A Cash and Project Generator FOCUSED ON MINERAL PROCESSING AND EXPLORATION IN PERU

Transcription

1 A Cash and Project Generator FOCUSED ON MINERAL PROCESSING AND EXPLORATION IN PERU July

2 Forward Looking Statements Disclaimer Certain information presented, including discussions of future plans and operations, contains forward-looking statements involving substantial known and unknown risks and uncertainties. These forward-looking statements are subject to risk and uncertainty, many of which are beyond control of company management. These may include, but are not limited to the influence of general economic conditions, industry conditions, fluctuations of commodity prices and foreign exchange rate conditions, prices, rates, environmental risk, industry competition, availability of qualified staff and management, stock market volatility, timely and cost effective access to sufficient working capital or financing from internal and external sources. Actual results, performance, or achievements may differ materially from those expressed or implied by these forward looking statements. TSX.V: DRV 2 2

3 Duran Ventures Well Established Peruvian Corporate Structure Over 20 years operating experience in Peru Extensive business and geological country knowledge Lima Stock Exchange listing in 2012 Cash position as of March 31, C$1.2 million Significant recoverable VAT (IGV) tax credits and losses Cash And Prospect Generation Model A Producer 80% interest in the Aguila Norte mineral processing plant, northern Peru Construction of processing plant commenced in late Nov 2015 and scheduled for Q3/16 startup - Initially 100 tpd gravity/flotation circuit - Expansion capacity to 500 tpd including CIP circuit An Explorer History of opportunistic acquisitions and exploration success Hold numerous properties throughout Peru Optioned Panteria project to First Quantum Minerals in 2016 Exclusivity on Minasnioc with private mid-tier producer signed late TSX.V: DRV 3

4 Corporate Overview Balance Sheet (March 31, 2016) Cash C$1.2 million Working Capital C$1.2 million Debt C$0 Recoverable Tax in Peru (IGV) Exchange/Stock Symbol C$1.3 million TSX-V: DRV BVL: DRV Capital Structure Share Price (July 7, 2016) C$ Week Share Price Range C$0.07-C$0.20 Issued and Outstanding 33,521,410 Fully Diluted 34,349,981 Market Cap (June 1, 2016) $3.3 million TSX.V: DRV Management and directors own more than 10% of the Company. 4

5 Management and Directors Management Jeffrey J. Reeder, P. Geo. Chief Executive Officer and Director Professional geologist with 22 years of experience in Peru. Daniel Hamilton, CPA, CA Chief Financial Officer Over 25 years in accounting and finance roles in the mining industry Oscar Pezo Camacho, MBA VP Corporate Development and Director Former CEO of NCF Bolsa SAB and NCF Inversiones SA, a Peruvian financial group experienced in Peruvian capital markets and holding direct investments in junior mining companies with projects in Peru Board of Directors Joseph Del Campo, CPA, CMA Chairman Interim CEO of Unigold Inc. Steve Brunelle Over 35 years of experience in mineral exploration throughout the Americas Former Director/Officer of Corner Bay Silver and Stingray Copper John P. Thompson, P. Eng. Over 35 years of experience in surface and underground exploration and mine development. CEO of Sona Resources William R Brown, MAusIMM Over 35 years of experience in the resource sector and key player in a number of successful property acquisitions in Peru, Argentina and Brazil for several junior resource companies 5

6 Overview There are several high grade mineral areas both in Precious and Base Metals throughout Peru currently held by artisanal miners and small independent operators Strong push by the government to formalize, regulate and tax the artisanal and informal mining operations The vast majority of the mineral is shipped to southern Peru (Nasca and Chala) incurring very high transport cost and uncompetitive commercial terms Duran s Aguila Norte processing plant will cover a lack of processing capacity in northern Peru for this material and generate cash flow Initial permitting allows 100 tpd processing rate Expansion capability to 500 tpd Developing 100% owned concessions with high grade mineral Partnerships with large companies on 100% owned properties Secured High Grade Polymetallic Ore via Mineral Assignment 6

7 Plant Location Strategic Location of Aguila Norte Plant 11 km from highway and near Trujillo (population 2 million) Nearby water (2 km), grid power (11 km) and port (20 km) Able to access ore from the Piura. Pataz and Ancash mineral districts Surface and construction rights granted Commissioning planned for Q3/16 Large tailings area + 20 years at full capacity of 500 tpd Peruvian partner (20%) with extensive network of mineral suppliers 7

8 Panoramic View - Aguila Norte Mineral Processing Facility Tailing Area Flotation and Milling Circuit Crushing Circuit Large Area Covering 33 hectares Nearby Water Supply Sufficient Space for Expansion to 500 tpd No communities present within processing facility area Surface rights acquired 8

9 Primary Crushing Circuit 9

10 Milling Circuit 10

11 Tailings Area Final Tailings Height Initial Tailing Height 11

12 Short Term Goals 2016 Expect to start commissioning phase in July 2016 Continue to upgrade the plant by establishing a full onsite Laboratory, scales and increase security Design and construct a 50 tpd Carbon in Pulp circuit to treat Oxide Gold material Commissioning period 3 rd qtr 2016 Process purchased Zn-Pb-Ag mineral Process third party ore and charge processing fee Process low grade Chucara Au-Ag-Pb-Zn mineral Achieve Commercial production late 3 rd qtr by treating high grade Chucara ore targeting + $1000US Gross Metal Value Mineral 12

