Battle Mountain Gold (BMG) Message Board

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Gold/Mining/Energy : Battle Mountain Gold (BMG)

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To: Roebear who wrote (67)	1/28/1999 7:10:00 PM
From: donald martin	Read Replies (1) of 174

Roebear, The way that I read that press release, the investment in the Kori Kollo mine is $240 million. The anticipated investment to bring the Llallagua on-line is $40 million. Again, that's MY interpretation. It's not REAL clear, is it? Another thing I would add, it said in the press release that the operating costs at Kori Kollo were $180 per tonne. That HAS to be a mistake. It must be $180 per ounce of gold. With an ore grade of 2 g/tonne AU and 10 g/tonne AG, the rock is only worth about $20 or so per tonne. That cut back in production can't be TOO much of a surprise. If the mine was only scheduled to produce through 2003, and obviously the lower grade ore gets done last, there'd have to be a slow down at some point. Maybe this release was enough to shake some nervous Nellie's out, but BMG ain't BGO or ECO. (I know, I've owned both at various times.) Even with gold at current prices, the Llallagua looks like a good thing for BMG. That resource is worth around $18 per tonne and even if they heap leach instead of using the tank leach plant at Kori Kollo it should make money. Maybe cash costs will run low $200s per ounce? Don't hold me to that. I'm almost out of space on the back of my envelope.

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