Fine heap leach gold deposit shaping for Allota in Idaho

Alotta Resources has pulled what it describes as “the best hole yet” on its Mineral zone project in Idaho, adding to management’s conviction that it has its teeth into a sizeable and good grade open pitable heap leach gold deposit.

Hole No 25, a reverse circulation boring, returned a 100-ft section from 40-140 ft with an uncut weighted average grade of 0.30 oz gold per ton, including a 30-ft section from 80-110 ft that ran 0.81 oz. Drilled at 45 degrees, this would represent a true width of about 70 ft.

And 250 ft to the east another hole, just reported, contains a 45-ft section from 55-100 ft assaying 0.11 oz.

These latest holes, which The Northern Miner gathers have management rather excited, are some 600 ft west of last year’s drilling which indicated reserves of 758,000 tons grading 0.08 oz in an area 350 ft by 150 ft and to a vertical depth of 500 ft.

This is an oxide material that should prove readily leachable eight to nine months of the year.

Covered by only 5-10 ft of overburden, mining costs should be quite low. In fact a backhoe is being moved in immediately to start stripping and trenching in the area of this current drilling.

Two drill rigs are now on the job, with the most westerly hole 2,400 ft. west of hole No 1.

As reported in last week’s issue, this company is now drilling on two gold properties in Quebec’s Val d’Or area and on its optioned New Senator property in the Rouyn area.

The company is well financed for the work in hand, with some $1 million cash in the treasury and outstanding A and B warrants which, if excercised, will provide an additional $2 million. This funding has been raised through four Vancouver-based brokerage houses. In addition, 1,000,000 flow-through shares have been placed at $2.25 per share to finance its Quebec programs.

There are 5,111,502 Alotta shares now issued and listed on the Vancouver Stock Exchange, of which 1,050,000 shares are held by Tundra Gold Mines. Both of these companies are headed by A. W. Applegath.