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• <br />STt~TE OF <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />1717 Sherman $I., Room 215 <br />Denver, Colorado 80203 <br />Phone: (3071 8663567 <br />FAX: (3071 872-8106 <br />December 26, 1996 <br />Sally Kaiser <br />Battle Mountain Resources Inc. <br />P.O. Box 310 <br />San Luis, CO 81152-0310 <br />RE: Battle Mountain Resources Inc., San Luis Project, Permit No. M-8$-112 <br />Dear Ms. Kaiser: <br />~~ <br />DEPARTMENT OF <br />NATURAi <br />RESOURCE <br />Roy Romer <br />Governor <br />dames 5. Lochhead <br />Executive DlreClor <br />Michael B. Long <br />Drcisian DireClnr <br />On December 13, 1996 we conducted an inspection of your mine and foundt several holes <br />and/or seperated welds in the bottom of leach tanks NS and /17 which may havq allowed an out <br />of contairunent dischazge of cyanide. <br />We believe this is in violation of: C.R.S. 34-32-124 for failure to comply with the conditions <br />of the approved permit. <br />Therefore, we have found reason to believe a violation exists to Permit M-88-1112 and the Law <br />and have scheduled this matter before the Mined Land Reclamation Board. <br />A Formal Public Hearing will be held during the February 26-27, 1997 Bo rd meeting for <br />consideration of possible violation. The hearing will be held in Room 318 0 1313 Sherman <br />Street, Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as th•; matter can be <br />considered and you will have the opportunity to be represented and heard. <br />If the Board finds a violation at this hearing, it may issue a cease and desist ord r, assess a civil <br />penalty in the amount of 100.00 to 1 000.00 for each day of violation an~ may order the <br />permit be suspended, modified or revoked. In addition it may set the matter fhr consideration <br />of forfeiture of the $6.100.000.00 financial warranty at a subsequent hearin~. If you have <br />evidence indicating that the possible violations noted above do not exist or havelbeen corrected, <br />please provide it to us as soon as possible or bring it to the hearing. <br />