Leaching site gives Durga chance to generate cash

Having secured an interest in Silver Hill Mines’ adjacent heap leach mill site, Durga will go ahead with its bid to generate some cash flow before the end of 1989.

Silver Hill Mines of Spokane, Wash., holds a land package in an area dotted with former high grade gold mines.

The mill site claims consist of complete heap leaching facilities including a 10,000-ton leach pad, settling ponds, carbon towers and lab facilities for the recovery of leached gold.

Durga regards the mill site acquisition as important because it is the only operable production facility in the Yellowpine Mining District. It also houses the only commercial water well in the area.

Under an option agreement with Silver Hill, Durga will carry out exploration in 25 mill site and 20 lode mining claims. They are thought to contain extensions of the granite porphyry which hosts the Boss mine’s precious and base metal mineralization.

The agreement requires Durga to spend $150,000(US) on the properties over the next 18 months and carry Silver Hill mines for a 7% gross (3.5% net) carried interest to a maximum of $1 million from production revenues. At that point, Silver Hill reverts to a 3% net smelter return royalty (1.5% net).

Durga can earn a 100% interest in the Boss mine property which produced almost 8,000 oz gold and 569,000 lb copper around the turn of the century. Seventy-year-old geological reports indicate that a ton of selectively mined ore contained values ranging as high as 111 oz gold, 99.08 oz platinum, and 16 oz palladium per ton.

“We will do some underground and surface sampling at the Boss property before drilling in late May,” said President Jasi Nikhanj. He is attempting to raise $500,000 to finance the program.

“We want to see how much high grade material is still on the property,” he said. Durga currently holds about $150,000 in cash.

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