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San Luis Project <br />CDMG Annual Report <br />March 23, 2008 <br />Page 2 <br />Reclamation/closure cost estimates were comprehensively reviewed with Division during <br />finalization and completion of Technical Revision 26 in calendar year 2001. The existing <br />financial surety ($7,400,000) appears more than adequate to complete the remaining surface land <br />reclamation, fulfill surface and ground water monitoring obligations, and complete water <br />treatment operations associated with the West Pit and Rito Seco alluvial ground water systems. <br />Since 2001, additional reclamation work consisting of 34.96 acres was completed in 2002 and <br />21.5 acres was completed in 2005 reducing the quantity of mine land reclamation required to <br />complete the Project, and the following quantities of West Pit and Rito Seco alluvial groundwater <br />were extracted, treated and discharged to Rito Seco Creek in 2002 (127,985,600 gallons - 392.8 <br />acre-feet), 2003 (128,173,000 gallons - 393.36 acre-feet), 2004 (127,061,200 gallons - 389.96 <br />acre-feet), 2005 (125,798,300 gallons, 386.08 acre-feet), 2006 (116,539,400 gallons, 357.67 <br />acre-feet) and 2007 (114,682,700 gallons, 351.97 acre-feet). In addition, the Division determined <br />in 2005 that the West Pit water quality has returned to comparable water quality of the pre-mining <br />conditions. Permit Amendment #2 was submitted in late 2006 and withdrawn in 2007 to <br />incorporate public comments and suggestions received during the public comment period. Permit <br />Amendment #3 was submitted in November 2007 for the construction of a water management <br />system using the West Pit water at the Newmont Reality Company adjoining ranch. Since, no <br />financial surety reductions have been requested since the 2001 comprehensive review, the <br />existing financial surety should be more than adequate to complete the remaining site reclamation <br />and closure obligations. Should the Division desire to formally review the surety estimate, BMRI <br />will supply any information necessary and assist in 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 110 100 71.3 28.7 <br />Waste Rock A 0 0 0 0 <br />