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(Page 2) <br />MINE ID # OR PROSPECTING ID #: ~~-t4aR-112 <br />INSPECTION DATE: s_e_nd INSPECTORd INITIALS: -JD- <br />OBSERVATIONS <br />Completed a partial inspection of this operaflon as part of the normal inspection program. <br />Reviewed recently seeded areas of the access road, the in-creek retention system for the pipeline (which <br />transports process water from the R/O facility to the tailings impoundment), the mill building area, reclamation <br />progress of the tailings impoundment and the seep a-ea on the bank of the Rito Seco. <br />The R/O unit continues to perform very efficiently. The facility only operates a few days a week. In order to <br />maintain the required groundwater elevation in the backfill material, the operator continuously pumps two of <br />the monitoring wells in the west pit. When the R/O unit is not running the water is pumped to the lined pond north <br />of the facility (pond #1). When the unit is operating, water is pumped from pond number 1 and the capture <br />wells. Currently, about i 90 GPM needs to be extracted from the West pit aquifer to maintain the required water <br />level. <br />The mill building is being demolished. Currenty, the sag mill is being disassembled and will be removed in the <br />next couple of months. The operator plans to remove all the structures within the mill facility footprint over the <br />next few months. Affer removing the structures, the area will be regraded, topsoiled and seeded, thereby <br />completing reclamation requirements in the mill area. <br />Side castings of the access road have been pulled back and leveled. The area was topsoiled and seeded a <br />couple of years ago (Inter-seeded last year). Vegetative growth looks strong. <br />The in-creek retention system (drop structure and rflled areas) needs to be cleaned out and the rills repaired. <br />The fallings Impoundment size has not changed since last year. R/O sludge is still being deposited on the <br />southeast corner of the pond. The material is placed in an excavated pit and covered with overburden and <br />topsoil. Vegetation in the Impoundment looks excellent. The vegetated areas will be irrigated once again this <br />year with the existing pivot system (this should reduce the water level in the pond). <br />The seep area continues to remain dry. <br />Did not observe any significant problems at this site. <br />I & E Contact Address <br />NAME: <br />OPERATOR: Battle Mountain Resources. Inc. <br />STREET: P.C~. Rnx 310 <br />CITY/STATE/ZIP: Snn I uic Cn_ R7 1.59 <br />Harry Posey (e-mail) <br />cc: r CE <br />r BL <br />r Fs <br />r HW <br />r HMWMD (CH) <br />r SE <br />r WQCD (CH) <br />r OTHER <br />