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~ III IIIIIIIIIIIIIIII <br />w <br />R~~~IVE® <br />BEFORE THE COLORADO MINED LAND RECLAMATION BOARD JAN 231990 <br />MINED LAND <br />STATE OF COLORADO RECLA'.MATION DIVISION <br />PREHEARING STATEMENT OF BATTLE MOUNTAIN RESOURCES INCORPORATED <br />IN THE MATTER OF BATTLE MOUNTAIN RESOURCES <br />File No. M-88-112 <br />Background <br />On March 22, 1989, the Colorado Mined Land Reclamation Board <br />("CMLRB") approved a reclamation permit for the San Luis project <br />to be operated by Battle Mountain Resources, Incorporated (Battle <br />Mountain). Battle Mountain submitted financial warranty in the <br />amount of $3,300,300.00 and the reclamation permit was subsequently <br />issued. (Permit No. M-88-112). That permit contemplated the <br />construction of an open pit mine facility, associated waste rock <br />dumps, roads and other facilities to support the extraction and <br />beneficiation of approximately thirteen million tons of gold ore <br />from the site. The beneficiation scheme contemplate~~9 by that <br />permit included processing approximately one half oi`' the ore <br />through a conventional mill circuit with the remainder to be <br />subjected to cyanide heap leach gold recovery technology. <br />Since approval and issuance of the reclamation permit, Battle <br />Mountain has conducted limited construction work focused primarily <br />on the construction of the access roads and mine related support <br />facilities. As of this date, Battle Mountain has not commenced <br />construction of the mill facilities, the cyanide heap leach <br />facility nor has mining activity commenced at the site. In <br />addition, Battle Mountain has continued its analysis and evaluation <br />