Battle Mountain poised to produce more gold

Houston-based Battle Mountain Gold (NYSE) is expected to increase its gold production in 1995 and in succeeding years.

A preliminary business plan projects a 17% increase to 565,000 oz. in 1995 from 485,000 oz. in 1994. This is expected to rise to 750,000 oz. by 1997. Most of next year’s additional output will come from two sources, the newly commissioned Reona heap-leach mine in Nevada’s Battle Mountain Trend and the Kori Kollo mine in Bolivia. A secondary source will be higher production from the Red Dome and San Cristobal mines in Australia and Chile, respectively. At Reona, production of the yellow metal will rise to 68,000 oz. in 1995 from 15,000 oz. in 1994. At the company’s 88%-owned Kori Kollo mine, annual production will rise to 290,000 from 265,000 oz.

Both cash production costs and total operating costs are also expected to rise. The former are expected to increase to US$208 from US$195 per oz. while the latter should jump to US$304 from US$284 per oz.

Exploration expenditures, on the other hand, are expected to remain near the US$15-million level. Battle Mountain will explore about 120 projects and prospects, spanning four continents. Among the company’s top priorities is participation in a joint venture that holds four projects in Irian Jaya province on the Indonesian island of New Guinea.

Other countries slated for exploration include Argentina, Bolivia, Chile, Peru, Ecuador, Honduras, Australia and the western U.S.