LATIN AMERICA SPECIAL — Gold properties evaluated — Battle

International miner Battle Mountain Gold (NYSE) continues to expand its international exploration effort beyond Bolivia and into other Latin American countries.

In 1994, the Houston-based company evaluated several properties in gold regions around the world, and this year it intends to spend about US$14 million exploring 90 prospects, comprising some 14,800 sq. miles, at home and abroad. A good portion of this will be spent on early-stage projects in Argentina, Bolivia, Honduras, Chile, Peru and Ecuador.

Battle Mountain’s first and most successful endeavor into Latin America was the Kori Kollo gold and silver mine in southern Bolivia. In 1989, the company purchased a 33.3% interest in Inti Raymi, which owned and operated the Kori Kollo heap-leach operation. Before the year was out, Battle Mountain increased its stake to 51% and it now controls 88%.

The Kori Kollo is described as volcanic plug which contains a shallow oxide gold reserve and deeper sulphide reserves. The 1993 annual report lists proven and probable reserves as being 65.3 million tons averaging 0.066 oz. gold per ton. In 1993, production reached 211,000 oz. at a cash operating cost of US$169 per equivalent ounce.

For 1995, Battle Mountain plans to increase output to 330,000 oz., compared with 265,000 oz. in 1994.

In addition to producing gold at the Kori Kollo, the company has acquired ground and commenced exploration in the surrounding district of La Joya. Realizing the vast potential of Bolivia, the U.S. producer has entered discussions with state-owned mining company COMIBOL concerning possible future acquisitions. Last fall, one of Battle Mountain’s subsidiaries was awarded

a joint venture to explore and develop the Bonete gold property. Meanwhile, the company has ventured into Argentina, where it holds 45 concession applications comprising 1,160 sq. miles, as well as several other properties in San Juan province. The properties cover what the company perceives to be projections of the prospective El Indio and Maricunga gold belts, and they will be evaluated this year.

Having considered about 30 gold prospects in central and western Honduras, Battle Mountain has begun evaluating four key prospects. Perhaps the most promising is the Cacamaya, a joint ven-ture with a subsidiary of Breakwater Resources (TSE). Preliminary results from geochemical and geophysical surveys suggest the project has considerable potential, the company says.