Battle Mountain makes nickel find

Battle Mountain Gold (NYSE) has uncovered lateritic nickel mineralization at its Siduarsi prospect in the Indonesian province of Irian Jaya.

The mineralized area measures 0.5-4 km wide by 9 km long and has been outlined by 110 shallow auger holes, with average grades of 0.92% nickel and 0.08% cobalt. The average thickness is 2.7 metres.

The current program calls for 20-25 shallow core holes to be drilled in an effort to test the depth and grade potential of the deposit. So far, assays for nine holes have been received, returning average grades of 1% nickel and 0.05% cobalt over a thickness of 6.8 metres.

Battle Mountain believes the deposit has the potential to host 65-70 million tonnes of material.

The Siduarsi lies in a 26,000-sq.-km land position in the north-central part of the island, 25 km south of the coast and 145 km west of town of Jayapura.

In Australia, exploration continues to expand a zone of high-grade mineralization at the Vera deposit, which forms part of Battle Mountain’s Pajingo gold mine.

Significant gold values on the Vera have been intersected over a vertical extent of 170 metres and a strike length of 150 metres. Based on 15 drill intercepts, the average true width of the vein is 7 metres, at an average grade of 19.8 grams gold per tonne. Mineralization is still open to the west and at depth.

On strike with the Vera and half a kilometre to the northwest, the company has identified an extension to the structure. Known as the Nancy prospect, it has been subjected to drilling, with four holes indicating potential for mineralization over a strike length of 280 metres.

The company and its 50% partner, PosGold Operations, will continue exploring these two prospects along the 3.5-km shear zone in Queensland. The first priority will be to test the gap between the Vera and the Nancy. Other targets along the structure will be tested this year as well.

Battle Mountain hopes to outline 100,000 oz. in reserves for the Vera deposit and bring it into production before year-end. This will extend the life of the Pajingo mill, which is currently processing ores from the Cindy vein.