overflow section of the Ditch, and this work will not impact the liner. BMRI plans <br /> to complete this work between April and August 2019 in conjunction with the current ongoing <br /> construction on the San Luis Drop Structure. <br /> Constructing the overflow section will remove an estimated 1,034 cubic yards of clean material. <br /> BMRI plans to push this extra material onto the TSF. The extra material on the TSF will be <br /> gradually sloped into the existing surface and reclaimed per the reclamation portion of BMRI's <br /> Permit No. M-88-112. Any reclamation required for the road and the ditch will be performed in <br /> accordance with the South Diversion Ditch Drop Structure specifications provided in TR-34. <br /> Should additional information be required or any clarifications are necessary, please do not <br /> hesitate to contact me at(719) 379-0538. <br /> Sincerely, <br /> David S. Carino <br /> Site Supervisor <br /> Battle Mountain Resources, Inc. <br /> Enclosures: <br /> Drawing 1 General Site Plan <br /> Drawing 2 Overflow Section Site Plan <br /> Drawing 3 Ditch Cross Section 32+25.00 <br /> Drawing 4 Ditch Cross Section 37+25.00 <br /> Cc: Julio Madrid, Battle Mountain Resources <br /> Larry Fiske,Newmont USA Limited <br /> Tim Runnells, EA <br /> Scott Hardt, DGS <br /> Jim Witwer, DGS <br /> BMRI File <br />