13 Chucara Au-Ag-Zn-Pb Polymetallic Project TSX.V: DRV 13 13

14 CHUCARA Au-Ag-Pb-Zn Recently acquired by mineral assignment 675 hectare concession Several informal miners onsite shipping high grade ore to ore purchasers in Trujillo 40 km north of the Aguila Norte Plant $100,000 US investment to establish infrastructure at site $40 US per ton transportation to Aguila Norte Processing Plant Profits equally shared (50/50) with the project title holder after transport, processing (Aguila Norte) and mining costs Targeting + $1000 Gross Metal Value ( GMV ) Duran s projected profit per 1500 tons = $270,000 US 14

15 Chucara Property Veca 1 Concession TSX.V: DRV 15

16 Chucara Property Informal Mine Workings 16

17 Informal Miners Preparing Mineral for Shipment 0.51 oz/t Au, oz/t Ag 12.24% Pb, 10.66% Zn 17

18 Chucara Au-Ag-Pb-Zn Mineralized Material 23 samples taken from mineral ready to be shipped Gold: Average grams per ton (0.48 oz/t) (ranging from 5.15 to 29.1 grams per tonne) Silver: Average 396 grams per ton (12.73 oz/t) (ranging from 136 to 1002 grams per ton) Zinc: Average 5.98% (ranging from 1.52% to 10.66%) Lead: Average 5.79% (ranging from 1.32% to 18.61%) Gross Metal Value: US$1120 per ton (*) (*) At $1350 Oz Au, $19.5 Oz Ag, $0.82 lead per pound, and $0.95 zinc per pound, assuming 100% metal recoveries 18

19 Aguila Norte Gold Showings and Workings Plant located on 80% owned mineral concessions Expand the plant with a Carbon in Pulp/in Leach Circuit ( CIP/CIL ) 1500 tons per month Numerous Oxide Gold showings on concessions located less than 1/2 km from the plant Purchase of high grade gold oxide (+2 ounces) from the Pataz and Piura regions to blend with 3 to 5 grams Au/ ton mineral from gold workings located on the plant site target 10,000 ounces of

20 Aguila Norte Gold Workings 20

21 Aguila Norte Development and Expansion Plans Aguila Norte Plant CIP/CIL Circuit Expand the plant with a Carbon in Pulp/in Leach Circuit ( CIP/CIL ) Connect to the main power grid Start underground development on gold showings located on Aguila Norte Plant Site Purchase of high grade gold oxide and sulphide mineral (+2 ounces) shipped from the Pataz and Piura regions to blend with 3 to 4 grams Au/ton mineral from old gold workings located on the Aguila Norte Plant site Secure long term mineral feed by entering registered mineral assignments with concession owners Target to produce 1000 ounces of gold per month in 2017 by processing 1500 ton per month of oxide material Cash cost of $950 US per ounce of gold 21

22 Expansion & Growth Timelines Aguila Norte Plant Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/ Commissioning Phase Produc1on and Sale of Concentrates Purchasing and Processing 3 rd Party Ore Processing High Grade Chucara Ore Construc1on of CIP Circuit Commissioning of CIP Circuit Produc1on and Gold Sales Increase to 150 tpd Flota1on/CIP Increase to 200 tpd Flota1on/CIP Huachocolpa Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/ Vein Selec1on and PermiEng Mine Development and Mining Processing and Sales of Concentrates 22

23 EsPmated Cash Flow 100 tpd or 3000 tons per month $5,500 Estimated Cash Flow (US$ 000) $4,500 $3,500 $2,500 $1,500 $500 -$500 Q3/16 Q4/16 Q1/17 Q2/17 CAPEX Ingresos REVENUES Totales EBITDA 23

24 Huachocolpa Au-Ag-Zn-Pb-Cu Polymetallic Project TSX.V: DRV 24 24

25 Long Term Growth Huachocolpa Mining District Important polymetallic district with established mineral producers Duran owns 100% with no royalties Project contains a multitude of historically significant concessions hosting vein style, high grade polymetallic mineral 2900 hectares located in 4 areas hosting both high grade precious and base metal mineralization 25

26 Huachocolpa Ag-Zn-Pb-Cu-Au 2016 and 2017 Objectives Further define by sampling and mapping vein sets Permit for small scale mineral scale mineral extraction from the 4 areas for 100 tpd Process locally or transport to Aguila Norte for $80 per ton High Grade Ag-Pb, initial metallurgical work shows very profitable concentrates with Au credits Port in Pisco Locate ideal site for construction of a mineral processing plant 26

27 Huachocolpa Ag-Zn-Pb-Cu-Au Project Concessions Pamela 2 vein 27

28 Huachocolpa Project Pamela Vein Vein ranges from 1 to 4 meters 28

29 Informal Mine Workings Chucara 29

30 Huachocolpa Project Castorindo Zone, Pamela, Castor Veins 30

31 Huachocolpa Project Tangana West Zone, Marilu Vein Marilu Vein Sample Width Au (g/ Ag (g/ Zn Pb Cu (m) t) t) (%) (%) (%)

32 Huachocolpa Project Tangana West Zone, Alexandria Vein 32

33 Exploration Portfolio PANTERIA Cu-Au-Mo Porphyry Cu-Au optioned to First Quantum Minerals (March 2016): Prospect generated by Duran s exploration team MAMANIÑA Cu-Mo-Au Outcropping mineralized (Cu-Au) skarn Alteration mapping indicates porphyry centre Currently showing to potential farminees MINASNIOC Au-Ag Epithermal gold target: Mid-tier (private) Peruvian Company has the option to purchase 100% for $750,000US. Duran retains a 1% NSR. Surface exposure - potential low CAPEX heap leach Previously drilled by Barrick/Buenaventura ICHUÑA Cu-Au-Ag Brownfields target 3 km north of Buenaventura s San Gabriel deposit Similar parallel structuring to San Gabriel - IP anomaly never drilled Road access to San Gabriel (2.5m oz Au) passes through the property 33

34 TSX.V: DRV 34 34