RENO, Nev., Oct. 23, 2006 (PRIMEZONE) -- Battle Mountain Gold Exploration Corp. (OTCBB:BMGX) ("Battle Mountain") is pleased to report that Orvana Minerals Corp. ("Orvana") announced the results of a preliminary feasibility study for the Don Mario Mine's Upper Mineralized Zone (UMZ) in a press release dated October 20, 2006. Production from the UMZ would be in addition to that from the Lower Mineralized Zone (currently in production); Battle Mountain holds a 3.0% net smelter royalty on all production from the Don Mario Mine.
In their press release, Orvana presented a 43-101 Compliant Proven and Probable Mineral Reserve Estimate for the UMZ.
NI 43-101 Compliant Mineral Reserve Estimates for the UMZ
Source: Orvana's October 20, 2006, News Release
Tonnes Gold (g/t) Silver (g/t) Copper (%)
Proven 1,071,000 1.42 54.5 1.62
Probable 4,377,000 1.42 44.6 1.47
Total 5,448,000 1.42 46.6 1.50
Orvana stated in the press release that they expect that the UMZ mineral reserves would support a seven year mine life and that payable metal production over the life-of-mine for the UMZ deposit would be approximately 236,546 ounces of gold, 7,058,771 ounces of silver, and 72,486 tonnes of copper (annual payable metal production would average 33,800 ounces of gold, 1,000,000 ounces of silver and 10,300 tonnes of copper).
Expected Payable Products by Year for the UMZ Source: Orvana's October 20, 2006, News Release YEAR 1 2 3 4 Gold (ounces) 36,074 36,118 34,525 42,060 Silver (ounces) 1,149,928 1,075,208 1,483,521 894,674 Copper (tonnes) 10,332 11,172 12,329 11,756 YEAR 5 6 7 TOTAL Gold (ounces) 35,170 29,287 23,314 236,546 Silver (ounces) 991,988 925,592 537,862 7,058,771 Copper (tonnes) 9,920 10,025 6,950 72,486
Using $450.00/oz gold, $7.00/oz silver, and $1.20/lb copper, the Gross Metal Value of the expected payable products from the UMZ is approximately $347,600,000. Using October 20th, 2006, London Gold Fix ($596.60/oz), London Silver Fix ($11.98/oz), and LME Copper Price ($7,640.00/tonne), the Gross Metal Value of the expected payable products from the UMZ is approximately $779,500,000. Battle Mountain will participate in this major expansion of the Don Mario Mine through its 3.0% net smelter royalty.
The information presented above was derived entirely from publicly available information provided by Orvana in their October 20, 2006, press release titled "Orvana Announces Completion of Preliminary Feasibility Study for the Upper Mineralized Zone, Don Mario Mine," and Battle Mountain has not undertaken an independent due diligence investigation to confirm the accuracy of this information.
About Battle Mountain
Battle Mountain is a gold royalty company headquartered in Reno, Nevada. Battle Mountain has a diversified portfolio of producing, developing, and exploration gold royalties in seven gold producing countries.
On behalf of the Board of Directors,
Mark Kucher Chairman and CEO
To learn more please visit www.bmegold.com or email info@bmegold.com.
For Investor Information, call 1-800-436-0167 Battle Mountain Gold Exploration Corp. Sixth Floor, Suite 9 One East Liberty Street Reno, Nevada 89504
Safe Harbor for Forward-Looking Statements: This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, the availability of needed personnel and equipment for future exploration and development, fluctuations in the price of minerals, and general economic conditions.