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' Mill Facilities Milling began by further reducing the size of material received from the crusher. The ' grinding circuit consisted of asemi-autogenous grinding mill and a ball mill that rendered ore to the consistency of a fine silty sand. Ore was then introduced into acarbon-in-leach ' circuit where the precious metal was extracted. This milling circuit produced tailing in a slurry form. The tailing was neutralized using an INCO SOZ/ air cyanide neutralization ' circuit. Tailing was then pumped to the tailing disposal area for storage and dewatering. _ The mill Facilities were designed with a number of safety features to provide zero discharge from the mill including internal curbing and sumps, back-up pumps, and warning systems. In addition, all facilities in the mill area and the area surrounding the mill were graded to drain to the tailing facility as a means of tertiary containment. The mill facilities have been decommissioned since the completion of mining and beneficiation operations and currently await mill equipment/structure dismantling and reclamation of the azea. Reclamation shall include the dismantling, demolition and removal of structures and milling related equipment. Structure foundations will be broken and buried on-site. The area will be ripped to alleviate soil compaction, countoured, topsoiled, and vegetated. Tailing Disposal Area The tailing disposal area is approximately 192 acres in area and is located south of the mill facility (Figure 1). The facility consists of the main tailing disposal area and the collection pond located to the west of the facility at the embankment toe. Tailing solution pumped to the disposal area from the mill was approximately 46 percent water and 54 percent solids. Tailing were deposited using the rotational, thin layer deposition technique. This technique deposited tailing in layers several inches thick rotating around the facility perimeter allowing the material to dry before placement of the next layer. Water within the tailing shiny was either collected from the tailing surface in a central water pool (i.e., supernatant pond) or in the underdrain system that conveyed, and continues to convey, the water to the lined collection pond at the embankment toe. The collected water was and continues to be pumped back to the supernatant pond. During operations, this water was used as mill make-up water. Currently water returned to the Battle Mountain Resources, lnc. Telesto Solutions, /nc. ,a~ mu au.mo.+rer ma~ageme~,omn.ea 7 May 3, 2001