Aguila copper-moly targets show promise

Vancouver — New exploration at an old site is proving productive, as joint-venture partners Duran Ventures (DRV-V, DUVNF-O) and MacMillan Gold (MMG-V, MMEEF-O) are learning from the first drill results out of the Aguila copper-molybdenum project in north-central Peru.

Since July, project operator Duran has drilled five holes at Aguila. The first three were designed to confirm historic grades in the Aguila Main copper-molybdenum porphyry, including the western edge of the target known as the west contact zone. Hole 1 returned 250 metres of 0.65% copper and 0.029% molybdenum from surface, ending in mineralized porphyry.

Collared 50 metres west, hole 2 cut 108 metres of mineralized diorite porphyry averaging 0.68% copper and 0.031% molybdenum, followed by 180 metres of mineralized quartzite with molybdenite veinlets that returned 0.41% copper and 0.038% molybdenum. Over its entire 533-metre length, hole 2 returned 0.338% copper and 0.023% molybdenum.

Moving west 50 metres, hole 3 intersected 510 metres grading 0.525% copper and 0.043% molybdenum from surface. The upper 399 metres averaged 0.635% copper and 0.045% molybdenum.

Holes four and five tested Aguila East, a porphyry target roughly 300 metres east of the main zone. Geological work and surface sampling indicated the presence of a mineralized system similar to Aguila Main, but the east zone had never been drilled. Hole 4, the first into the target, returned 371 metres grading 0.343% copper and 0.02% molybdenum from surface. The drill was stopped short of its target depth due to equipment limitations. Results from hole 5 are pending.

The Aguila project consists of the 10-sq.-km Pasacancha I concession and the 1-sq.-km El Halcon concession that it almost surrounds. In the 1970s, a Peruvian company put Aguila into production for a short time, processing 6,000 tonnes of ore a day. The production left an open pit 200 by 150 metres, with an average depth of 20 metres.

MacMillan started staking claims in the area in 1996. In 1997, MacMillan and Rio Tinto (RTP-N, RIO-L) co-staked the key 1-sq.-km block over the Aguila pit and for a short time, Rio funded exploration as part of an earn-in agreement. In 2000, MacMillan expanded its landholdings by optioning the Pasacancha property, adjacent to and just east of Pasacancha I, from Inca Pacific Resources.

In 2003, Duran and MacMillan signed a joint-venture agreement allowing Duran to earn a 50% interest in Aguila by making cash payments of US$20,000 a year for four years and handing over 1 million common shares in four transfers. Duran expects to complete the 50% earn-in by year-end.