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January 10, 2012 <br />BATTLE MOUNTAIN RESOURCES, INC. <br />I --Wally Erickson <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 />4 _„_December 2011 Monthly Report <br />Dear Mr. Erickson: <br />RECEIVE <br />1 <br />Division of Reclamation <br />7U Mining & Safety <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of December 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 December 30 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 December 29 December tailings impoundment piezometer measurements <br />identified these installations were either dry or contained less than 12 inches of water as illustrated in <br />Table 2. Tables 1 and 2 below identify the depth to water measurements collected for each of the site <br />monitoring wells, piezometers and lysimeters as required by the terms and conditions of the TR -32 <br />QA /QC plan. <br />The leak detection system was measured on December 30 A total of 790 gallons of water was excavated <br />from the leak detection system yielding a monthly average of 25.48 gpad. The tailings pond under -drain <br />measured 27 gpm. <br />During December the West Pit water treatment plant operated efficiently discharging a total of 3,999,668 <br />gallons (12.28 acre -feet) of water to Rito Seco Creek and a total of 3,995,000 gallons (12.26 acre -feet) of <br />water was transferred from the West Pit backfill to the tailings impoundment. Seepage along Rito Seco <br />Creek remained dry during the month. <br />P.O. Box 310 • San Luis, Colorado 81152 -0310 • (719) 379 -0798 • Fax (719) 379 -0713 <br />