Durga set to process Nevada mine tailings

Having already lined up heap leaching facilities Durga expects to produce 1,107 oz gold and 5,000 oz silver from the tailings.

Operations will begin from a mill site previously owned by Silver Hill Mines of Spokane, Wash. Durga recently acquired the remaining 50% interest in the mill site and a number of lode-mining claims close to the Boss mine. They are thought to contain extensions of the granite porphyry which hosts the Boss mine’s precious and base metal mineralization.

The claims are subject to a 7% net profit interest to Silver Hill to a maximum of $2 million(US), at which time the interest reverts to a 3% net smelter return royalty.

Under an agreement, Durga must spend $150,000(US) and issue to Silver Hill 200,000 shares over 18 months if regulatory approval is received. Durga says its Boss mine dumps will also be processed at the mill site. Limited selective sampling has yielded values of 0.18 oz to 0.50 oz gold, according to Durga. A number of additional gold- bearing mine dumps in the area will provide a steady mill feed and source of cash flow, Durga says.

To determine how much high grade material remains at the Boss mine property, the Alberta company is planning an underground sampling program.

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