In acquiring the Three Hills property, Vancouver-listed partners Eastfield Resources and Prism Resources are expanding their holdings in the Tonopah district of Nevada.
The joint venture will pay Coeur Exploration US$320,000 for the property, which contains an epithermal, volcanic-hosted, gold-silver deposit amenable to heap-leaching.
Based on the 142 holes drilled to date, the resource is estimated at 3.2 million tons grading 0.036 oz. gold per ton at a cutoff of 0.02 oz.
Preliminary metallurgical work returned recoveries of more than 80% from a 500-lb. column test using a minus-1.5-inch crush.
The property is adjacent to Eastfield’s Tonopah project, where Prism holds the right to earn a half interest by spending $1.2 million. Seventy holes have been drilled on the nearby Hill of Gold deposit, and the company estimates the potential, leachable resource exceeds 5 million tons at 0.036 oz. gold.
Eastfield will attempt to expand the two deposits in early 1996.