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RECEIVED <br />JAN 1 2 2006 <br />BATTLE MOUNTAIN RESOURCES INC. p;visiunuttdineralsand <br />January 10, 2006 <br />Mr. Allen Sorensen <br />State of Colorado <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 2 ] 5 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. M-88-112 <br />December 2005 Monthly Report <br />Dear Mr. Sorensen: <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. <br />(BMRI), San Luis Project for the month of December 2005. <br />Surface and ground water monitoring and analysis were completed for all required sites during <br />the month per the terms and conditions of the TR-32 Quality Assurance and Quality Control <br />(QA/QC) plan. <br />Vacuum on the tailing lysimeters was verified on December 31~', no water was present for <br />sampling and subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and <br />the Wesi Pit and tailings embankment monitoring wells were collected on Decemebr 31s` <br />December tailing impoundment piezometer measurements identified these installations were <br />either dry or contained less than 12 inches of water as illustrated in Table 2. Tables 1 and 2 <br />below identify the depth to water measurements collected for each of the site monitoring wells, <br />piezometers and lysimeters as required by the terms and conditions of the TR-32 QA/QC plan. <br />The tailing impoundment collection pond underdrain flow was pumped intermittently during the <br />month to minimize the collection pond level. The leak detection system was measured on <br />December 30`". The December tailings pond underdrain flow average was 30.31 gpm and a total <br />of 780 gallons of water was excavated from the leak detection system yielding a monthly average <br />of 26 gpad. <br />During December, the West Pit water treatment plant operated efficiently discharging a total of <br />7,998,200 gallons (24.55 acre-feet) of water to Rito Seco Creek and a total of 327,900 gallons <br />(1.01 acre-feet) of water was transferred from the water treatment plant to the tailings <br />impoundment. Seepage along Rito Seco Creek remained dry during the month. The monthly <br />precipitation accumulation for December was .03" inches, with the largest accumulation <br />occurring on December, 13'" (0.03 "). <br />P.O. Box 310 • San Lois, Colorado 81152-0310 (719) 379-0798 Fax (719) 379-0713 <br />