NEVADA SPECIAL — Battle Mountain complex transformed

In Nevada’s Battle Mountain complex, Battle Mountain Gold (BMG-N) has transformed the Reona mine into a 100% run-of-mine, heap-leach facility.

Battle Mountain expects to achieve lower processing costs — without a reduction in gold recovery — by eliminating crushing.

As a result of severe winter weather, total production from the complex was down to 17,000 oz. gold for the first three months of this year, about 2,000 oz. less than expected. Output for the year, however, is expected to approach 80,000 oz.

In 1995, contained gold reserves at the Battle Mountain complex increased to 60.2 million tons grading 0.036 oz. gold per ton, or about 2.2 million contained ounces, compared with 1.8 million contained ounces in 1994.

The reserve increase is largely due to the Phoenix development project, which has been advanced to the permitting stage.

At last report, reserves at the Phoenix project totalled 46.6 million tons grading 0.04 oz., equivalent to about 1.9 million contained ounces. In addition, about 14.2 million tons grading 0.037 oz. have potential to be brought into the reserve category.

A final environmental impact statement is expected to be completed in early 1997, with construction due to follow shortly thereafter. Production is scheduled for the first half of 1998.

Throughput is targeted at 14,000 tons per day, compared with 10,000 tons under previous design plans. Gold production will also increase, and is expected to average more than 200,000 oz. per year over a 9-year production span. The previous estimate called for production of about 150,000 oz. per year.

In the area of exploration, Battle Mountain intends to use its Nevada experience to look for “Carlin-type” gold deposits elsewhere in the world.

One area of interest is China’s Guizhou province, where the company intends to explore areas of known gold mineralization that bear similarities to the major gold districts of Nevada.

Pending completion of joint-venture documentation and central government approval, work in China will get under way this year.

Battle Mountain has also announced plans to merge with Hemlo Gold Mines (HEM-T), which would lead to the creation of the fifth-largest gold company in North America.

The name of the combined enterprise will remain Battle Mountain Gold, and the company will still operate out of Houston, Tex.