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Budget and Construction Schedule Finalized for Duran Ventures’ Aguila Norte Processing Plant

Duran Ventures Inc. ("Duran" or the "Company") is pleased to announce that the Company has finalized the budget and construction schedule for the Aguila Norte Plant near the city of Trujillo in Northern Peru (see news release dated September 11, 2015).

Highlights of the proposed mineral processing plant construction are:

  • On-site earthmoving for equipment mounting is scheduled to commence during the last week of October, 2015 and it is expected that construction will be complete by the end of March, 2016
  • An all-in construction cost of US$1.3 million that is inclusive of fully tested crushing, milling and flotation circuits, tailings dams, closed circuit security system, camp construction for a local workforce of 25 and onsite logistical overheads
  • Mineral processing will be via flotation circuits designed to produce up to three distinct concentrates enabling processing of a wider spectrum of multi and poly-metallic sulphide ores. Initial plant throughput is rated at 100 tonnes per day ("TPD")
  • Initial ground preparations and plant layout will allow for the sequential addition of a carbon-in-pulp ("CIP") gold leaching circuit and incremental expansion to a 350 TPD throughput
  • Requisite permitting is in place under the Peruvian government's formalization mandate to operate up to 100 TPD. The Company is well advanced to receive full permits and licenses which will enable the expansion of the Aguila Norte Plant

The Company's management spent several months evaluating various investment scenarios and operating parameters for its Aguila Norte Plant which included processing methodologies, working capital optimization, ore supply reliability, metallurgical consistency, transporting logistics and security of both transported ore and processed product. The conclusion was that the best risk/reward profile on existing cash reserves could be obtained by constructing a 100 TPD floatation circuit, rather than a CIP gold leaching circuit as previously announced. The principal advantages of the former as determined by the Company's assessments are:

  • more secure long term suppliers with larger tonnage shipments
  • reduced dependence on small scale artesanal mining as a supply source resulting in lower administrative and legal costs
  • reduced working capital (less onerous ore payments)
  • improved metallurgical consistencies

During the same period the Company interviewed several engineering firms for overseeing construction of the project. Duran is pleased to announce that it has secured the services of JPC Estructuras y Concreto SAC, a Lima-based contractor headed by mechanical engineer Mr. Jorge Peña. In particular Mr. Peña has a long association with Fundicion Callao ("FUNCAL") which will be supplying most of the plant components, including the ball mill and cone crusher. FUNCAL has been operating its foundry and metal machining business in Peru since the1930's and is renowned for its high quality milling and grinding equipment.

Jeffrey Reeder, P.Geo., and a qualified person as defined in National Instrument 43-101, has prepared and approved the scientific and technical disclosure contained in this news release.


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