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<br />BATTLE MOUNTAIN RESOURCES, INC. <br />March 20, 2003 <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 4 2003 <br />Subject: Battle Mountain Resources, Inc. (BMRI) -San Luis <br />Division of Minerals and Geology <br />CMLRB Permit No. M-88-112 <br />2002 Annual Report <br />Dear Mr. Dillie: <br />The following summazizes calendaz year 2002 Battle Mountain Resources Ina (BMRI) <br />operation and reclamation activities at the San Luis Mine. <br />OaerationBeclamation <br />Calendar year 2002 reclamation activities included: <br />• surface water (i.e., stormwater) management on and adjacent to reclaimed and <br />unreclaimed mine land disturbance areas, <br />• water treatment management of the West Pit and Rito Seco alluvial groundwater <br />systems, <br />• tailing facility pond water management, <br />• surface water and ground water monitoring, and <br />• reclamation of 34.96 acres of mine land disturbance associated with the main <br />haulage roadway, South Waste Rock Facility, mine equipment parking ditch, mine <br />equipment fuel fazm, and the mine equipment parking ditch topsoil stockpile. <br />BMRI commissioned Telesto Solution Inc. to survey all remaining mine and beneficiation <br />facility related land disturbances at the mine site. BMRI's intent in commissioning this <br />survey was reconciliation of the remaining reclamation obligation. As a result of this field <br />survey, a total of 391,9 acres of the 509 acres of project disturbance was identified as being <br />reclaimed in accordance with the approved CMRLB reclamation plan as of year-end 2002. <br />As presented on the attached 2002 Reclamation Status map, the remaining reclamation <br />obligation is associated with the ongoing West Pit water treatment plant operation; the <br />crusher/mill facility demolition, removal and reclamation; the tailings disposal area water <br />management and reclamation; numerous access roadway reclamation and remaining topsoil <br />stockpile storage area reclamation. This field survey identified a discrepancy between <br />previously reported acreage's and the surveyed acreage. Review of previous reporting and <br />EO. Box 310 • San Luis, Colorado 51152-0310 • (719) 379-0798 Far (719) 379-0713 <br />