Situated in southwestern Nevada, the old Yellowpine mine property contains one million tons of stockpiled ore which Durga plans to run through a 250-ton-per-day milling facility, 10 km from the mine site. Durga has agreed to purchase the property from Goodsprings Development of Reno, Nev.
“Historically, the Yellowpine mine was the largest zinc producer in Nevada,” said President Jasi Nikhanj.
The old mine produced 49,777 tons of zinc, 26,251 tons of lead and 1.4 million oz silver grading about 34-45% zinc, 3.5-6.5% lead and 1-6 oz silver per ton.
Grab sample material taken from the stockpiled ore assayed 0.5-49% zinc, according to Nikhanj, who claims that the absence of any mining costs will make the operation profitable.
An agreement with Goodsprings calls for a cash payment of $10,000(US) by Durga and additional payments of $20,000 and $30,000 in the second and third year respectively. The project is also subject to a 5% net smelter royalty.
With an additional 30,000 tons of stockpiled ore material waiting at the mill to be processed, Durga is attempting to arrange a $500,000 project loan before starting production at Yellowpine. Nikhanj says he expects to begin running ore through the mill by year’s end.
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