The Calgary company beat out two rival bidders before signing a deal to earn a 100% undivided interest in a former precious/base metal producer called the Boss mine. The property produced almost 8,000 oz gold and 569,000 lb copper around the turn of the century and it is thought to contain several hundred tons of high grade ore.
Durga can earn its interest by making a series of payments to Nevada-based Goodsprings Development Corp. and spending $300,000(US) on exploration.
Under an agreement with Goodsprings, Durga is scheduled to make option payments of $25,000 and provide warrants to purchase 85,000 Durga shares at prices ranging from $1 to $1.75 over three years.
Goodsprings will retain a 25% net carried interest to production and a 3% net smelter return on 50% of the property payable as advance royalty payments of $500 per month until production.
Situated 30 miles southwest of Las Vegas, the Boss mine is predicated on a structurally hosted epithermal deposit within the thrust faulted carboniferous Devonian limestones.
Geological reports compiled in 1915 indicate that a one ton shipment containing values as high as 111 oz gold per ton, 99.08 oz platinum, and 16 oz palladium was moved from the mine.
A highly altered granite porphyry with anomalous gold values is thought to be located within 600 ft of the property.
President Jasi Nikhanj said his immediate priority is to have the property assessed through surface mapping and drilling.
“We want to find out how much high grade material remains on the property,” said Nikhanj who hopes to extend the Boss deposit along strike and at depth.
According to the president, immediate production potential lies in about 10,000 tons of tailings material which could be processed in a nearby mill. Having gained a foothold in the Nevada gold belt, Durga is planning to look for acquisition targets in the region.
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