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BATTLE MOUNTAIN RESOURCES, INC. <br /> <br />August 10, 2010 <br />Mr. Allen Sorensen <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />AUG 12 2010 <br />Divisian a :r ?a;ion, <br />k9ning erd Safatj <br />Re: Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. M-88-112 <br />July 2010 Monthly Report <br />Dear Mr. Sorensen: <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of July, 2010. <br />Surface and ground water monitoring and analysis were completed for all required sites during the month <br />per the terms and conditions of the TR-32 Quality Assurance and Quality Control (QA/QC) plan. <br />Vacuum on the tailing lysimeters was verified on July 29th, no water was present for sampling and <br />subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and the West <br />Pit monitoring wells on July 29th. July tailing impoundment piezometer measurements identified these <br />installations were either dry or contained less than 12 inches of water as illustrated in Table 2. Tables 1 <br />and 2 below identify the depth to water measurements collected for each of the site monitoring wells, <br />piezometers and lysimeters as required by the terms and conditions of the TR-32 QA/QC plan. <br />The leak detection system was measured on July 30th. A total of 580 gallons of water was excavated from <br />the leak detection system yielding a monthly average of 20 gpad. The tailings pond under-drain measured <br />24 gpm. <br />During July the West Pit water treatment plant operated efficiently discharging a total of 7,798,600 <br />gallons (23.93 acre-feet) of water to Rito Seco Creek and a total of 1,156,200 gallons ( 3.55 acre-feet) of <br />water was transferred from the water treatment plant to the tailings impoundment. Seepage along Rito <br />Seco Creek remained dry during the month. <br />P.O. Box 310 • San Luis, Colorado 81152-0310 • (719) 379-0798 • Fax (719) 379-0713