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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1988-t 12 <br />INSPECTION DATE: F,-21-07 INSPECTOR'S INITIALS: ~_ <br />OBSERVATIONS <br />Completed a partial inspection of this operation as part of the ongoing inspection program. <br />Reviewed the water processing plant and the West pit area. The operator continues to pump and treat West pit (and some <br />alluvium) water. The processed water is discharged into the Rito Seco. The plant only runs a few days a week since the <br />efficiency has been increased and the groundwater flow into the West Pit has decreased (due to drought conditions). The <br />water level in the pit is maintained at the required elevation (to prevent seeps in the north bank of the Rito Seco) by <br />pumping pit water from two West pit wells. The water is pumped directly to the R/O system when the plant is operating or <br />it goes to Pond number 1 when the plant is shut down. <br />Did not observe any water seepage along the north bank of the Rito Seco. <br />The tailings impoundment pond (effluent from the R/O system and pumpback water from the collection pond) has been <br />reduced in size as a result of the large irrigation system that the operator installed to irrigate the vegetated areas in the <br />impoundment. The footprint is about 17 acres. The pond is only about 3 acres. <br />The operator plans to have the mill building, and adjoining structures, removed over the next year to year and a half so this <br />area can be reclaimed. Reclamation is progressing very slowly but, what has been reclaimed (revegetated), looks very good. <br />Vegetative cover on waste dump D, waste dump B and waste dump C looks real good. The south waste dump needs to be <br />graded, topsoiled and reseeded (possibly this fall says the operator). Tree survival in the north part of the West pit is <br />excellent. The west highwall in the West pit looks good; vegetative cover is good to excellent. <br />The operator is planning to reclaim the parking area this fall. <br />Reclamation will continue for several more years to include the tailings impoundment, the mill building area, the access <br />road, the south waste dump and finally, the West pit. <br />Did not observe any obvious problems. <br />I & E Contact Address <br />NAME: Bill Lyle <br />OPERATOR: Battle Mountain Resources, Inc. <br />STREET: P O Box 310 <br />CITY/$TATE/ZiP: $an Luis, CO. 81152 <br />cc: ^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />^ OTHER <br />