Duran Reports Initial Aguila Copper/Molybdenum Resource Estimate of 375 Million lbs Copper & 22 Million lbs Molybdenum Indicated and 2.1 Billion lbs Copper & 166 Million lbs Molybdenum Inferred
TORONTO, ONTARIO -- (Marketwire) -- 03/08/12 -- Duran Ventures Inc. (TSX VENTURE: DRV)(FRANKFURT: 6D7) ('Duran' or the 'Company') is pleased to report an initial resource estimate from its 100% owned porphyry copper/molybdenum Aguila Project, Peru. The Total Resource estimate is presented below:
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Quantity Grade Contained Metal
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000' tonnes Cu Mo CuEq Cu Mo
Category % % % Million lb. Million lb.
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Total Resources
Indicated 27,750 0.61 0.036 0.79 374.5 22.0
Inferred 355,520 0.27 0.021 0.38 2,138.2 166.2
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See Table 1 for the Mineral Resource Statement and Table 2 that shows the Resource Estimate and its Sensitivity to CuEq Cut-Off selection. The Aguila Project is located in Peru's north central Ancash District, 40 kilometres south of the Magistral copper/molybdenum deposit of MILPO and some 120 km north of Peru's largest polymetallic mine, the Antamina Mine of BHP/Xstrata/Teck/Mitsubishi.
Company CEO and President, Jeff Reeder is pleased to present this initial resource estimate for the Aguila Project. Mr. Reeder states 'I have been active in Peru since 1995, and it is exciting to highlight the value that we saw in this area after staking this property many years ago. This initial mineral resource estimate demonstrates the pervasive extent of the Aguila Central Zone copper and molybdenum mineralization at the property.' The 2011 drilling has left the mineralization open to the east, west-northwest and down the plunge of the intrusive to depth. Mr. Reeder states further, 'Duran is excited by the surrounding potential. We have copper mineralized intrusive rocks to the west of the resource, classic high level porphyry style alteration at the historic Pasacancha Ag/Zn/Pb mine 2 km to the east, numerous undrilled IP targets at the property and the recently acquired Mamanina property, that Company geologists have mapped as a copper mineralized intrusive that we believe is a related Cu/Mo/Au skarn/porphyry system. Duran believes that Aguila, along with the Magistral (MILPO), the Raycacocha (Penoles) and the Mamanina properties are all occurring along a district copper porphyry trend. With significant targets available, we will continue our exploration with drilling planned to further expand the resource and to drill several of the other property targets that we have not yet tested.'
Considering the size of the initial mineral resource estimate and the positive preliminary metallurgical results determined by G&T Metallurgical Services Ltd. (See News Release Jan. 12, 2012) confirming that the copper/molybdenum mineralization is amenable to standard flotation processing with good recoveries and no deleterious elements, plans are also being made by the Company to begin engineering studies later in 2012.
Table 1: Mineral Resource Statement(i) for Duran Ventures Inc., Aguila
Project, Peru, SRK Consulting (Canada) Inc., March 8, 2012
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Quantity Grade Contained Metal
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000' tonnes Cu Mo CuEq Cu Mo
Category % % % Million lb. Million lb.
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Open Pit Resources
Indicated 27,750 0.61 0.04 0.79 374.5 22.0
Inferred 299,640 0.26 0.02 0.36 1,743.9 125.5
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Underground
Resources
Inferred 55,880 0.32 0.03 0.48 394.2 40.7
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Total Resources
Indicated 27,750 0.61 0.04 0.79 374.5 22.0
Inferred 355,520 0.27 0.02 0.38 2,138.2 166.2
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(i) Mineral resources are not mineral reserves and do not have demonstrated
economic viability. All figures have been rounded to reflect the
relative accuracy of the estimates. Open pit mineral resources are
reported at a cut-off grade of 0.22 percent copper equivalent and
underground mineral resources are reported at a cut-off grade of 0.26
percent for copper equivalent. Copper equivalent grades are based on
averaged metallurgical recoveries of 87 percent copper and 88 percent
for molybdenum and metal prices assumptions of US$2.85 per pound of
copper and US$13.85 per pound of molybdenum.
Table 2: Inferred and Indicated Model Quantities and Grade Estimates(i),
Aguila Project.
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Inferred Indicated
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Cut-Off
Grade Quantity Quantity
CuEq% 000' tonnes Cu % Mo % CuEq % 000' tonnes Cu % Mo % CuEq %
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0.150 616,110 0.22 0.016 0.30
0.200 445,210 0.25 0.019 0.35
0.220 382,550 0.27 0.021 0.37 27,750 0.61 0.036 0.79
0.240 327,600 0.28 0.022 0.39 27,750 0.61 0.036 0.79
0.260 278,850 0.30 0.024 0.42 27,730 0.61 0.036 0.79
0.280 237,140 0.32 0.025 0.44 27,710 0.61 0.036 0.79
0.295 210,500 0.33 0.026 0.46 27,700 0.61 0.036 0.79
0.300 201,950 0.34 0.027 0.47 27,690 0.61 0.036 0.79
0.325 164,700 0.36 0.029 0.50 27,580 0.62 0.036 0.79
0.340 146,560 0.38 0.030 0.52 27,470 0.62 0.036 0.80
0.360 126,540 0.40 0.031 0.55 27,280 0.62 0.036 0.80
(i) The reader is cautioned that the figures in this table should not be
misconstrued as a Mineral Resource Statement. The figures are only
presented to show the sensitivity of the block model estimates to the
selection of cut-off grade.
