Duran Ventures Inc. Advances on Several Fronts in Peru; Rio Alto Advances Precious Metal Projects and Penoles Accelerates Activities Adjacent Flagship
Duran Ventures Inc. (TSX-V: DRV) (OTC: DUVNF) (Frankfurt: 6D7) (BVL: DRV) is the subject of a Metals and Minerals Digest Review; DRV has a market cap under $22million and is poised for significant upside revaluation with neighbor Penoles expected to produce a first pre-feasibility study of its project in 2013 and gold producer Rio Alto advancing two of Duran's precious metal projects.
The full Metals and Minerals Digest review with chart may be viewed at http://metalsandminerals.net/MetalsMineralsDRVDec2012.pdf online.
Duran's 100% owned flagship Aguila copper-molybdenum project, with nearly 2.5billion lbs of copper and 188million lbs of molybdenum*, is poised to multiply the share price several orders of magnitude from the current as developments approach a climax on the neighbors rapidly developing project. Penoles having had 10 drill rigs active on its Racaycocha ground adjacent to Duran’s Aguila project this summer (up from 4 drill rigs counted in 2011), is approaching the point where it will be officially quantifying the project; on page 10 of Penoles’ quarterly report issued this July 2012 Penoles stated, "The work carried out suggest a copper-gold porphyry with potential for open pit mining type operation. The good results encountered to date have led to acceleration of the project...", Penoles also stated it estimates it “will have the first pre-feasibility study of the project completed by late 2013". Duran Ventures holds key ground that would be required should any efficient mining operation be built, case-in-point being the fact Penoles needed to build its camp on Duran’s property with Duran’s permission (see related image and expanded explanation in the above referenced URL). DRV, trading near ~$0.11. has a current market cap under $22 million and has real potential for significant appreciation based on the discounted in-situ value of Duran's resource at the Aguila project alone; Duran's March 8, 2012 first pass resource calculation on Aguila revealed 25,570,000 tonnes Indicated at 0.61% Copper, 0.036% Molybdenum + 355,530,000 tonnes Inferred at 0.27% Copper, 0.021% Molybdenum. Although the cumulative amount in all categories total nearly 2.5billion lbs of copper and 188million lbs of molybdenum for DRV at Aguila, we (in the process of attempting to put a figure on this) of course will employ a steep in-situ discount in differing categories to establish a conservative estimated fundamental value for the deposit "as is" (certainly more should neighbor Penoles come knocking). Based on comparable project valuations (see the above URL for active link to in situ comparables), certainly attributing an estimated figure nearing USD 100,000,000 for the established resource (84% fundamental value from Cu, 16% from Mo) “as is” to date is not unreasonable. Of course Penoles would need to pay up a premium, and also reflect the large resource growth potential Duran has on its ground, plus the fact Duran holds the key ground essential in the planning of a mine. Next, factor in the involvement of Rio Alto Mining advancing two of Duran's precious metal projects, and this adds additional value not yet reflected in the current share price of DRV.
Rio Alto Mining's decision to JV with Duran is particularly significant since this is Rio Alto's first foray outside its exceptionally successful 200,000+oz gold per annum La Arena project in central Peru. In its early days Rio Alto mainly funded itself using the South American capital markets and created a lot of happy shareholders in its wake, with initial financings between ~36 cents to ~$2 and the stock now sitting above well above $5 -- Duran's aim is to replicate that type of success in shares of DRV and Rio Alto's belief is that Duran's properties offer the ability to deliver. Rio Alto's CEO, Alex Black, is now on the board of directors of DRV offering guidance. The terms of the JV on Duran's Minasnioc high sulphidation gold-silver project are such that the potential outcome from this one project alone to be a 'company-maker' in its own right is phenomenal; the terms essentially state that Rio Alto can earn a 70% interest by completing an initial resource and advancing the project to the point where it has obtained mining permits.
In order to facilitate matters, this Q4 2012 two mining engineers joined Duran's board of directors and DRV also obtained a listing on the Lima Stock Exchange to better access the South American capital markets and better reflect the fact it's properties, people, and focus are 100% in Peru.
