Alta buys Olinghouse gold properties

Junior producer Alta Gold (NASDAQ) has made the final payment of US$2.25 million for the Olinghouse gold property near Reno, Nev.

The company paid a total of US$6.9 million to Phelps Dodge (NYSE) for the project, where reserves are estimated at 6.6 million tons grading 0.061 oz. gold per ton.

Initial production is planned for the fourth quarter of 1996.

Current exploration is aimed at expanding reserves. The company plans to drill on a strong soil geochemical anomaly at the Green Hill anomaly, which occupies an area measuring 1,100 by 800 ft. northeast of current reserves. Sample analyses average 0.041 oz. per ton.

Mineralization occurs as a series of closely spaced, quartz-adularia veins hosted in andesitic volcanic rocks.

Meanwhile, exploration continues on Alta’s Griffon gold deposit in White Pine Cty., Nev. Fifteen drill holes are planned, the objective being to constrain the limits of the open pit and search for new reserves northwest and southeast of the Discovery Ridge and Hammer Ridge deposits.