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<br />Mr. Bruce Humphries <br />January 3, 2000 <br />Page 1 <br />1.0 INTRODUCTION <br />The Colorado Division of Minerals and Geology (DMG) issued a letter to Battle Mountain Gold <br />Company (BMG) and Battle Mountain Resources, Inc. (BMRI) on October 4, 1999 that directed <br />the company to provide "the necessary infotmatiat that will lead to the setting of [those] pemri[ <br />conditions as well as the establishment of appropriate point(s) of compliance" to protect [fte <br />quality of groundwater in the unaffected portion of the Ri[o Seco alluvial aquifer downgradient <br />of the West Pit. Further, the letter states DMG's expectation that such information would <br />include the identification of a monitoring plan to evaluate [he effectiveness of measures <br />implemented by BMRI via appropriate permit conditions and point(s) of compliance as is <br />currently required for the alluvial aquifer. <br />This document summarizes the downgradient water management plan (the "Plan") proposed by <br />BMRI to protect the groundwater in the Rito Seco alluvial aquifer downgradient Of the West Pit. <br />Topics covered in this plan include: (1) the method used to eliminate further downgradient <br />migration of groundwater affected by historic flows frotn the West Pit, (2) the water balance and <br />water handling plan associated with the Plan, (3) identifying the point of compliance, appropriate <br />permit condition values, and the monitoring plan to evaluate compliance with the appropriate <br />state regulations. <br />As contemplated in DMG's letter, the Plan described herein is necessarily linked to the water <br />management plan presented in TR-026 because the hydrologic and geochernical processes <br />affecting the quality of groundwater in the vicinity of the West Pit are part of a continuous <br />system. Thus, the control measures implemented to protect the quality of downgradient Rito <br />Seco alluvial groundwater are entirely consistent with, and ideally will enhance, the objectives of <br />the water management plan as described in TR-026. <br />2.0 WATER MANAGEMENT PLAN <br />The water management plan developed to protect the unaffected downgradient alluvial <br />groundwater consists of specific control measures to be implemented, water handling/balance, <br />