Battle Mountain improves

Showing an improvement over the second quarter, Battle Mountain Gold (BMG-N) nonetheless incurred a net loss of US$14 million (or 6 cents per share) in the 3-month period ended Sept. 30.

By comparison, the company posted a loss of US$9.6 million (4 cents per share) for the third quarter of 1998.

Gold production in the recent quarter totalled 198,000 oz. (6% more than in the second quarter), while cash costs amounted to US$152 per oz. (US$18 less). The company expects to exceed its year-end target of 725,000 oz. produced at a cash cost of less than US$170 per oz.

While production was lower at most of its operations, the Holloway mine, near Matheson, Ont., showed significant gains in throughput and grade. Production increased 40% over the third quarter of 1998, to 28,000 oz., while cash costs fell to US$162 from US$190 per oz.

Farther afield, at the Vera-Nancy mine in Queensland, Australia, production rose 50% to 15,000 oz., while cash costs shrank to US$112 from US$150 per oz.

Meanwhile, Battle Mountain added 1.5 million oz. to reserves at the Phoenix project in Nevada.

Exploration was also carried out near the Holloway mine, at the Blacktop property, where the first of three holes intercepted 87 ft. grading 0.19 oz. gold per ton, plus two other intercepts of 20 ft. grading 0.37 oz. and 29 ft. grading 0.21 oz. The other holes hit 52 ft. of 0.3 oz. and 17 ft. of 0.12 oz. Drill programs are also in progress at the Tres Cruces property in Peru and at the Casposo property in Argentina.

The company’s hedging strategy calls for the delivery of 300,000 oz. over the next four years, or about 19,000 oz. per quarter. The company may also be required to deliver 15,000 oz. in the fourth quarter at US$320 per oz.