Property Description and Objective:
The Huachocolpa polymetallic and precious metal (Ag-Zn-Pb-Cu-Au) properties consist of 82 contiguous and non-contiguous mining concessions totaling 2,980 hectares located within the historic Huachocolpa Mining District in the Department of Huancavellica, Peru, some 260 kilometres southeast of Lima. There is paved road access from Lima to the project via the coastal town of Pisco, totaling 445 kilometres up to the Chonta Pass. From the Chonta Pass to the centre of the property is 25 kilometres on maintained gravel roads. From there, a number of other gravel roads service the Properties.
The Properties were acquired in January 2015 and are 100% owned with no underlying royalties.
Duran’s current objective at Huachocolpa is to advance its technical knowledge and with this in mind the Company will evaluate and consider the following options:
- Contract Mining and toll treating its high grade material at one of the operating process plants in the vicinity of the Properties.
- Commence permitting for installation of a process plant to treat high grade material from Duran’s properties plus several of the nearby artisanal mine workings in the district.
- Associate with one of the existing small-scale producers in the district to build a joint district-wide toll milling facility.
- Seek a Joint Venture Partner who would fund exploration and development on the Properties with Duran receiving cash payments and royalty on production.
- Associate with a 3rd party investment syndicate or Equity Fund to make a strategic investment in the district combining a number of small mining operations
Duran is committed to establishing a sustainable business model whereby its Aguila Norte Process Plant will complement its exploration expertise and portfolio of mineral assets, such as Huachocolpa.
The Properties are at a grassroots stage of development. Mapping and sampling in 2015 by Duran had identified numerous mineralized veins and breccias along with historic workings on the Company’s concessions. The concessions have been divided into 8 distinct concession packages or zones.
Huachocolpa Mining District History:
Veins have been mined in the Huachocolpa District since Spanish colonial times (16th century) and the district is host to several producing and past-producing vein hosted polymetallic, base metal mines (Ag-Zn-Pb-Cu+/-Au). Polymetallic mining and milling continues to be the dominant economic activity in the district with Compania Minera Caudalosa’s Caudalosa Chica mine and Buenaventura’s Recuperada mine being the larger operations currently in production. The Caudalosa Chica and Recuperada mineral processing plants, located 3.0 and 7.5 km respectively from the centre of the properties, produced a combined 41,012(a)(b) tonnes of concentrate during 2014. Compania Minera Caudalosa S.A. is in the process of upgrading its current 800 tonne per day (“tpd”) polymetallic flotation plant to 2,000 tpd. Smaller scale mining operations also operate in the district.
(a) sourced from Grupo Raffo GR Holding SA 2014 Annual Report
(b) sourced from Compania de Minas Buenaventura SAA 2014 Annual Report in the Bolsa de Valores de Lima http://www.bvl.com.pe/eeff/B20003/20150327203602/MEB200032014AIA01.PDF
Huachocolpa District Geology:
The vein systems in the Huachocolpa District generally strike easterly, crosscut folded Mesozoic sediments and overlying Cenozoic volcanics, and are related to late Cenozoic faulting. Polymetallic base metal mineralization in the veins is dominated by sphalerite, silver bearing galena, and chalcopyrite. Within the district, there is zoning towards epithermal mineralization resulting in higher precious metals contents.
Exploration and Sampling:
On Duran’s Properties, numerous veins of variable widths and strike potential have been observed during the 2015 first pass exploration. The veins are continuous to rosary/lenticular, commonly branching, and mineralization is hosted in these veins and related vein breccias.
The Properties have been divided into eight distinct concession packages or zones. Duran mapped and sampled four of these zones, for a total of 196 samples. The majority of the work concentrated on three zones that have assayed high-grade base and precious metal numbers during the reconnaissance sampling programs undertaken by the Company’s geologists. The 2015 sampling also confirmed mineralization in 81 samples collected by the previous owner of the Properties.
