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,~~- • IIIIIIIIIIIIIIIIIII • <br />STATE OF <br />COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Dcpanmem of Natural Resources <br />1 313 Sherman St., Room 215 <br /> <br />Dcnvcr, Colorado 80207 I~~~~ <br />Phone: 1303) 8hG-3567 <br />FA%. (1031 R32~R 106 <br /> DEPARTMENT OF <br /> NATURAL <br /> RESOURCES <br />December 26, 1996 Roy Romer <br /> Governor <br /> <br />Sally Kaiser lames 5. Lochhead <br />Executive Director <br />Battle Mountain Resources Inc. Mlchae~ s. Eons <br />P.O. Box 310 Division Director <br />San Luis, CO 81152-0310 <br />RE: Battle Mountain Resources Inc., San Luis Project, Permit No. M-88112 <br />Dear Ms. Kaiser: <br />On December 13, 1996 we conducted an inspection of your mine and found:, several holes <br />and/or seperated welds in the bottom of leach tanks #5 and #7 which may have Hallowed an out <br />of containment discharge 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-88-1 ]I2 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 Board meeting for <br />consideration of possible violation. The hearing will be held in Room 318 of'1313 Sherman <br />Street, Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as the' 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 order, assess a civil <br />penalty in the amount of 100.00 to 1000.00 for each day of violation and Imay order the <br />permit be suspended, modified or revoked. In addition it may set the matter fok consideration <br />of forfeiture of the $6.100,000.00 financial warranty at a subsequent hearing, If you have <br />evidence indicating that the possible violations noted above do not exist or have lbeen corrected, <br />please provide it [o us as soon as possible or bring it to the hearing. <br />