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San Luis Project <br />CDMG Annual Report <br />March 29, 2005 <br />Page 2 <br />management and reclamation; access roadway reclamation; West Pit reclamation, and remaining <br />topsoil stockpile storage area reclamation. <br />Reclamation/closure cost estimates were comprehensively reviewed with Division during <br />calendar year 2001. The existing financial surety ($7,400,000) appears more than adequate to <br />complete the remaining surface land reclamation, fulfill surface and ground water monitoring <br />obligations, and complete water treatment operations associated with the West Pit and Rito Seco <br />alluvial ground water systems. Since 2001, substantial additional reclamation work consisting of <br />34.96 acres was completed in 2002 and 21.5 acres was completed in 2005 reducing the quantity <br />of mine land reclamation required to complete the Project, and the following quantities of West <br />Pit and Rito Seco alluvial groundwater were extracted, treated and discharged to Rito Seco Creek <br />in 2002 (127,985,600 gallons - 392.8 acre-feet), 2003 (128,173,000 gallons - 393.36 acre-feet), <br />2004 (127,061,200 gallons -389.96 acre-feet), and 2005 (125,798,300 gallons, 386.08 acre-feet). <br />In addition, the Division determined in 2005 that the West Pit water quality has returned to <br />comparable water quality of the pre-mining conditions. Since, no financial surety reductions have <br />been requested since the 2001 comprehensive review, the existing financial surety should be more <br />than adequate to complete the remaining site reclamation and closure obligations. Should the <br />Division desire to formally review the surety estimate, BMRI will supply any information <br />necessary and assist any manner necessary. <br />Areas of Disturbance/Reclamation <br />Table 1 below summarizes the San Luis Mine Project areas of disturbance and reclamation. The <br />attached map depicts the remaining areas of disturbance. <br />Site Monitoring and Reporting <br />Quarterly water sample collection and analysis was conducted in accordance with TR-06, TR-15, <br />TR-26, TR-31 and TR-32, and the TR-32 monitoring program and QA/QC Plan. Laboratory <br />analytical reports were transmitted to the Division upon receipt from the laboratory. <br />Monthly surface water, ground water and process point water sampling was conducted in <br />accordance with the applicable technical revisions. Piezometer water level measurements were <br />conducted throughout the year in accordance with the permit Frequency presented in the <br />applicable technical revision plan. Laboratory analytical reports were transmitted to the Division <br />upon receipt from the laboratory. <br />Table 1-San Luis Project Mine Land Disturbance <br />Area Permitted <br />Disturbance <br />acres Actual <br />Disturbance <br />acres Completed <br />Reclamation <br />acres Remaining <br />Reclamation <br />acres <br />East Pit 20 20 20 0 <br />West Pit l 10 100 71.3 28.7 <br />Waste Rock A 0 0 0 0 <br />Waste Rock B 18 18 18 0 <br />