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Y <br />BATTLE MOUNTAIN RESOURCES, INC. f <br />August 09, 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 <br />C RB Permit No. M-88-112 <br />my 2006 Monthly Repoli <br />Dear Mr. Sorensen: <br />J <br />RECEIVED <br />~G 14 2006 <br />Nlalon of Reclamation, <br />Mining and Safety <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. <br />(WHAT), San Luis Project for the month of July 2006. <br />Surface and Bound water monitoring and analysis were completed for all required sites during <br />the month per the terms and conditions of the TR-32 Quality Assurance and Quality Control <br />(Q~QC) Pian. <br />Vacuum on the tailing lysimeters was verified on July 31a, no water was present for sampling and <br />subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and <br />the West Pit and tailings embankment monitoring welts on July 31~`. July 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 />measurements collected for each of the site monitoring wells, piezometers and lysimeters as <br />required by the teens 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 July <br />31". The July tailings pond underdrain flow average was 33.75 gpm and a total of 820 gallons of <br />water was excavated from the leak detection system yielding a monthly average of 24.84 gpad. <br />During July the West Pit water treatment plant operated efficiently discharging a total of <br />7,884,900 gallons (24.20 acre-feet) of water to Rito Seco Creek and a total of 568,700 gallons <br />(1.75 acre-feet) of water was transferred from the water treatment plant to the tailings <br />impoundment Seepage along Rito Seco Creek remained dry during the month. <br />~`f <br />P.O. Box 310 San Luis, Colorado 81152-0310 (719) 379-0795 Fax (719) 379-0713 <br />