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October 8, 2013 <br />Mr. Wally Erickson <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 8020' <br />Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. M -88 -112 <br />September 2013 Monthly Report <br />Dear Mr. Erickson: <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of September, 2013. <br />Surface and ground water monitoring and analysis were completed for all required sites during the month <br />per the terms and conditions of the TR -32 Quality Assurance and Quality Control (QA /QC) plan. <br />The M -14 well water sample collection program has begun as outlined in the Response Plan which was <br />approved on September 16`h. The Response Plan was submitted in accordance with TR -32 in order to <br />evaluate the elevated Total Dissolved Solid (TDS) associated with this well. <br />Vacuum on the tailing lysimeters was verified on September 30`h, no water was present for sampling and <br />subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and the West <br />Pit monitoring wells on September 30`h. September tailing impoundment piezometer measurements <br />identified these installations were either dry or contained less than 12 inches of water as illustrated in <br />Table 2. Tables 1 and 2 below identify the depth to water measurements collected for each of the site <br />monitoring wells, piezometers and lysimeters as required by the terms and conditions of the TR -32 <br />QA /QC plan. <br />The leak detection system was measured on September 30`h. A total of 765 gallons of water was <br />excavated from the leak detection system yielding a monthly average of 25.5 gpad. The tailings pond <br />under -drain measured 33gpm. <br />During the month of September, the West Pit water treatment plant operated efficiently discharging a total <br />of 7,023,200 gallons (21.55 acre -feet) of water to Rito Seco Creek and a total of 2,448,800 gallons (7.52 <br />acre -feet) of water was transferred from the West Pit to the tailings impoundment. Seepage along Rito <br />Seco Creek remained dry during the month. <br />