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<br />III IIIIIIIIIIIIIIII <br />~~~n~ <br />GUDCV.pvr~ <br />San Luis P~o~ect News <br />Spring 1990 Informa[ton on the San Luis Project. Costilla County. Colorado <br />SAN LUIS PROJECT UPDATE <br />Plant Construction Preparations Are Under Way <br />Battle :Mountain Guld is prepar- <br />in~~ for construction of the processing <br />plant for the San Luis Project. Battle <br />Mountain hopes [he plan[ will be up <br />and running in early 1991. <br />The Industrial Company (TICI <br />of Steamboat Springs. Colorado, has <br />opened an office in San Luis and has <br />bey:un interviewing local job pre- <br />applicants. TIC is on line to build the <br />processing plant. pendine finalization <br />of the construction contract. <br />Gary Dodson, San Luis Project <br />acneral superintendent, said T1C's <br />interviewing will help identify a <br />potential construction work force. <br />"Unfortunately we won't be <br />able to hire even person in Costilla <br />County who has applied for a job. <br />There just aren't enoueh jobs. Bu[ we <br />will try to hire has menu people as we <br />know how," Dodson said. <br />Since earlier this year, Battle <br />Mountain Gold has taken several steps <br />to pave the way for plant construction. <br />Minproc Engineers of Denvercon- <br />ducted detailed engineering work on <br />the plant itself and has prepared the <br />construe[ion drawings. Battle Moun- <br />tain also has specified and is in the <br />process of procuring equipment for <br />the processing plant. <br />Dodson said he is makine every <br />effort to arrange for plant equipment <br />to be delivered FOB the San Luis <br />Project site in Costilla County. This <br />will protect Battle Mountain's inter- <br />ests during transportation of the <br />equipment and allow the purchases to <br />he taxed within the State of Colorado. <br />PERMIT AMENDMENT <br />APPROVED <br />Progress on the San Luis Project <br />in 1990 began wi[h the approval of the <br />amendment to our existing permit by <br />the Colorado Mined Land Reclama- <br />tion Board (NLRB) at a hearing on <br />Januarv'_5. The amended mining and <br />reclamation permit for the San Luis <br />Project was issued shortly after the <br />hearing. <br />There were no modifications to <br />the amended plan as finally submitted <br />by Bale !Mountain. Prior to the <br />hearin_. [he plan was reviewed by the <br />NLRB technical staff and recom- <br />mended for approval. <br />During the review of Battle <br />Mountain's amendment proposal, the <br />hiLRB technical staff recalculated our <br />reclamation bond requirements on a <br />somewhat more conserva[ive basis. As <br />a result. we have now posted 53.345 <br />million to insure our reclamation <br />commitments. <br />Battle Mountain also has made <br />substantial progress on other parts of <br />the San Luis Project. Here are more <br />details. <br />Construction. Major construc- <br />tion on three "support" buildings at <br />the plant site was completed February <br />22. 1990. The buildines are the <br />combined maintenance shop and <br />warehouse, the office and the lab. <br />Power line. In early April. <br />Public Service Company of Colorado <br />began constructing the power line <br />which will serve the San Luis Project. <br />We expect the job to take a total of <br />about four months. The power line <br />will run fnm Fort Garland to the <br />project situ. <br />Substation upgrade. Public <br />Service also will have to upgrade the <br />substation at Fort Garland in order to <br />serve the fan Luis Project. The time <br />schedule for that job will depend on <br />ordering it a new transfot~rter which <br />could take 40 to 50 weeks. <br />Hiring. We hired five equip- <br />ment operators in April throagh the <br />Colorado lob Service. All of these <br />new employees arc Costilla Cuunn- <br />residents. <br />Microwave phones. We are <br />installine a microwave phone system <br />to serve the project site. It costs a little <br />more but we can serve the plant and <br />support buildines without disturbin_ <br />the around to install land lines. <br />Banking topsoil. We are con- <br />tinuing to "bank" topsoil for eventual <br />reclamatior work as we conduct <br />ground preltara[ion at the plan[ site. <br />Fencing. We will be building <br />fences this summer to protect our <br />ongoing reclamation work. The fences <br />will be boil: according to Colorado <br />Division of Wildlife standards so that <br />elk. deer and antelope still will be able <br />to mierate across our property. The <br />fences will ~e 42 inches hieh. with 15 <br />inches of cl~~arance at the bo[tom. This <br />will le[ elk and deer go over them and <br />antelope under them. There will be <br />about 10 miles of fence, total, in- <br />stalled by kcal fence builders. We <br />also are eoin~ out [o bid on the <br />ma[erials Irum local suppliers. <br />