Moderate gold/arsenic values found at Durga Res. property

Calgary-based Durga Resources (ASE) has encountered anomalous gold and arsenic values over a large area at its Ban claims in the Northwest Territories.

The Ban claims are adjacent to Echo Bay Mines’ (TSE) Kim Claims where three million tons of 0.24 oz gold per ton have so far been outlined. Back in 1985, Echo Bay examined the Ban claims for a possible northern extension of the Kim zone.

But Durga acquired to claims after Echo Bay opted to reduce its presence in the area. According to Durga, soil sampling on the Ban claims indicates values of up to 0.014 oz gold per ton over a rusty altered volcanic zone 600 m long by 400 m wide with corresponding arsenic values of 50 to 1,000 parts per million.

Structurally, the anomalous zone overlaps the intersection of an apparent north-south thrust-fault projection from the Kim deposit at its intersection with the nose of a folded volcanic metasediment contact, Durga says. Structural and geochemical signature is strikingly similar to the Kim deposit, said Durga President Jasi Nikhanj.

Newmont Exploration of Canada has already encountered values as high as 0.16 oz gold per ton in rock samples and 0.13 oz in soil samples in an area west of the anomalous zone. A joint venture involving Newmont and Durga at the Indin Lake claims is under way. “They would like to option the property from us,” said Nikhanj.

Meanwhile the company is planning to drill its Lexindin gold deposit which is located three miles to the southeast of the Ban claims. Drill indicated reserves at Lexindin now stand at 29,000 tons of 0.30 oz gold per ton.