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Mov 13 O1 10:50a Idarado Mining 9703254481 p.2 <br />BATTLE MOUNTAIN RESOURCES, INC. <br />November 11, 2001 <br />Mr. James Dillie <br />Enviromneutal Protection Specialist <br />State ot` Colorado <br />Division of Mi»erals and Geology <br />1313 Sherman Street, Room 215 <br />llenver, CO 80203 <br />Re: Battle Mountain Resources Inc. <br />Permit No. M-1988-112 <br />Water Treatment Plam <br />Contractual Operating Costs <br />Dear Mr. Dillie: <br />As discussed with you ott Thursday, November 8, 2001, I present the following Battle Mountain <br />Resources lnc. -San Luis Project water treatment costs. The current water treatment cost per thousand <br />gallons of water treated is $ 5.25 per thousand gallons of water treated. "This cos[ reflects al] current <br />operational cost components under the contract with SLV Garth Movers, lnc. and various other service <br />suppliers. This cost per thousand galluus of water treated include cost components for each of the <br />following items: <br />- Contractual labor (6 operators and 1 supervisor from SLV Eartlt Movers, Jnc.) ,SLV Earth Movers, <br />htc. administrative costs, small hand-tool and equipment rental (i.e.. backhoe, pick-up u'ucks) from <br />SLV Earth Muvers, lnc., <br />- Electrical costs for West Pit and San Luis alluvial groundwater pumping, water treatment plant <br />operation, xnd tailing water management, <br />- Water treatment plant chemical reagent (i.e., soda ash, hydrochloric acid, sodium h~~droxide, lime, <br />tnetttbrane cleaning solutions) purchase and delivery, <br />- Water treatment plant O/M (i.e., supplies and repair), <br />- Technical assistvtce and licensing with a State of Colorado Department of Public Health and <br />Environment certified Class A water treatment plant operator (Rogers and Associate;), and <br />- Atmual CDPS permit fees to the State of Culorado Department of Public Health and Em~trorunent. <br />Should you have any questions or require any clarifications relating to this correspondence, please contact <br />me at either (970) 325-4482 or (970) 729-0461. <br />Si cerely,~ <br />,. t <br />Direu r of Euv. Affairs <br />Cc: David Long <br />Jint Finley <br />