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John C. Halepaska and Associates, Inc. <br />Consulting Ground Water Engineers <br />333 West Hampden Avenue. Suite 803 <br />Englewood, Colorado 80110 <br />(303) 761-0020 <br />1 <br /> <br />' January 26, 1989 <br />1 <br />Battle Mountain Gold Company <br />' MCorp Plaza, Forty-Second Floor <br />333 Clay Street <br />Houston, Texas 77002 <br />Attn: A. Walter Wise, Esq. <br />Senior Counsel <br />' Subject: Falling Head Permeability Tests Conducted on Boreholes <br />in the Rito Seco Alluvium and the Santa Fe Forrmation, <br />San Luis Gold Project, Costilla County, Colorado. <br />' Project No. 5150 <br />' Dear Walt: <br />As requested, we have conducted falling head permeability tests <br />(slug tests) at the 3 boreholes completed by SRK in the vicinity <br />' of the south face of the west pit wall.. We understand that one <br />monitoring well is completed in the Santa Fe Formation (G-1), and <br />two are completed in the Rito Seco alluvium (G-2 and G-3). It is <br />our understanding that well G-2 is located approximately 15 feet <br />east of well G-1, while well G-3 is located approximately 100 <br />feet north of well G-l. <br />Prior to performing the slug test, each of the wells was bailed <br />to evaluate whether all of the drilling fluid had been removed <br />from the well casing. The bailing operation indicated that there <br />' were no residual drilling fluids in the boreholes. <br />Each of the wells was slugged and a Hermit environmental logger, <br />which automatically records water level change, was used to <br />record water level declines versus time. The water leve:i decline <br />versus time data for each of the slug tests are presented in <br />Appendix A. Graphical representations of these data for each <br />well are presented in Figures 1 through 3. <br />The data from these tests were analyzed using two apF~roaches. <br />The first method used a computer curve-matching program and the <br />