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iii iiiiiiiiiiiiiiii ~ STATE O~ COIIORADO DIVISION OF MINERALS AND GEOLOGY Depanmenl ul NaW ml Resources 13135hcrman SL. Room 21$ Denver, Culor,~do BU?03 = Vhnne: (3031 M6fi-3567 FAX. (lull B3?-RIU6 August 22, 1997 Ron Zumwalt Battle Mountain Resources Inc POBox~10 San Luis CO 811 ~2 Re: Tailings Impoundment Reclamation Evaluation, San Luis Project, M-83-112 Dear Mr Zumwalt: I~~ DEPARTMENT OF NATURAL RESOURCES Roy Romer Governor dames 5. Lochhead E.rcuhve DveUO. Michael B. long D~v~sion Director Abatement requirement #8 of the 1992 NOV required BMRI to reevaluate the tailings chemical constituency (from the Dodson layer) in order to determine whether the excursion from permit cyanide standards had resulted in a change in the taitings character. If the anticip ted chemical constituency (approved in the 1989 amendment) of the tailings and interstitial fl tds were to change, it might necessitate an amendment to the final reclamation plan for the t flings impoundment. In May, 1993, BMRI submitted a two volume reclamation evaluation review toP~°rt. After review, the Division sent BMRI a letter which, very briefly, stated that the core lEole sampling completed by BMRI was inadequate and did not represent the entirety of the tail~ngs in place. The Division asked BMRI to drill three more core holes in the lower impoundment. As reported in BMRI's October, 1993 response, additional tailings samples were collected frlom three drill holes which were completed in September, 1993. However, neither the location bf the wells nor the results of the lab analyses were ever reported to the Division; even afrer requesting the data in Mazch, 1996. This is the last abatement item for the 1992 NOV. Since a modification of the reclamation plan (of the tailings impoundment) may be involved, and because reclamation of the Railings impoundment has already started, the Division will require BMRI to submit thel final comprehensive report and proposed reclamation modification (if any) within 301 days of the date of this letter. Review of the final report will take several weeks so, if a modification of the reclamation plan is required, BMRI may want to reconsider its current plans to begin reclaiming the tailings impoundment. BMRI should be aware that the Division will not release any portion of the finalncial warranty or permit area until the 1992 NOV has been abated. If you have any questions, please give me a call. I will be out of the office front August 29, 1997 to September I5, 1997 so, you may direct your calls to James Stevens or Bruce Humphries.