Stepout drilling expands limit to extent of Crown Jewel deposit

Drilling results from a recently started summer program on the Crown Jewel property in northeastern Washington State indicate that the ultimate size of the gold deposit has yet to be determined. Battle Mountain Gold (NYSE) is overseeing the drilling program after recently completing an option deal with owner Crown Resources (VSE). Battle Mountain has the option to earn a 51% interest in the Crown Jewel by paying Crown US$10 million and providing 100% funding to build a minimum 3,000- ton-per-day mine and mill by mid- 1993.

Crown noted that 22 out of 40 recently drilled holes intersected greater than 0.03 oz. gold per ton over intersects of 10 ft. or more. About 25% of the work is infill drilling to bring the spacing down to 50 ft., while the remainder is stepout drilling on 100-ft. centres.

The current drilling program is expected to be in excess of 100,000 ft. Previous drilling outlined a geologic reserve of 8.3 million tons grading 0.10 oz. gold per ton, including a proven and probable reserve of 5.6 million tons grading 0.087 oz.

Results from stepout drilling are: 0306,0400,0400, Intersect Grade Hole (ft.) (oz./ton) 180 20 0.071 80 0.036 185 10 0.086 186 55 0.219 10 0.047 192 10 0.119 20 0.070 15 0.048 15 0.061 196 10 0.198 197 15 0.126 15 0.141 25 0.105 198 10 0.129 30 0.052 200 10 0.293 201 10 0.055 20 0.302 207 25 0.126 213 10 0.685

In-fill drilling: Interval Grade Hole (ft.) (oz./ton) 175 35 0.137 10 0.063 176 10 0.067 177 55 0.297 30 0.040 178 10 0.045 20 0.045 179 35 0.057 189 10 0.053 40 0.156 190 25 0.034 20 0.959 60 0.460 191 50 0.130 10 0.210 199 15 0.054 15 0.042 10 0.036 209 10 0.053