Battle Mountain starts expansion plan

In the first quarter, Battle Mountain Gold (NYSE) had a consolidated net income of US$2.8 million on revenues of US$52.8 million.

This compares with a net loss of US$3.2 million on revenues of US$60 million in the same period in 1993.

At the annual meeting, Chairman Karl Elers said the positive results are due to a higher realized price for gold and lower operating costs. To increase productivity and further reduce costs, Battle Mountain (BMG) is expanding gold production.

Completion of two projects — the Reona heap-leach mine in Nevada and the Red Dome expansion project in Queensland, Australia — and expansion of the Kori Kollo mine in Bolivia are expected to boost total production. Reona is expected to crank out 50,000 oz. gold per year for 6-7 years. In Australia, BMG’s subsidiary is extending the existing pit and pushing back a portion of the pit walls. This will allow production to continue through 1995.

In Bolivia, operations at the Kori Kollo continue to surpass expectations. Expansion of the 88%-owned mine should increase production by 40% to 350,000 oz. per year.