NEVADA & THE WESTERN STATES — Battle Mountain forges ahead at Crown Jewel

With the political wrangling over, Battle Mountain Gold (BMC-T) is back on track at the advanced Crown Jewel gold project in northeastern Washington state.

The company is earning a 54% interest in the project from Crown Resources (CRRS-Q) by providing all necessary funding. So far, more than US$80 million has been invested in the project. Also, US$50 million has been posted in security bonds, and 50 state or local permits are now in hand.

Permitting was halted in late March, when the departments of the Interior and Agriculture rejected Battle Mountain’s plan of operation (POO) and voided its record of decision (ROD), stating the project had too many mill site claims relative to lode claims. Their reasoning stemmed from an interpretation of the 1872 Mining Law. The delay was overturned by a joint committee of the U.S. House of Representatives and the Senate (T.N.M., May 31/99).

“We are pleased that Congress addressed the denial of our POO and revocation of the ROD,” states Battle Mountain president Ian Bayer. “We have needlessly lost some time but are glad to have the project back on track in accordance with the long-established law upon which the company relied.”

Final approval for the POO is expected shortly, and construction will begin once all remaining permits and outstanding appeals have been cleared. Despite the delays, startup is anticipated in the latter half of 2001.

The total cost of acquiring and developing the proposed 3,000-ton-per-day operation is estimated at $160 million, excluding capitalized interest. Annual production is anticipated at 185,000 oz. gold, with life-of-mine cash costs projected at US$160 per oz.

At last report, proven and probable reserves stood at 8.6 million tons grading 0.185 oz. per ton. This assumes receipt of all permits and approvals.

Meanwhile, Battle Mountain continues to revise a feasibility study at its namesake project in north-central Nevada, anticipating completion in the fourth quarter. As part of this effort, a revised POO was submitted in January, and a 150,000-ft. drilling campaign is now under way.

Proven and probable resources stand at 81.7 million tons grading 0.043 oz.

Total capital costs are projected at $150-160 million, excluding capitalized interest. Daily production is projected at 20,000 tons, yielding 300,000 oz. annually at cash costs of US$185-190 per oz.

Startup is slated for the second half of 2001, assuming permits and approvals are not delayed.