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Battle Mountain Resources Inc. <br />San Luis Project <br />Permit No. CO-0045675 <br />Compliance Schedule Report <br />July 25, 2002 <br />Page 5 <br />indicated the hydrologic flow gradient was from the Rito Seco to the West Pit and that the <br />downgradient alluvial capture system (n'I-32 and M-33) was effectively capturing <br />downgradient groundwater flows. As identified in Table 2 the average groundwater table <br />elevation in the downgradient alluvial wells was below 8540 ft amsl. This information <br />pertaining to the seepage inspection, groundwater flow direction and downgradient alluvial <br />capture system was verbally reported to the WQCD via voice mail on July 16, 2002 and <br />further discussed during a telephone conversation with Ms. Lenkey on July 19, 2002. This <br />Compliance Schedule Report transmits the results of all required inspections, <br />measurements and evaluations. <br />Table 3 below presents further data related to the effective operation and performance of <br />the West Pit and Rito Seco alluvial capture systems. This data is taken from BMRI's daily <br />logs which water treatment plant personnel measure and record groundwater elevations at <br />BF-4, BF-SR, M-32 and M-33. As identified with this data, groundwater elevations in the <br />West Pit were consistently maintained below the elevation of 8582 ft. amsl and the <br />groundwater elevations associa determinations of the groundwater flow gradients <br />associated with the two sets of data was completed by Telesto Solutions, Inc. on Tuesday, <br />July 16, 2002. The results of Telesto fed with the Rito Seco alluvial capture system (M-32 <br />and M-33) were consitently maintained below 8540 ft. amsl for the period June 1 through <br />July 10,2002. <br />It is believed the elevated Manganese concentration is associated with extreme low flow in <br />Rito Seco Creek caused by 2002 drought conditions resulting in the draining of numerous <br />beaver dams along the creek and exposure of copious quantities of oxidized Rito Seco <br />alluvial sediments containing substantial quantities of biotite mineralization. It is <br />anticipated these elevated Manganese concentrations in the creek will continue until more <br />normal precipitation patterns return and the stream water level conditions are returned to <br />near historic steady-state conditions. <br />Table 2 -June 11 and July 15, 20112 Groundwater Elevations <br />Monitoring Well <br />Identification Observation Date Groundwater <br />Elevation (tl amsl) Observation Date Groundwater <br />Elevation (Pt ams!) <br />BF-3 6/11/02 8578.19 7/15/02 8578.21 <br />BF-4 6/11/02 8578.30 7/15/02 8578.35 <br />BF-SR 6/11/02 8578.15 7/15/02 8578.19 <br />BF-6 6/11/02 8578.25 7/15/02 8578.21 <br />M-11R 6/11/02 8544.66 7/15/02 8544.60 <br />M-16 6/11/02 8600.68 7/15/02 8600.56 <br />M-17 6/11/02 8583.67 7/15/02 8583.54 <br />M-18 6/11/02 8578.76 7/15/02 8578.68 <br />M-19 6/11/02 8579.08 7/15/02 8579.97 <br />M-20 6/11/02 8579.65 7/15/02 8579.58 <br />M-21 6/11/02 8577.08 7/15/02 8576.81 <br />M-22 6/11/02 8572.37 7/18/02 8572.29 <br />M-23 6/11/02 8553.67 7/15/02 8553.57 <br />M-24 6/11/02 8557.78 7/15/02 8557.74 <br />M-25 6/11/02 Dry 7/15/02 Dry <br />M-26 6!11/02 8540.62 7/15/02 5540.25 <br />