2008-05-30_INSPECTION - M1988112

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(Page 3) MINE ID # OR PROSPECTING ID # M-1988-112 INSPECTION DATE 5/7/08 INSPECTOR'S INITIALS WHE As noted in the photos, the Operator minimized the potential for contamination of the samples by handling sample bottles and equipment with disposable latex gloves, by rinsing equipment between samples with distilled water and by triple rinsing all sample bottles and caps at the sample location prior to taking the sample. The Operator stabilized the samples by keeping them cool and by adding acid to the dissolved metals samples. The Operator utilized a 200 foot long water level meter to measure depth to water for the monitoring wells. As noted in the photos, depth to water for M-12 was greater than 200 feet. Observations made during the inspection and recorded in this report indicate that with the exception of the limitations imposed by the 200 foot water level meter, the Operator is using appropriate water sampling equipment and procedures. Given the fact that the depth to water at M-12 was greater than 200 feet on May 7th, the Division recommends that the Operator procure a water level meter longer than 200 feet. As noted above, this report is accompanied by the analytical report from the independent laboratory. The analytical report includes 18 pages of cover letter, chain of custody record and data sheets from Green Analytical Laboratories, Inc. Preliminary review of the analytical report indicates that the ground water quality at SLM-1, located down-gradient of the mine site and up-gradient of the well field for the Town of San Luis; and at SLM-2A, SLM-213, and Town 1 (Town of San Luis well 11606- F) located within the San Luis well field and down-gradient of the proposed irrigation area, are compliant with the water quality standards of Regulation 41 for all parameters analyzed by the independent laboratory. However, as previously acknowledged by the Applicant in the information submitted with AM-03, the ground water quality of the West Pit at BF-4 exceeds the water quality standards of Regulation 41 for Manganese, Fluoride and Total Dissolved Solids (TDS). Under AM- 03 the Applicant proposes to utilize untreated drainage from the West Pit for irrigation purposes on the Salazar Ranch. As noted in the Division's correspondence dated April 25, 2008, the irrigation fields of the Salazar Ranch are located in a classified area and pursuant to Hard Rock Rule 3.1.7(1)(b), must comply with the water quality standards of Regulation 41. Response to this report should be directed to the Division of Reclamation, Mining and Safety, 701 Camino del Rio, Room 315, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. I & E Contact Address cc: Tony Waldron, DRMS ? CE NAME William Lyle ? BL OPERATOR Battle Mountain Resources, Inc. ? FS STREET P.O. Box 310 ? HW CITY/STATE/ZIP San Luis, CO 81152 ? HMWMD (CH)