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c~ <br />Battle Mountain Resources, Inc. <br />P.O. Box 310 <br />San Luis, CO 8 1 1 52-03 1 0 <br />(719)379-0798 <br />May 8, 2007 <br />Mc Wally Erickson <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />701 Camino Del Rio, Room 125 <br />Durango, CO 81301 <br />Re: Battle Mountain Resources, Inc. <br />San Luis Mine Project <br />CMLRB Permit Nc. M-88-11~ <br />Monitoring Well ,M- i 4R7Cpn l 2007 Analysis <br />Dear Mr. }iickson: <br />..~~~QI <br />MAy <br />~ °?oo~ <br />~ro(~ <br />t~9i~~rpg ~~ Sa e~ ~ <br />As discussed yesterday, Battle Mountain Resources, Inc. (AMRI) received an analytical result on <br />May 7, 2001 from SVL Analytical Laboratory which the Total Dissolved Solid (f DS) reported <br />concentration of 510 mg/1 exceeded the 500 mg/I TDS Permit Condition Value assigned for the <br />M-14R Point of Compliance. -I'he Technical Revisions (I'R) IS and TR-32 require specific <br />actions to be conducted in the event an analytical sample result exceeds a Pertnit Condition Value <br />as presented in Section 1.2 Reporting of TR-32 and as presented below: <br />"If any measurement for any Permit Condition Value set forth in Table I-2 falls outside the <br />concentration range specified for each Point of Compliance, CDMG u711 be notified within five <br />(5) working days, and the first verification sample in each instance will be taken within 2 weeks. <br />If results of the first verification sample fall outside the specified concentration range, a second <br />verification sample will be taken within 2 weeks after receipt of the first verification sample <br />analysis. CDMG will be notified of the first verification sampling results within five (5) wonting <br />days following receipt of the results. If either verification sample is within the Permit Condition <br />Value(s), CDMG will judge BMRI in compliance and monitorirg at the Point of Compliance will <br />resume the stated sampling frequency. However, if both verification samples fall outside the <br />specified concentration range, CDMG will be notified within five (5) working days following <br />receipt of the results for the second verification sample. <br />Under conditions where both verification samples fall outside the specified concentration range of <br />the Petmit Condition Value(s), BMRI will submit a specific response plan (TR-1i Response <br />Plan), with a schedule for implementatior.•, to the CDMG within 30 days of receipt of the results <br />for the second verification sample. In no cast will the plan be implemented without prior <br />approval of the CDMG. Should BMRI ;ail to fulfill these repotting, verification and response <br />plan obligations, CDMG may issue a Notice of Violation to BMRI for violation of the mine <br />permit." <br />In accordance with TR-15 and TR-32 and the above stated language, BMR[ provided verbal <br />reporting of the M-14R analytical reporting to the Division on May 7, 2007 and this <br />correspondence serves as written notificaron. In accordance with the permit obligations, BMR[ <br />