When good people go gold hunting: drills turn at Durango (DGO.V)

A Fruit Salad Tree is engineered to grow 7 different types of fruit including oranges, lemons, and pomelos.

Durango Resources (DGO.V) is the Fruit Salad Tree of mineral exploration, with 7 diversified Canadian projects:

  1. Dianna Lake, Saskatchewan
  2. Whitney Northwest, Ontario
  3. NMX East, Quebec
  4. Mayner’s Fortune Limestone, BC
  5. Windfall Lake Properties, Quebec
  6. Buckshot Graphite, Quebec
  7. Découverte (Discovery), Quebec

On June 7, 2018 Equity Guru writer Greg Nolan published an overview of DGO and its unique all-female management team.

Today, we are going to focus on the Découverte Gold Property located 120km north of Chibougamau, Québec.

On July 4, 2018 Durango announced that it has hired Chibougamau Diamond Drilling (CDD) to start poking holes in the Découverte Gold Property.

CDD are veteran drillers in the area, having worked at the nearby Troilus Mine which produced a couple of million ounces of gold.

“Chibougamau Diamond Drilling are experienced and familiar with both the area and geology,” stated Durango’s President Marcy Kiesman, “Durango is well positioned for discovery in the Eeyou Istchee James Bay Territory and we are excited to get the drills turning on our grassroots Découverte Gold Property.”

It’s been an 8-year journey to get Découverte drill ready.

“We chipped away at it, spending a few hundred thousand every year,” stated Keisman in an exclusive Equity Guru Interview.

  • 2010 Durango (then Atocha) enters into option on the Découverte claims
  • 2011 Fugro DIGHEM. Heli-borne survey. EW lines, Magnetic, EM and Resistivity
  • 2012 Durango receives 100% of mineral rights for Découverte claims.
  • 2012 Soil sampling
  • 2012 Rock sampling
  • 2014 Outcrop sampling and mapping
  • 2014 Boulder sampling and rock sampling and outcrop mapping
  • 2014 grain counts on silt and clay fraction
  • 2015 Geophysical ground survey. Magnetic, AMT
  • 2017 Report creates 9 target areas for exploration follow-up
  • 2018 Data review, presents geological model on Découverte and proposes a 3,800 m drilling program to test inferred mineralized trends in 6 areas

On January 16, 2018, DGO hired Danae Voormeij, a consultant with Mynah Exploration to analyze all the Découverte data, determine the gold potential, and to design a drill program.

Program Highlights:

  • Six target areas are defined on the Property, each ranging from 100m to 400m along strike
  • Mineralization in the Main Zone is focused within a 1km by 0.3km northwest trend
  • The Company’s claims cover a deformed fold nose in the Frotet-Evan Greenstone Belt
  • There is evidence of a well-preserved gold system, hosted in finely-bedded and iron-rich metasediments in contact with metavolcanic rocks
  • Rusty and sulphuric polymict conglomerates have been mapped in the Main Zone along 1km strike
  • The Property is easily accessed, being only 10km from the all-season Route Nord
  • A high voltage powerline, part of Quebec’s Plan Nord, runs directly through the Property
  • The technical review supports a diamond drilling program of 3,800m across 36 holes
  • Drill holes are relatively shallow, ranging from 40 to 180m, averaging 102 m in length

“We are intrigued by the compelling geology at Découverte and are extremely pleased with the progress that Ms. Voormeij has accomplished thus far,” stated Kiesman.

Danae Voormeij has more than 15 years’ experience in gold exploration and a proven track record of discovery; she led Hummingbird Resources to the grassroots discovery of 2.4 million ounces of gold in Liberia.

The cold hard metrics of wealth creation insist that you ignore emotional inputs.

But after watching videos of a slippery marijuana dream-merchant – and reading about disgustingly greedy CEO’s – it’s hard not to root for this hard-working, down-to-earth DGO team.

According to Mining and Energy, Ms. Voormeij trains young people how to explore for gold in emerging countries in the tropics.

Découverte is in the Frotet-Evans Greenstone Belt with Troilus gold-copper mine 60 km to the northeast and Goldcorp’s Éléonore gold mine 240 km to the north along the same northwest trend.

The dominant structural feature within the Property is a large synclinal fold nose composed of Archean metasedimentary and metavolcanic rocks that has been deformed by northwest and northeast-trending faults and intruded by syn-orogenic granodiorite bodies. Rusty and sulphuric polymict, undeformed conglomerates have been mapped within the Property, in the hanging wall of the Main Zone.

If you know what a “synclinal fold nose” is, please immediately reward yourself with a Tiki Drink Bowl.

Drilling is scheduled to begin in early July.  Kiesman told us she estimates the whole program will cost about $650,000, including the assaying.

The 2,400-meter diamond core program will test the Main Zone Nord, Main Zone Central and Shear Zone 1 at the 60 square kilometer Découverte project area.

The writer purchased DGO stock for two reasons.

  1. He feels it’s a good investment
  2. It’s an investment he feels good about.

A Fruit Salad Tree can be harvested 12 months a year.  DGO has 6 other assets. In future articles we’ll continue to shake the DGO tree.

We believe the Découverte drill program will bear fruit.

DGO is currently trading at .07 with a market cap of $3 million.

Astonishingly, the Découverte project has never been drilled before.

Full Disclosure: Durango is an Equity Guru marketing client, and we own stock.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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