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BATTLE MOUNTAIN RESOURCES, INC. <br />January 07, 2013 <br />Mr. Walty Erickson 1/ <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 -8812 <br />A!5ecember 2012 Monthly Report <br />Dear Mr. Erickson: <br />REcEnM <br />SAN A 9 2013 <br />R6CLAAfAT� <br />i*J OF WANDMFW,-- <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of December 2012. <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 31 ", no water was present for sampling and <br />subsequent analysis. Lysimeter LD -2 was damaged during inspection and is the process of being repaired. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and the West <br />Pit monitoring wells on December 31 ". December tailing 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 31'`. A total of 680 gallons of water was excavated <br />from the leak detection system yielding a monthly average of 21.9 gpad. The tailings pond under -drain <br />measured 34gpm. <br />During the month of December the West Pit water treatment plant operated efficiently discharging a total <br />of 4,954,300 gallons (15.21 acre -feet) of water to Rito Seco Creek and a total of 2,755,400 gallons (8.46 <br />acre -feet) of water was transferred from the West Pit 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 <br />