The Aguila deposit is a porphyry copper-molybdenum deposit hosted in hydrothermally altered diorite, quartz diorite, and monzonite porphyry rocks that have intruded rocks of the Chicama and Chimu Formations. Copper and molybdenum mineralization consists of disseminated and stockwork style chalcopyrite and molybdenite in sediments and intrusives. Alteration over the deposit consists of potassic alteration with an argillic retrograde overprint. Supergene mineralization is not associated with this deposit because of high relief and fast erosion rates. As drilled to date, the deposit extends for approximately 1,000 metres from east to west, 700 metres north to south and vertically for 1,000 metres. A schematic presentation of the 'In Pit' resource is presented in Figure 1.
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Drilling has established that the mineralization extends continuously through much of the surrounding host sedimentary rocks. See Figures 2 and 3 that show plan and drill sections through the resource block model (UTM Grids and vertical levels are provided for metric scale). Duran will begin its resource expansion drilling at the Aguila East area. Duran has sourced the required drill rigs and has optimized drill setups for the drilling planned through this terrain. Three trenches have been channel sampled along the drill section lines, easterly up the ridge face (and one to the west) and have demonstrated that the ridge hosts significant mineralization. Additional trenching is planned in 2012.
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SRK Resource Estimation Methodology
The Aguila Project initial mineral resource estimate was prepared by SRK Consulting (Canada) Inc. (SRK).
The database used to evaluate mineral resources for the Aguila deposit consists of 46 core boreholes (23,400 metres) and four lines of channel samples (1060 metres). All drilling and sampling programs were undertaken by Duran between 2007 and 2011 with the exception of five boreholes completed by Rio Tinto between 1998 and 1999. All boreholes were completed using HQ and NQ drilling tools. Borehole collars were surveyed by differential GPS. Duran submitted approximately 278 core samples for specific gravity measurements to the ALS Chemex laboratory in Lima, Peru. SRK reviewed the specific gravity and lithologies logged for each interval and found that the differences in specific gravity with respect to lithology are minor. Therefore, an average specific gravity value of 2.78 was used to convert block volumes into tonnage.
The Aguila deposit was subdivided into three major lithological units comprised of two intrusive units and an enveloping sedimentary unit. Lithological boundaries for the main two intrusive units were interpreted and modelled as wireframe solids by Duran that were then reviewed by SRK. All assay intervals within the wireframe solids were composited to 6.0 metres. SRK evaluated the impact of high grade composite outliers in each zone using cumulative probability plots, histograms and examining the spatial distribution of higher grades with respect to other boreholes and adjacent composites. SRK implemented capping to limit the influence of high grade composites.
Variogram models were developed for each metal for the combined intrusive units and sediment units in the Aguila deposit. A sub blocked model was generated for the Aguila deposit using coordinates based on the local UTM grid. The parent block size is 12 by 12 by 12 metres. Sub blocking was carried out to three levels in the X, Y and Z directions. The estimation strategy for the deposit consists of ordinary kriging (OK) estimates for copper and molybdenum using a constrained estimate for the two intrusive units and an unconstrained estimate for the sediment unit. The variogram model for the main intrusive unit was assumed for estimating the secondary intrusive unit.
SRK calculated a copper equivalent grade for all estimated blocks. This calculation was based on metal price assumptions of US$2.85 per pound copper and US$13.85 per pound molybdenum, and averaged recoveries for intrusive and sedimentary units of rocks of 87% for copper and 88% for molybdenum. A copper equivalent ratio of 4.95 was used to determine these values in the block model.
Classification
Mineral resources for the Aguila project have been classified according to CIM's Definition Standards for Mineral Resources and Mineral Reserves (December 2005). The mineral resources were classified into indicated and inferred mineral resource categories based on the borehole spacing and copper estimation variance used to make a first run block estimate. Indicated mineral resource categorization was based on areas where the borehole spacing is at 100 metres or less, and has an estimation variance of less than 0.35. Further, the material classified as indicated mineral resources must form a contiguous minable unit in the deposit. As the parameters are not uniformly distributed in the block model, a wireframe was used to outline blocks in the vicinity of these parameters to form one contiguous unit. Blocks within this wireframe solid were classified as Indicated as they represent block estimates made with a moderate level of confidence. All other blocks represent estimates with a lower level of confidence and are, therefore, classified as Inferred. Additional infill drilling and sampling is required to support a higher classification. It cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.
