U.S. REPORT Battle Mountain cuts near-surface zone while pondering

Drilling on the Crown Jewel property in northeastern Washington State has intersected a new, high-grade, near- surface zone. The drilling is part of an option agreement with Battle Mountain Gold (NYSE) which has the right to earn a 51% interest in the project from Crown Resources (VSE). To earn the interest, Battle Mountain must make cash payments totaling US$10 million by Jan. 4, 1991, and fund the property to production. With the deadline for a final cash payment of US$5 million rapidly approaching, Battle Mountain is going all-out, with seven drill rigs operating on the property.

The new zone is about 1,000 ft. southwest of the area where previous drilling indicated a preliminary reserve estimate of about 8.25 million tons grading 0.10 oz. gold per ton. With all seven holes intersecting gold mineralization, the zone remains open in all directions.

Christopher Herald, executive vice-president of Crown, said the company is “very excited” about the recent drilling results. He pointed out that the near-surface, high-grade nature of the discovery could have a significantly positive impact on the economics of the project. And he noted that further drilling will try to connect the new zone with the main deposit.

Crown expects to release drilling results from infill and stepout drilling in the main reserve area shortly. Assay results from the new discovery are as follows: Depth Thickness Gold Hole (ft.) (ft.)

(oz./ton) 319 70-105 35 1.11 320 35-45 10 0.067 341 235-250 15 0.57 359 105-125 20 0.11 360 55-75 20 0.40 371 195-235 40 0.83 378 70-125 55 0.35