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~~, sss BATTLE MOUNTAIN GOLD COMPANY r' November 12, 1990 ~~T 3 ! 1991 Mined sand Re~iama}ion Divis on Dear Battle Mountain Employee: I'd like to take a few moments to answer a number of frequently re-occurring questions about the San Luis Project. During the development phase, a few parties who oppose the project have raised various objections, and many rumors are spreading through the community concerning the project. First, let me assure you that our project has been carefully reviewed by state agencies and the federal government to insure that it is safe and sound. The project has been developed for over two and a half years with the help of world-recognized experts in mining and environmental protection. We are convinced that the result of our efforts will be the finest project of its kind, which will be a credit to Battle Mountain, Costilla County, and you, our employees, who are the key ingredients in its success. I wanted to take this opportunity to set the recox•d straight and respond to the rumors and misinformation raised by project opponents. Please take a few minutes to read the rest of this letter. 1. How will the project impact important water resources of the area? We understand how important water is to the way of life in the San Luis Valley. That is why the San Luis Project has been carefully designed by experts to specifically protect the water resources of the valley. Some of the more important protective measures are described below. 2. To what extent will the Rito Seco Creek be damaged or polluted? we have intentionally designed our operations to avoid mining impacts on Rito Seco. For example, the mill and tailings disposal area are located out of the Rito Seco drainage even though this location requires additional costs because of the longer haul to the mill. Looking at gullies outside our project, such as on the Forbes properties, you can see how