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Battle Mountain Resources,Inc. <br /> P.O. Box 310 <br /> San Luis, CO 81152-0310 <br /> April 11, 2025 <br /> Mr. Lucas West <br /> State of Colorado <br /> Division of Reclamation, Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver, CO 80203 REC 'PIED <br /> Re: Permit Amendment Application <br /> San Luis Mine Project APH 1 .1 2025 <br /> Permit No. M-88-112 <br /> Colorado Division of ReclamaUOtt, <br /> Mining and Safety <br /> Dear Mr. West: <br /> The purpose of this letter is to submit Battle Mountain Resources Inc.'s (BMRI) Permit <br /> Amendment request for constructing a slurry wall adjacent to the West Pit for the Permit No. M- <br /> 88-112 from the Colorado Division of Reclamation, Mining and Safety (CDRMS). Per <br /> CDRMS's request, BMRI is also submitting an updated financial warranty calculation included <br /> in Exhibit L—Reclamation Costs. <br /> Reasoning for Slurry Wall <br /> Battle Mountain Resources, Inc. (BMRI) operates a groundwater management plan (GWMP) <br /> that is designed to prevent discharge of mine-impacted groundwater from the backfilled West Pit <br /> of the former San Luis Mine into the adjacent Rito Seco drainage. The former mine site is in <br /> southern Colorado, near San Luis, in Costilla County. Currently, approximately 200 gallons per <br /> minute (gpm) of groundwater is extracted from the West Pit, treated to appropriate surface water <br /> standards at an onsite facility, and then discharged into the Rito Seco under Colorado <br /> Department of Public Health and the Environment-Water Quality Control Department Discharge <br /> Permit CO-0045675 (DP CO-0045675). <br /> BMRI proposes to install a slurry wall around portions of the West Pit to reduce the inflow of <br /> groundwater from the adjacent alluvial aquifer, which will decrease the volume of water <br /> requiring treatment in the West Pit. The proposed installation of the slurry wall meets the <br /> objectives of the GWMP and does not affect the function of the current pump and treat remedial <br /> action. <br /> Major advantages of this proposed remedial action over the current GWMP include the <br /> following: <br /> • Divert alluvial groundwater flow away from the materials in the West Pit which <br /> will keep the water quality in a natural state. <br />