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<br />~ III IIIIIIIIIIIIIIII r - ~ <br />STATE OF COLORADO <br />MINED LAND RECLAMATION DIVISION <br /> <br />Department of Natural Resources <br /> <br />1313 Sherman St.. Room 215 aF.~o~ <br />~_ • op <br />ti /,> <br />~e~i l• \~1g <br />Denver, CO 80203 • <br />' <br />• <br />303 866.3567 • <br />` <br />~ <br />e <br />RA X: 303 832-e106 ra 76 <br /> Roy Romer. <br /> Governor <br />DATE: OC tob er 9, 1990 Fretl R. Banta. <br /> Division Director <br />T0: Ron Cattany, Executive Dir~r~~bffice <br />RE: Battle Mountain Resources, San Luis Project (File M-88-1~i21 <br />FROM: Steve Renner. <br />Battle Mountain Resources holds an approves regular operations reclamation <br />permit. This permit was issued by the Mined Land keclamation Board on <br />March 23, 1989. The permit was subsequently amended on January 25, 1990. The <br />amendment allowed the ore to be processed in a more environmentally sound <br />manner. <br />The San Luis Project is a gold mining operation which will employ up to 94 <br />people when it becomes fully operational. The mining facility will consist of <br />teo open pits, waste rock disposal sites, a mill facility and suba~erial <br />tailings storage facility. <br />The operator will develop an east and a west pit. Barren rock from the west <br />pit will be used to backfill the east pit. Ore from both pits will be <br />processed through a caroon-in-leach mill tacility. Tne carbon-in-leach <br />process utilizes a sooium cyanide solution to extract gold from the ore. The <br />sodium cyanide solution removes the gold from the ore within pressurizes <br />vessels. The vessels are all located within an enclosed building, built on a <br />cement foundation. After the gold is extracted, the cyanide concentration <br />within the tailings, or reject material, is lowered to a maximum of 5 parts <br />per million. The tailings are then transported via a pipeline to the tailings <br />disposal facility. The tailings facility is alined detention 'structure <br />designed to contain the tailings material. The liner minimizes the chance of <br />ground water contamination occurring. <br />Baseline environmental information was collected by the applicant atnd reviewed <br />by Division staft prior to permit issuance. Water quantity and quality data <br />and the geochemical characteristics of the ore and waste rock were evaluated <br />by Division staff. The mining and reclamation plans were thorough"'y evaluated <br />by Division staff during the permitting process. After reviewing till <br />pertinent data and plans, the staff determined that the proposal would <br />minimize impacts to surface water, ground water and other natural resources. <br />The Division anticipates that the cost to reclaim this site at its point of <br />maximum disturbance would be E2,052,000.00. This amount of financial warranty <br />(reclamation bond) has been submitted by Battle Mountain Resources and is held <br />by the State. <br />