Battle Mountain advances Aussie deposit

Delineation work is progressing at a high-grade, underground target at the Pajingo mine in Queensland, Australia.

Battle Mountain Gold (NYSE) reports that its Vera deposit has the potential to contain more than 100,000 oz. of reserves, and the company plans to bring it to production before the end of 1996.

Among the best intercepts from the deposit are 6.7 metres grading 51.49 grams gold per tonne, 7.7 metres at 13.9 grams, and 13.3 metres at 22.48 grams. To test the Vera’s downdip potential, four rigs are drilling additional holes on 40-metre spacings.

Mining at the wholly owned Pajingo gold-silver mine is focused on the Cindy vein. Battle Mountain holds a half interest in this new deposit, with the remaining half held by PosGold Operations.

Meanwhile, in Bolivia, the company expects to complete pilot plant testing of the Llallagua sulphide gold mineralization, near its 88%-owned Kori Kollo gold mine.

Closer to home, Battle Mountain hopes to complete permitting on the Phoenix project at the Battle Mountain complex, in Nevada, as well as begin construction.

It also hopes to issue the final environmental impact statement for the Crown Jewel project in Washington state.

Total operating expenses for 1996 are expected to be somewhat higher than in the previous year. However, gross revenues will likely be about even with those of 1995. Exploration expenditures for 1996 are projected at US$20 million.

The company expects gold production to increase by some 11% in 1997, to 640,000 attributable ounces; and output for the following year is projected to rise even further, to 770,000 oz.