The following 4 properties of Duran Ventures are being advanced toward potential meaningful revenue generation, three of the properties are being advanced by well funded proven miners:
1) Minasnioc high sulphidation gold-silver project, central Peru; Rio Alto Mining will earn 70% interest by completing an initial resource and advancing the project to the point where it has obtained mining permits. Recently obtained data reveal the property contains an advanced stage Au-Ag deposit that was previously drilled by Barrick, having received 41 drill holes (over 5863 m of drilling), demonstrating a deposit with potential similar, in part, to what Rio Alto is currently successfully heap leach mining in Peru. Results include 1.2 g/t Au over 17.7 m, 1.6 g/t Au over 18.4 m, 0.55 g/t Au over 55.8 m. The mineralization is classic vuggy silica and alunite alteration with geology similar to Pierina and Alto Chicama Gold-Silver mines in Peru. The high sulphidation target is similar to nearby IRL’s Corihuarmi Gold Mine and Pan American Silver’s Pico Machay Gold Project.
2) Ichuña Cu-Ag-Au project, central Peru; Rio Alto Mining to earn 65% by spending $8million and paying $500,000. A 4000 meter diamond drill program is currently planned. Duran's 1000 hectares Ichuña property is located ~3 km from the Gold Fields-Buenaventura 7.6 M Oz Gold Equivalent Chucapaca Discovery. Duran staked this land years before the big area discovery and geophysics indicate a similar anomaly exists to potentially host a similar find. DRV is permitted and ready to drill. Surface values at Ichuña as high as 10.2% Cu and associated silver up to 1,645 g Ag/T.
3) Don Pancho Silver-Lead-Zinc project - central Peru; A private Peruvian mining company is to earn 70% interest in Duran's 600 hectares Don Pancho's polymetallic project in consideration of a US$2,030,000 payment schedule to DRV, completion of US$3,500,000 in exploration, and undertaking to commence an economic study. The property is proximal to the 2000TPD mill of Trevali Resources' Santander Mine. There is a large breccia body on the Don Pancho property that runs ~400m wide and 800m long that has numerous lead-zinc showings; samples are up to 250 grams of silver (~8-10 ounces) per tonne and 4% - 5% lead-zinc. These are very similar numbers as to the Trevali numbers and it is the same geology.
4) Aquila copper-molybdenum project, central Peru (100% owned flagship); Aguila is now demonstrating world class tonnage potential and is approaching the point to consider commissioning a Preliminary Economic Assessment (PEA). A first resource calculation was issued March 8, 2012 revealing 375 Million lbs Copper & 22 Million lbs Molybdenum Indicated and 2.1 Billion lbs Copper & 166 Million lbs Molybdenum Inferred, this was based on 23,000+ metres of core drilling from 2007 - 2011. DRV has established mineralization over an area ~800m x 400m x 500+m (depth). Aguila has yielded impressive grades in the order of 0.5 - 0.6%+ copper (ie.718m grading 0.555% Cu and 0.041% Mo = 1%+ copper equivalent) in the main intrusive. This expanding deposit is host to a past producing open-pit mine and is part of a major mineralized district actively taking shape with Penoles active on its own porphyry adjacent DRV's claim line. Important to note is that Duran's flagship Aguila copper-molybdenum project is still 100% owned, which is a good thing as what is occurring next door on Peñoles' ground is adding remarkable value; Mining giant Peñoles has been intensively drilling (10 drill rigs were on site in 2012) what is understood to be a separate porphyry body just off Duran's claim line to the south and it also shares a separate porphyry body in the SW section of Duran's claim group. Any mine Peñoles hopes to build would ultimately need to involve Duran as Duran has a sizeable ore body on one side of the gully and all the flat land across the gully and sloping up to where Peñoles is drilling; DRV.V has the only logical place to build plus it would make no sense for two mines to be built. The inherent value of Duran's flagship Aquila property should materialize in share price appreciation for DRV shareholders as this scenario approaches a climax.
Duran’s Aguila project is now demonstrating world class tonnage potential and a resource (~2.5 billion lbs Copper & 188 million lbs Molybdenum*) of this size now commands a market cap for DRV comparable to many of the other copper explorers in Peru that currently in the $100M - $200M+ range (DRV market cap is currently under $22M).