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8RTT1~ MTN. GOLD SL ~:719-672-3363 RUG~4'93 1~2~59 IIIIIIIII~IIIIIIIII IinTll.t: MUUN'fAIN Ri:SnllkCl:S, 1NC. August 2, 1993 Dr. Harry Posey Division of Minerals and Geology 1313 Sherman Street, Room 215 Denver, Colorado 80203 Post-It° brand tax transmltfal 767'1 IY or p^yss ~ nt 1.+(xlNwn ~(xD COMPANY Re:. Battle Mountain Resources, Inc. (BMRI) - San Lu~.s DMG Permit No. M-88-112 Third Party sampling Uear Dr. Posey: !inclosed is a copy of invoice 11572 to Battle Mot~nta'n Resources, Inc. from RCG/Hagler, Bailly, Znc. 1RCG) or the billing period ending June 30, 1993 for your review.! BMRI requests a copy of the invoice detail. once again the coatract clearly appears to be headed toorards an overrun situation. This issue was first brought o your attention in a February 23, 1993 letter and outlined again in an April 21, 1993 letter (both letters were from en Kluksdahl-BMRI t0 Harry Posey-DMG). Through June 30 BMRI has been invoiced for $17,098.47. These costs repre~cnt 67% of the total revised contract price of $25,488 yet r Elects less than 50$ of the total work to be completed. At the present rate of expenditure, the projected total cos s will exceed $35,000 over twice the original contract pri.c . This issue is compounded by the apparent lack of co fitment on the part of RCG to complete the contract in a t.im ly manner and to follow the revised MOU and the origins contract. After the original Mou was violated in Ja uary, special provisions were incorporated into the revise Mov so that the required sampling events during the first a d second time periods had been completed; the sampling frequency for the first period was reduced from thre visits down to one, and the second sampling period was exte ded. All involved parties agreed to the revised time sche ule for the third and fourth time periods. Sampling activit'es once again have not been performed as per the specified s'te visit schedule as agreed to in the signed, revised M u. Two site visits were to be completed during the third tine period - May through July; only one visit was made. Prior to the end of the third period, no attempts were mad on the part of RCG to schedule a second site visit nor was MRI or the Division notified of scheduling difficulties by CG. BMRI contacted the Division prior to the final bi-we kly sampling event of the third period to express concer about the third party sampling schedule. I v 11•lp: 1f9 rY /: l l'i l f f1, .: \ ::n br •: a t i, Vr~N I' 1`11. I<f)\~I I~ \~\\1.111..1!1 ill<:11 ~1. !11!'11:111 ,'1.111•: ~~~„•_ I'~\\~1•,. 1."-; :1.,1