Yes and no. Burt dropped it in front of the tractor in which he took cover from the Shriekers. The whole area was turned into a crater in the big blast. However, Burt, knowing that his rifle is a massive, tough chunk of stainless steel, figured it might have survived. Plotting its approximate trajectory from the blast site, he searched laboriously through the rubble and finally recovered the rifle. Cleaned up and re-barreled, it appeared again in Tremors 3.
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