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~ III IIIIIIIIIIIII III ~ BATTLE MOUNTAIN RESOURCES, INC. ~ F~ ' ' I ' tai1G g 1993 August 2, 1993 Dr. Harry Posey ~ ~ ~ ~~~ Division of Minerals and Geology ~ 1313 Sherman Street, Room 215 ne^~ouNrAx~ Denver, Colorado 80203 DCOMPANV Re: Battle Mountain Resources, Inc. (BMRI) - San Luis DMG Permit No. M-88-112 Third Party Sampling Dear Dr. Posey: Enclosed is a copy of invoice 11572 to Battle Mountai Resources, Inc. from RCG/Hagler, Bailly, Inc. (RCG) f r the billing period ending June 30, 1993 for your review. .BMRI requests a copy of the invoice detail. Once again the contract clearly appears to be headed (towards an overrun situation. This issue was first brought t your attention in a February 23, 1993 letter and outlined gain in an April 21, 1993 letter (both letters were from K n Kluksdahl-BMRI to Harry Posey-DMG). Through June 30, BMRI has been invoiced for $17,098.47. These costs repres nt 67$ of the total revised contract price of $25,488 yet re lects less than 50$ of the total work to be completed. At he present rate of expenditure, the projected total cost will exceed $35,000 over twice the original contract price. This issue is compounded by the apparent lack of comm tment on the part of RCG to complete the contract in a time~y manner and to follow the revised MOU and the original contract. After the original MOU was violated in Jan ary, special provisions were incorporated into the revised MOU so that the required sampling events during the first an second time periods had been completed; the sampling frequency for the first period was reduced from three visits down to one, and the second sampling period was exten ed. All involved parties agreed to the revised time schedule for the third and fourth time periods. Sampling activiti s once again have not been performed as per the specified si e visit schedule as agreed to in the signed, revised Mo Two site visits were to be completed during the third tim period - May through July; only one visit was made. rior to the end of the third period, no attempts were made on the part of RCG to schedule a second site visit nor was B RI or the Division notified of scheduling difficulties by R G. BMRI contacted the Division prior to the final bi-wee ly sampling event of the third period to express concern about the third party sampling schedule. A.SURSID/ARY OF PATTLE MOUNTAIN GOLD COAIPA.VY P.O. BOX 310 SAN LUIS, COLORADO R I IS?-0110 l71 )167'_-3J6? FAX 1719167'!-3363