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BATTLE MOUNTAIN RESOURCES, INC. <br />March 19. 2002 <br />Mr. Jim Dillie / <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RECEIVED <br />MAR 2 2 2002 ~ / <br />Uiuision of Minerals and Geology <br />Subject: Battle Mountain Resources, Inc. (BMRI) -San Luis P2O~"-~"~ L/ <br />CMLRB Permit No. M-88-112 --'~ <br />2001 Annual Report <br />Dear Mr. Dillie: <br />The following summarizes calendar year 2001 Battle Mountain Resources Inc. (BMRI) <br />operation and reclamation activities at the San Luis Mine. <br />Operation/Reclamation <br />Reclamation activities were confined to surface water (i.e., stormwater) management <br />on and adjacent to reclaimed and unreclaimed surface land disturbance areas, water <br />treatment management of the West Pit and Rito Seco alluvial groundwater systems, <br />tailing facility supernatant and collection pond water management, surface water and <br />ground water monitoring, and project reclamation planning. As reported in the 2001 <br />annual report, 401 acres of the 509 acres of actual surface land disturbance has been <br />reclaimed in accordance with the approved CMLRB reclamation plan. The remaining <br />reclamation is associated with the ongoing West Pit water treatment plant operation <br />(i.e., West Pit, tailing facility, roadways), the crusher/mill facility demolition and <br />removal, and isolated sections of waste rock facilities and storage stockpile areas. <br />Contractual negotiations for the demolition, removal and reclamation of the <br />crusher/mill facilities were initiated during calendar year 2001 with SLV Earthmovers <br />Inc. Finalization of these negotiations and contract award is expected to be completed <br />by early spring (i.e., March, April) 2002. It is anticipated the completion of <br />dismantling, demolition, removal and reclamation activities will require up to 2 years. <br />Primary roadway surfaces providing access to the crusher/mill facilities have been <br />maintained in their operational configuration to allow transport equipment removing <br />the crusher/mill components ample transportation corridors. These roadway surfaces <br />will be reclaimed following the crusher/mill site reclamation. <br />P.O. Box 310 San Luis, Colorado 81152-0310 (719) 379-0798 Fax (719) 379-0713 <br />