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BATTLE MOUNTAIN RESOURCES, INC. W <br />February 09, 2011 <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 />Re: Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. M-88-112 <br />January 2011 Monthly Report <br /> <br />d- <br />'] i <br /> <br /> <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 January, 2011. <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 January 31", 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 January 31s`. January tailings impoundment piezometer measurements identified <br />these installations were either dry or contained less than 12 inches of water as illustrated in Table 2. <br />Tables 1 and 2 below identify the depth to water measurements collected for each of the site monitoring <br />wells, 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 January 31". A total of 630 gallons of water was excavated <br />from the leak detection system yielding a monthly average of 20.32 gpad. The tailings pond under-drain <br />measured 20 gpm. <br />During January the West Pit water treatment plant operated efficiently discharging a total of 7,437,758 <br />gallons (22.83 acre-feet) of water to Rito Seco Creek and a total of 433,200 gallons (1.33 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