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S <br />BATTLE MOUNTAIN RESOURCES, INC. <br />Mazch 17, 2004 <br />Mr. Jim Dillie <br />State of Colorado <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />REGEIVE~* <br />MAR Z Z 2004 <br />Dirisien of Mineralsapd Geu~,:yy <br />Re: Battle Mountain Resources, Inc. <br />San Luis Mine Project <br />CMLRB Permit No. M-88-1 ]2 <br />2003 Annual Report <br />Dear Mr. Dillie: <br />The following summarizes calendar year 2003 Battle Mountain Resources, Inc. (BMRI) operation <br />and reclamation activities at the San Luis mine. <br />Operatio n/Reclamatio n <br />Calendar Year 2003 reclamation activities included: <br />• Surface water (i.e., stormwater) management on and adjacent to reclaimed and un- <br />reclaimed mine land disturbance areas. Bi-annual stormwater inspections and <br />maintenance was conducted at the site during 2003. <br />• Water treatment management of the West Pit and Rito Seco alluvial goundwater <br />systems. <br />• Tailing facility supernatant pond water management. <br />• Surface and groundwater monitoring, and <br />• Reseeding of 34.96 acres of mine land disturbance reclaimed in 2003. <br />Field surveys of the BMRI mine land disturbance and reclamation activities was completed by <br />Telesto Solutions, Inc. in 2002, subsequently 391.9 acres of the 509 acres of project disturbance <br />has been reclaimed in accordance with the approved CMLRB reclamation plan as of the end of <br />2003. The attached 2003 status map depicts the current site reclamation status and remaining <br />reclamation requiring to be completed. As depicted on the map and Table 1 contained within the <br />text of this report, the remaining reclamation obligation is associated with the ongoing West Pit <br />water treatment plant operation; the mill/crusher facility demolition, removal and reclamation; the <br />tailing disposal area water management and reclamation; access roadway reclamation; and <br />remaining topsoil stockpile storage area reclamation. <br />P.O. Box 310 San Luis, Colorado 81152-0310 (719) 379-0798 Fax (719) 379-0713 <br />