With the price gold hovering around the USD$2000 mark for the past few months, gold exploration companies are starting to amp up operations…globally. But not every company has historically-producing properties in mining-friendly jurisdictions, an experienced management team, and the technological expertise to get results. But one Vancouver, BC-based junior explorer might just boast all three.
Durango Resources Inc. (
TSX-V:DGO,
OTC: ATOXF,
Forum) is a natural resources company engaged in the acquisition and exploration of mineral properties. Durango is positioned for discovery holding a 100% interest in the Trove and East Barry claim blocks which are in the most active gold exploration camp in Quebec, Canada. The Windfall Lake Gold Camp is located in the historic Abitibi mining region of Québec and is
hosts one of the highest-grade resource stage gold projects in Canada.
The Company trades on the TSX Venture Exchange under the symbol D-G-O.
Stockhouse Editorial recently caught up with Durango’s CEO, Marcy Kiesman, to update us on the Company’s drill program at its Trove Property and to discuss the latest and most relevant Company happenings with our investor audience.
SH: So, Marcy, can we start off with a little background history about Durango Resources?
MK: Durango has been holding a few strategic properties since 2010, one is the Trove Property which is in the Windfall Lake gold camp and the other is the Discovery Property which is located in the emerging Troilus gold camp. Durango has been successful in acquiring additional key claims such as the East Barry Property in the Windfall Lake gold camp through online staking.
SH: The company’s been busy recently. You commenced drilling at the Trove Property this fall, can you walk us through the project to date?
MK: We raised nearly $3 million this summer, and since then, we have had a busy fall program at Windfall Lake, with building and rehabilitating roads on the Trove and East Barry Properties. While our crew was in the field, they discovered new outcrops by mechanical trenching on the Trove Property which has helped us to identify some of the types of rocks in the area. We know the Windfall Lake deposit area is cross-cut by several east trending and NE trending shear zones which delineate major structural domains so we are happy to find similar structures on trend with Windfall Lake on our Trove Property.
SH: Can you give us some details about the Trove Property specifically if the early results look very promising?
MK: Yes, so far, we are hitting some zones of mineralization with our drilling despite not yet being able to access the priority holes we had planned. Heavy rainfall and unusually warm temperatures this year have not permitted us to gain access to the drill pads we had created earlier this fall. We have been battling swamps and currently wet snow which does not make it possible to get the drill into the key target areas. Durango has initiated a plan B which includes drill testing for structure in some key areas where we have drill access to gain an understanding of the geology below surface. The Trove and East Barry Properties at Windfall Lake have extremely limited outcrop and have had no previous drilling completed, so at this point all information is good information below the surface to help us understand the local geology and complex structures. Durango plans to initiate drilling on the original plan A targets as early as mid January 2021 and has been packing the roads for drill pad access.
SH: In your latest news release it mentions, “Durango has relied to date on surface geochemistry and induced polarization for planning its 2020 drill program.” For metals & mining investors unfamiliar with the geoscience behind this type of surveying, can you explain the benefits?
MK: Yes, much of the Windfall Lake area does not have many outcrops (visible rock coming out of the ground) which makes it difficult to understand the local geology. A few methods we use to combat this lack of geological knowledge is completing till surveys (digging down to collect dirt samples below surface) to test for gold anomalies in the soil. An additional method we used is an induced polarization program which is basically inserting rods into the soil connected by electrical wires and then injecting electrical current through the lines. This process identifies resistive and non resistive areas, corresponding to the different types of rock which can help to identify the location of lithological changes as well as the location of highly mineralized structures.
SH: What sets Durango apart from other junior gold mining companies in this space and what makes your business model attractive to investors?
MK: Durango has a low market cap of approximately $10M and has multiple wholly owned properties in two of the busiest gold camps in Canada. We are one of the few microcap juniors left in the Windfall Lake area as our immediate neighbour Osisko Mining Inc. (TSX-OSK) boasts a market cap of over $1B. We share fault systems and are testing it to see if our geology is similar with our current drill program at the Trove Property. We have very high insider ownership and I remain the largest shareholder by far – holding over 10 million shares on a partially-diluted basis. If Durango can prove similar host rock geology to our neighbour(s), combined with the shared faults, we could be one of the few junior miners to provide our shareholders with significant gains.
SH: The price of gold reached an all-time high of USD$2,069 per ounce on August 6th, rising by 35 percent since the start of 2020, and 40 percent from the March lows. Can you tell our investor audience where you see the gold market heading in the next 12 months?
MK: In the past year gold prices have ranged from around $1,450 to highs of $2,069 USD. In late November Canada’s deficit forecast was reported at $381B which is up an additional $138B from the forecast announced in July this year. These are historic and growing deficit levels in Canada overshadowing historic WW2 levels of $18B. What this says to me is that the gold price is not going lower anytime soon – the feds are flooding the markets with currency and it is not just in Canada – its global. The good news is increased gold price brings financings which are great for exploration and explorers. With money, the juniors can explore their properties which brings in new discoveries, increasing the share prices and rewarding the shareholders who have risked their capital while supporting them. We all win.
SH: Your corporate deck states, “The Trove Property project at Windfall Lake, Quebec is drill ready with multiple untested, high-priority exploration targets. What does this mean for Company shareholders and potential investors?
MK: Durango is tied onto some serious gold deposits at Windfall Lake with indicated and inferred resources of over 7M ounces of gold. We share the same faults, claim borders and hopefully geology which we plan to determine in Q1 of 2021.
SH: ‘Value and opportunity’ are gold exploration catchphrases that really get the attention on resource sector investors? What can you tell them make your mining projects so intriguing and attractive?
MK: There are very few grassroot junior exploration plays left at Windfall Lake Gold Camp and Durango has properties tied to both Osisko Mining and Bonterra Resources covering multiple shared gold bearing faults which is an attractive position to hold in my opinion. Durango also holds a large property in the emerging Troilus Gold Camp which covers an interesting geological position and is on trend with the Troilus Gold Mine. Durango’s Discovery Property is near the Kenorland Minerals grassroots discovery which intersected 29m at 8.47 g/t Au in the Frotet Evans greenstone belt of Quebec earlier in the summer.
SH: And lastly, Marcy, if there’s anything else that I’ve overlooked that you’d like to add to the article (podcast), please feel free to elaborate.
I would like to take a moment to say “thank you” to our shareholders who have been so supportive of Durango. We are finally in the position we have been waiting for now that we have funds to drill our targets at Windfall Lake in Quebec. We are committed to take the time and resources and deploy them as strategically possible at Windfall Lake so that we can bring value to our shareholders in what we expect is going to be a very exciting year ahead.
For more information, visit
durangoresourcesinc.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.