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BATTLE MOUNTAIN RESOURCES, INC. <br />August 9, 2002 <br />Mr. Jim Dillie / <br />State of Colorado <br />Division of Minerals and Geology <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 />July 2002 Monthly Report <br />Dear Mr. DiIIie: <br />RECEIVED <br />AUG 15.2002 / <br />Division of Minerals and Geology <br />The following summarizes monitoring and site activities at the Battle Mountain <br />Resources Inc., San Luis Project for the month of July 2002. <br />Surface and ground water monitoring and analysis were completed for all required sites <br />during the month. All surface water stations were inspected and recorded weekly as per <br />the terms and conditions of the permit. These inspections and recordings identified <br />readings at RS-1, RS-2, RS-3 and RS-5 of zero (0) inches and RS-4 and RS-6 were dry. <br />Extremely dry precipitation conditions persisted throughout the month with only one <br />significant precipitation event occurring on July 41h. This event provided 1.39 inches of <br />rainfall. Rito Seco Creek remains well below historic flow conditions for this time of <br />year. <br />Vacuum on the tailing lysimeters was verified during the month, no water was present for <br />sampling and subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment and West <br />Pit piezometers/monitoring wells on July 3151. The July 31s` tailing impoundment <br />piezometer measurements identified these installations were either dry or contained less <br />than 12 inches of water. Table 1 below identifies the depth to water measurements <br />collected for each of the site monitoring wells and piezometers. <br />The tailing impoundment collection pond underdrain flow and leak detection systems <br />were measured on July 31". The collection pond underdrain flow was approximately <br />42.05 gpm and a total of 380 gallons of water were evacuated from the leak detection <br />system yielding a monthly average of 12.26 gpad. <br />P.O. Box 310 • San Luis, Colorado 81162.0310 (719) 379-0798 Fax (719) 379-0713 <br />