Crown Jewel deposit outlined

The recent stepout drilling program on the Crown Jewel property in northeastern Washington state has essentially outlined the limits of the deposit, and a new reserve estimate is currently being calculated.

Battle Mountain Gold (NYSE) can earn a 51% interest in the property from Crown Resources (VSE) by bringing the property into production at a minimum rate of 3,000 tons per day.

Drilling has concentrated on delineating the size of the Southwest extension zone.

Recently released 100-ft. stepout holes returned a number of high-grade intersections, including 15 ft. grading 0.70 oz. gold per ton, 20 ft. grading 1.14 oz. gold and 15 ft. grading 1.21 oz. gold in three holes on the western boundary of the deposit. Stepouts 100 ft. west of these holes failed to intersect any values.

Stepouts to the south intersected gold mineralization grading from 0.18 oz. gold up to 1.39 oz. gold over widths ranging from 10 ft. to 80 ft. The Southwest extension zone now covers an area measuring roughly 1,200 ft. in an east-west direction by 800 ft.

in a north-south direction. Christopher Herald, president of Crown, described the Southwest extension zone mineralization as generally continuous and higher grade than the Main zone. The thickness of the zone ranges from 10 ft. up to 130 ft.

Drilling is continuing with a few infill holes remaining to fill out the 100×100-ft. grid pattern on the Southwest zone. Herald expects the 100-ft. grid on the Southwest zone to be tight enough with only a limited amount of closer-spaced drilling necessary in selected areas.

The Main zone, adjacent and to the northeast, has been drilled off on a 50-ft. grid. The Main zone is irregular but generally measures about 1,500 ft. in the north-south direction and 800 ft. in an east-west direction. Estimated reserves prior to this year’s program were 5.57 million tons of proven and probable mineralization grading an average of 0.13 oz. gold, plus a preliminary estimate of a further 1.71 million tons grading 0.28 oz. gold. Herald said the proven and probable reserves are primarily in the Main zone with the preliminary estimate based on a limited amount of drilling at that time in the Southwest area.