Don Pancho Pb-Zn-Ag Project

The Don Pancho Project covers an area of 800 hectares, located in a prolific polymetallic mineral belt in Central Peru. The World Class Iscaycruz and Yauliyacu Mines operated by GlencoreXstrata plc are located 50 kilometres to the north-northwest of the Project. Production at Iscaycruz Mine during 2013 totalled 1.2 Mt at 7.3% Zn, 0.4%Pb and 0.4%Cu (source: http://www.glencorexstrata.com/assets/Investors/GLEN-2013-Resources-Reserves-Report.pdf).

Buenaventura’s Uchucchacua Mine located 63 kilometres north of the Project produced 10,090,337 ounces of silver in 2011 (source: http://www.buenaventura.com). Furthermore the world class Morococha district is located 70 kilometres to the southeast of the Project. This district hosts the Toromocho Copper Mine owned by Chinalco and the Morococha Mines owned by Pan American Silver Corp. The historic and still operating open pit Cerro de Pasco mine is located 67 kilometres to the northeast.

Locally, the Don Pancho Project is situated nine kilometres west of the Santander silver-lead-zinc mine owned by Trevali Resources Corporation and 10 kilometres south-southeast of the historic Santa Rosa Mine currently being explored by private interests. The Santander Mine achieved commercial production at a rate of 2000 tonnes per day in the first quarter of 2014. Power is supplied to the mine from the Tingo Hydroelectric Plant located 10 kilometres west from the Project. This hydroelectric plant is connected by an established power line to the Santander Mine, which crosses the Project concessions, and in turn, was recently connected by Trevali Resources to the Peruvian National Energy Grid to power the mine and processing plant.

The Santander Miner comprises of three Magistral deposits  (North, Central and South), forming the basis of the current NI-43-101 mineral resource estimates of 6,264,000 indicated tonnes grading 3.62% Zn, 1.30% Pb and 43 g/t Ag (for a contained metal inventory of 500 million lbs. zinc, 180 million lbs. lead and 8.7 million oz. silver) and an additional inferred resource of 13,845,000 tonnes at 4.62% Zn, 0.40% Pb and 21 g/t Ag (for a contained metal inventory of 1.4 billion lbs. zinc, 121 million lbs. lead and 9.3 million oz. silver). (source: http://www.trevali.com/s/Santander.asp)

Furthermore, the project is located 10 kilometres southwest of the 551 hectare historic Santa Rosa Mine where new exploration indicates prospective Carbonate Replacement Body (“CRB”) style mineralization occurs. Focus Ventures Ltd. drilled Santa Rosa in 2011 and highlights of the drilling shows 10.8 metres of 7.8% Zn, 8.3% Pb and 168.6 g/t Ag and 5.0 metres of 9.3% Zn, 1.9% Pb and 69.3 g/t Ag.

(http://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00008433&fileName=/csfsprod/data123/filings/01810955/00000001/x%3A%5CFCV%5CNewsRel%5C2011%5COct12.pdf

(http://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00008433&fileName=/csfsprod/data124/filings/01819610/00000001/x%3A%5CFCV%5CNewsRel%5C2011%5CNov3.pdf)

The Don Pancho project was optioned to a third party in 2012 and recently returned 100% to Duran Ventures after completing six holes in 2021 metres of diamond drilling. Drill results showed several Pb-Zn-Ag mineralized intervals. All six holes were drilled with azimuths between 230° and 240° with various inclinations. Drill holes DP-14-01 thru DP-14-05 were drilled at the southern end of an extensive brecciated zone and drill hole DP-14-05 was drilled approximately 600 meters north of the southern drill holes. The following summarizes the drill results.

DP-14-06, the most northern hole was drilled underneath an extensive brecciated area with numerous samples returning greater than 3% Zn. The mineralization starts approximately at the overburden and rock contact at 55.10 metres and ends at 99.60 metres. The hole intersected approximately 40 meters of 0.88% Zn, 0.40% Pb and 7.7 grams Ag/tonne. No samples were taken from 84.30 to 88.80 metres and drill logs show no geological information. DP-14-06 was drilled to a depth of 350.6 metres and only 14 samples were taken, totalling 19.95 metres of core length over the final 156 metres.

The mineralization on the surface occurs between 300 to 350 metres above the drill trace in DP-14-06. This shows that this zone was not properly tested and still exists as a viable exploration target. Furthermore, field review of the exploration results by Duran shows that the direction of the drilling was perpendicular to the fold axis of the local and regional stratigraphy. The Company believes this was not the most optimal direction for drilling. The stratigraphy is tightly folded in the project area and regional NNE-SSW compression will result in en-echelon openings, cross cutting stratigraphy which will allow mineralizing fluids to circulate. Structural analysis on the geology coupled with previous experience in this area suggests that the drilling may have been drilled sub-parallel to any potential mineralized zones. The Company intends to re-interpret the structural controls on the mineralization to further understand the geological model, which will aid in defining new drill targets. The Company is excited by the first phase drill results which demonstrate the potential for significant Pb-Zn-Ag mineralization at the property.

 

To review the complete 43-101 technical report please click below.