Highlights of the 2015 sampling included defining several gold bearing polymetallic veins at the Castorindo Zone, identifying a 1,400 metre long mineral bearing structure at the Alta Tunes Zone, accessing and mapping two levels of an abandoned mine working at the Tangana West Zone, and confirming the potential to expand the strike length on these structures and numerous other structures within the Properties. The surface sampling was successful in defining numerous follow up targets. A description of each zone can be viewed below. Samples used in the zone descriptions are dominantly in the form of chips with lesser grab and mine dump samples, including those confirmed from the previous owner.
Castorindo, Alta Tunes, Tangana West, and Chuqutum Zone Sampling
At the Castorindo Zone, 5 gold bearing polymetallic structures were mapped that remain open along strike. The lengths of the structures as currently mapped are 40 to 400 metres with variable widths from 0.15 to 4 metres and occur in a vein corridor nearly 600 metres wide. Veins bend and occasionally branch and it is anticipated that favourable extensional sites for mineralization will be found during future work programs.
The Castor structure has provided the highest grade gold values on the Properties thus far with four samples ranging in width from 0.18 to 0.42 metres and assaying 13.5 to 25.4 g/t gold with 162.9 to 1128 g/t Ag. High grade silver (1848 g/t Ag) was also encountered at the Jess structure on a sample of 0.2 metres. Other veins requiring follow up have widths ranging from 0.2 to 0.7 metres with gold values ranging from 0.89 to 1.55 g/t, silver ranging from 82.8 to 682 g/t, and up to 4.3% zinc and 9.7% lead.
Tangana West Zone:
The Doris vein in the Tangana West Zone was mapped and sampled on two mined levels. The vein has a strike length of 120 metres with vein widths ranging from 0.5 to 1.5 metres and average grades of 1.69 g/t gold, 66.1 g/t silver, 0.34% zinc, and 0.18% lead.
Of the remaining 75 samples collected from elsewhere in Tangana West, 8 samples returned between 1.43 to 3.38 g/t gold on sample widths of 0.25 to 1.25 metres averaging 0.79 metres, 12 samples returned 100 to 547 g/t silver on samples widths of 0.3 to 1.5 metres averaging 0.57 metres, 3 samples returned 1000 to 4180 g/t silver on samples widths of 0.4 to 0.5 metres averaging 0.45 metres, 4 samples returned between 2.2% to 8.6% zinc on sample widths of 0.3 to 1.0 metres averaging 0.49 metres, 8 samples returned between 2.0% to 14.4% lead on sample widths between 0.25 to 1.5 metres averaging 0.6 meters, and 3 samples returned 1.4% to 2.4% copper averaging 0.55 metres. These and other mineralized samples require follow up mapping and sampling.
Alta Tunes Zone:
The Alta Tunes Zone has been shown to host a significant structure, the Alessandra structure that bears silver-zinc-lead-gold mineralization, is visible as a lineament on satellite imagery, and has a potential strike of 1,400 metres. Mineralized structures along the Alessandra main structure range in width from 0.15 to 5 metres and are dominated by breccia, veins, and veinlet textures. Sampling has concentrated on the northwest and southeast parts of the Alessandra structure and 31 of the better samples collected, including samples from veins in the vicinity of the structure, have provided grades averaging 59 g/t silver, 3.99% zinc, 2.74% lead, and 0.19g/t gold. Included along the northwestern portion of the structure is the Alexandria vein that has been worked for 50 metres underground and that has provided assay results in 10 samples out of the 31 that average 32.43 g/t silver, 6.5% zinc, 2.48% Pb, and 0.32 g/t gold on an averaged width of 0.79 metres. Additional veins have been identified along the Alta Tunes Zone and will require follow up.
Chuqutum and Sarinha Zones:
Limited sampling at the Chuqutum and Sarinha Zones has identified significant gold, silver, zinc, or lead values in rock samples from these zones. The Company looks forward to further developing these zones, as well as, the Manzalones Zone that is located in close proximity to the Caudalosa Chica mine and other small producers, as well as, the Miguu and San Frango Zones.