Mineral Resource Statement
SRK considers that the Aguila deposit is amenable for open pit and underground extraction. To assist with the preparation of the mineral resource estimate, SRK developed a conceptual pit shell. The material outside the resulting conceptual pit shell was considered as available for underground mining. The following assumptions were used to determine potential economic cut-off grades for the deposit:
-- Metal price assumptions of US$2.85 per pound for copper and US$13.85 per
pound for molybdenum;
-- Metallurgical recoveries for molybdenum were accounted for by using a
copper equivalent calculation, 88%;
-- Metallurgical recovery of 87 percent for copper;
-- Metallurgical, general and administration cost of US$4.25 per tonne of
feed;
-- Open pit slope of 50 degrees, mining cost of US$1.25 per tonne mined;
and sub level caving underground mining method with a mining cost of
approximately $US10.00 per tonne mined.
Based on these assumptions, SRK considers that classified resource blocks above grades of 0.22 percent copper equivalent and 0.26 percent copper equivalent show reasonable prospect for economic extraction for open pit and underground mining, respectively. Mineral resources were estimated in conformity with CIM's generally accepted Estimation of Mineral Resource and Mineral Reserve Best Practices Guidelines. The mineral resources may be affected by further infill and exploration drilling that may result in increases or decreases in subsequent resource estimates. While the Company believes that no legal, political, environmental or other risks exist that could materially affect the potential development of the mineral resources of the Aguila Project, the mineral resources may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors in the future. The Mineral Resource Statement presented in Table 1 was prepared by G. David Keller, P.Geo. (APGO#1235), an independent Qualified Person as this term is defined in National Instrument 43-101. The effective date of the mineral resource statement is March 8, 2012.
Quality Assurance / Quality Control Program
Diamond drill core was photographed and cut in half with a diamond saw, with one half of the core delivered directly to the analytical laboratory and the other half stored on site for future reference and assay verification. Channel samples cut from the trenches were collected under the direct supervision of Duran geological staff with samples being geologically logged before being bagged and shipped. Assaying was carried out by ALS Chemex (Lima, Peru) a laboratory whose quality control system complies with International Standards ISO 9001:2000 and ISO 17025:2005. Samples were prepared using a four-acid digestion and atomic absorption method for copper and molybdenum, as well as a multi-element ICP analysis. The Company has a QA/QC protocol in place which includes the use of certified standards, blanks, and duplicate samples, check assays carried out at a second laboratory, as well as secure care and custody of samples.
Statistical analyses were performed on coarse duplicates for diamond drill core and pulp duplicates for chemical laboratory analysis. Additionally, grade QA-QC analyses were performed on standards and on blank samples. The conclusions drawn from the QA-QC analyses are as follows:
-- Analyses of duplicates show good precision, indicating that the
protocols used for sample preparation and assaying were adequate.
-- Analyses of standards used during exploration show good accuracy.
-- Analyses of blanks show no serious contamination problems between
samples.
The overall conclusion is that QA-QC data generated throughout the Aguila drilling and trenching program meets acceptability criteria and the exploration data can be used with confidence for resource modeling and estimation.
SRK Recommendation for Further Exploration Work
-- Exploration drilling over the Aguila and Aguila East Expansion area and
closing off mineralization to the west of the Aguila area (8,000
metres);
-- Exploration drilling on the Pasacancha zone (2 km east) will target for
copper and molybdenum mineralization down dip of the silver-zinc-lead
mineralization and geophysical IP targets (2,500 to 3,000 metres);
-- Exploration drilling targeting geophysical IP targets other than the
above (1,000 metres);
-- Update of mineral resources following drilling program in the Aguila and
Aguila East Expansion areas;
-- Preliminary Economic Assessment engineering study on the Aguila project
following the mineral resource update; and
-- Commissioning an environmental baseline study for the project.
Company Information
Duran Ventures Inc. is a Canadian exploration company focused on the exploration and development of porphyry copper and molybdenum, precious metal, and polymetallic deposits in Peru. The Company's principal project is the Aguila Copper/Molybdenum Project. Jeffrey Reeder, P. Geo., a qualified person as defined in National Policy 43-101, is responsible for all technical information contained in this news release other than the Aguila Project mineral resource estimation as presented by David Keller, P Geo of SRK (Toronto), a qualified person as defined in National Policy 43-101.
Duran Ventures Inc. is a Canadian resource company
Listed on the TSX Venture Exchange: Symbol 'DRV'
Disclosure Regarding Forward-Looking Statements: This press release contains certain 'Forward-Looking Statements' within the meaning of applicable securities legislation. We use words such as 'might', 'will', 'should', 'anticipate', 'plan', 'expect', 'believe', 'estimate', 'forecast' and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in copper and molybdenum and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our Peruvian activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.
Neither the 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.
Contacts:
Duran Ventures Inc.
Jeffrey Reeder
(416) 867-1591
info@duranventuresinc.com
www.duranventuresinc.com