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BATTLE MOUNTAIN RESOURCES, INC. <br />June 08, 2006 <br />Mr. Allen Sorensen <br />State of Colorado <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources Inc. <br />San Luis Project i/ <br />CMLRB Permit No. M-88-112 <br />May 2006 Monthly Report <br />Dear Mr. Sorensen: <br />~ECEIVEI~ <br />~~ SUN 12 2006 <br />I/Bi~ision ~I Minerals and 6ee16xlp <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. <br />(BMRI), San Luis Project for the month of May 2006. <br />Surface and ground water monitoring and analysis were completed for all required sites dwing <br />the month per the terms and conditions of the TR-32 Quality Assurance and Quality Control <br />(QA/QC) plan. <br />Vacuum on the tailing lysimeters was verified on May 30th, no water was present for sampling <br />and subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and <br />the West Pit and tailings embankment monitoring wells on May 25`6. May tailing impoundment <br />piezometer measurements identified these installations were either dry or contained less than 12 <br />inches of water as illustrated in Table 2. Tables 1 and 2 below identify the depth to water <br />measwements collected for each of the site monitoring wells, piezometers and lysimeters as <br />required by the terms and conditions of the TR-32 QA/QC plan. <br />The tailing impoundment collection pond underdrain flow was pumped intermittently during the <br />month to minimize the collection pond level. The leak detection system was measured on May <br />3151. The May tailings pond underdrain flow average was 37.42 gpm and a total of 750 gallons of <br />water was excavated from the leak detection system yielding a monthly average of 21.42 gpad. <br />During May, the West Pit water treatment plant operated efficiently discharging a total of <br />8,925,200 gallons (27.39 acre-feet) of water to Rito Seco Creek and a total of 811,300 gallons <br />(2.49 acre-feet) of water was transferred from the water treatment plant to the tailings <br />impoundment. Seepage along Rito Seco Creek remained dry dwing the month. <br />P.O. Box 310 • San Luis, Colorado 81152-0310 (719) 379-0798 Fax (719) 379-0713 <br />lid <br />