While Battle Mountain Gold (NYSE) added 735,000 oz. gold to its reserve base in 1995, the amount was not sufficient to prevent a decrease in its overall inventory.
The proven and probable figure stands at 7.7 million oz., down slightly from 8 million oz. in 1994.
Reserves were augmented to the tune of 320,000 oz. (from oxide material at the Llallagua project, near the 88%-owned Kori Kollo gold mine in Bolivia) and 415,000 oz. (from the Phoenix project in Nevada).
Overall reserves were depleted as a result of the fact that Battle Mountain produced 580,000 oz. during the year. Contributing to the depletion was the dilutive impact of the initial public offering of Lihir Gold (NASDAQ), which controls 6% of the Papua New Guinea gold project.
For 1996, the company is increasing its exploration budget to US$19 million in an effort to locate more reserves.
At the Vero project in Queensland, Australia, Battle Mountain is busy exploring for additional mineralization. Five rigs are drilling the gap on the shear structure between the Vera and Nancy prospects.
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