Durango Signs Non Binding LOI For Diamonds In James Bay
Vancouver, BC / TheNewswire / March 24, 2015 - Durango Resources Inc. (the "Company" or "Durango") reports that the Company has entered into a non binding letter of intent ("LOI") with an arm's length group of vendors for the strategically positioned Lucky 7 diamond property located in James Bay, Quebec.
The LOI provides that Durango can acquire 45 claims totaling 2,430 hectares in seven separate claim blocks in the Otish Mountains of north-central Quebec. The seven claim blocks were staked based on prospective kimberlitic targets which were identified through a regional airborne magnetic survey which allows prospectors to infer geological structures and formations hidden from plain sight.
Marcy Kiesman, CEO, states, "This is a positive step forward which will advance Durango and align with the corporate milestones which our board has set out for 2015. Durango has been focused on primarily on gold exploration and will continue to do so while diversifying into the diamond space which had a growing demand of 3% in 2014 according to a recently published report from DeBeers Group. The Lucky 7 Properties are located in a proven area of rich producing diamonds, the Otish Corridor, which is where Stornoway Diamonds (TSX.V-SWY) flagship Renard Property resides (Quebec's first diamond mine scheduled to go into commercial production in 2017)."
Under the terms of the LOI, Durango has agreed to issue seven million common shares to a group of third party vendors subject both to a definitive agreement and to TSX Venture Exchange approval. In connection with the acquisition of the property, a finder's fees may be payable in accordance with TSX Venture Policy.
Stornoway Renard Overview
The 100% owned Renard Diamond Project, Stornoway's flagship asset, is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Quebec. Construction began on July 10, 2014, following the completion of a C$946 million project financing transaction, the largest ever for a publicly listed diamond company. Once complete, the project will be the first diamond mine in Quebec, and one of only six in Canada, and will employ approximately 500 people. The project benefits from a large and growing resource, good mining conditions, strong social acceptance, a modest environmental footprint, and the development of direct-to-mine road infrastructure. Once in full production, the project is expected to produce an average of 1.6 million carats per year over an initial 11-year mine life, representing approximately 2% of global supply. First ore is scheduled to be delivered to the plant in the second half of 2016, with commercial production scheduled for the second quarter of 2017.
(http://www.stornowaydiamonds.com/English/our-business/renard-project/default.aspx)
About Durango
Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company has a 100% interest in the Decouverte and Trove gold properties in the Abitibi Region of Quebec, the Albany Spurs graphite property in northeastern Ontario and the Buckshot graphite property near the Miller Graphite mine in Quebec.
For further information on Durango, please refer to its SEDAR profile at www.sedar.com.
Marcy Kiesman, Chief Executive Officer
Telephone: 604.428.2900
Facsimile: 888.266.3983
Email: durangoresourcesinc@gmail.com
Website: www.durangoresourcesinc.com
Forward-Looking Statements
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to Durango, please refer to the Company's Prospectus filed on its SEDAR profile at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2015 TheNewswire - All rights reserved.