Categories: Precious Metals
Topics: Gold Stocks

Daura Gold (TSX-V: DGC)(OTC: DGCOF) CEO Mark Sumner on Drilling at Cerro Bayo, La Flora and Permitting Update on Peru

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the chairman and CEO of Daura Gold (TSX-V: DGC)(OTC: DGCOF), Mr. Mark Sumner. Mark, great to have you on for an update. Drills are turning at Cerro Bayo and La Flora in Argentina. How are you doing today?

Mark Sumner: I'm doing great. Thanks for having me.

Gerardo Del Real: Well, let's get into it. Look, I've had good conversations with several shareholders and I'll peek at the boards, the chat boards from time to time. And I couldn't be more excited about this drill program, because you have the potential for making it a company-making drill program, which I think, in my eyes as a shareholder that wrote a check in the most recent financing, the return on investment, given what you're putting in the ground, the potential return on investment is substantial. You have legitimate discoveries here that we're now going to be able to hopefully prove some scale and grade on.

But there has been pushback in regards to, well, why didn't the company just conserve cash and wait for Peru, which everybody is assuming is a grand slam. I'd love to start there, and then I'd love to get into why we're so excited about this drill program, because I can't wait for the assays to start coming back.

Mark Sumner: Likewise. I mean, yeah, and it's a fair question. I mean, what we have in Peru, I think, is very special. We're in one of the most prospective and what I think is one of the most exciting gold and silver districts in Peru, maybe in South America, 35 kilometers northwest of Pierina. 10 million ounces discovered by David Wohl in the 90s. It was a Barrick mine. I mean, this is, I always say elephant country, but it's elephant country. And so yeah, I mean the opportunity there is absolutely enormous.

But Cerro Bayo and La Flora brings another... It's another district scale opportunity for a small company like Daura, which is very rare. Cerro Bayo and La Flora is an absolutely enormous hydrothermal field. Again, elephant country, Deseado Massif, one of the most productive precious metals districts on the planet, south of Cerro Negro and west of Cerro Vanguardia. I mean, it's two of the most productive gold and silver mines in the world, and definitely in Argentina. Cerro Vanguardia has been in production since the early '90s, and discoveries are still being made.

Now, I think we had a very good first pass of drilling. We put just over 20 holes across 10 different targets, and returned some very good values that warrant significant follow-up. I mean, Elena is a good example, 12 meters at two grams from 11 and a half meters down hole, including two meters at 8.8 grams gold. I mean, these are really nice intercepts, and we barely scratched the surface.

So, having the drills turning right now at La Flora where we didn't drill previously, the permitting was still in process and we're drilling now, is incredibly exciting. I mean, the best surface values in the entire 28,000-plus hectare land package, some spectacular historical results up to 82 grams of surface visible gold. And then, we have followed on and replicated some of those results with 63 grams gold and 175 grams silver with visible gold in rock ship samples at surface.

Vein array, four veins, 100 meters across. I mean to me, and it's not rocket science, these are showing strong expression at surface, put the drill in the ground. So that's what we've been doing, and I think the potential is absolutely enormous. So we're very excited.

Gerardo Del Real: And again, all these holes are relatively shallow, correct?

Mark Sumner: Yeah, absolutely. Up to about 200 meters down hole, so very near surface drill testing. And that's across all the different targets. We had a really nice hit at Ingrid, where we were seeing those really wide, broad, those broad zones of silver from surface, with some nice higher grade intervals within those holes. And those are all very near surface, 36 meters down hole. So, it's pretty shallow drilling, but what we're seeing so far is really exciting.

Gerardo Del Real: I mentioned that because again, back to my original point about the potential return on investment given what you're putting into the ground dollar-wise, a discovery here that has scale and continuity, because of how shallow the mineralization hopefully is, can get quickly proven up into something that could turn significant, correct?

Mark Sumner: Yeah, correct. I mean, at Ingrid, in particular, given those wide zones of silver mineralization from surface, with some of those nice grades in between, and up to 740 grams silver over about two meters in hole five, and some nice gold values in hole one across Ingrid, we can drill that on strike, and if we can establish continuity, you can put something together pretty quickly.

Gerardo Del Real: Look, I am excited for Argentina. I'm excited for the assays. Got to ask about Peru. I mean, I think again, the perception, at least, amongst shareholders like myself and basically anyone else that has looked at Peru thinks that's a grand slam waiting to happen. Of course, I talked to you off-air, and mentioned to you it's like being a kid and waiting for Christmas and you got presents coming, but until you get there, you got to wait.

How are things coming along in Peru? I know there's been a push to expedite permitting, and I know the community support has been pretty substantial to the positive side. How are things there?

Mark Sumner: Yeah, community support is very good. Our community relations team, in my view, is best in class. Jaime Ortiz and Ernesto Lima, on Daura's board, oversees a lot of that work. It's all the former Silver Standard team. I mean, Ernesto was a project manager of San Luis for Silver Standard in the early 2000s. Jaime Ortiz put the Silver Standard community agreement in place for the entire package before they sold it to Highlander Silver.

And so those relationships with the... Sorry, Martin Zagara, our exploration manager, spectacular geologist, drilled the discovery holes at Bonita, 2016, 2017. And so these guys, not only do they know the community, Martin knows the rocks, the relationships are longstanding, and the progress is being made. These things can move very slowly even if they're going well, as you know, and as everybody has seen from the process over the last year or so.

But we believe that it's going very well. We're confident that those agreements will be put in place, and permits will be, permits will be coming for that project.

Some of the initiatives, the new administration under Keiko Fujimori, on the permitting side at the ministry, are very, very pro project. They're making huge headway and moving very, very quickly to streamline these things, and just make the permitting process a little bit easier to get through.

And particularly for small companies like ours, being able to get through a permitting process relatively quickly, quick approvals, it's very straightforward. Permits have been here before, so there's precedent. We're not reinventing the wheel. There's no crazy unknown environmental issues or paleontological issues. It's all known.

So, it's a very straightforward process, and we're excited to see how these new permitting initiatives from the Fujimori administration are going to streamline this for us. And once we get those permit... Those community agreements in place, I think that we're going to be able to run the permits.

Gerardo Del Real: Yeah. No, look, looking forward to assays from this program, looking forward to getting going in Peru. A lot to like, sub-$20 million market cap, gold bull market, silver bull market. Yes, we're in a slight consolidation, which I think is healthy. I can't think of a better time to take a peek at Daura if you don't already own shares and/or add to positions at current levels. I don't think we're going to see these prices in 2027, so I'll leave it at that. Anything to add to that, Mark?

Mark Sumner: No, just keep an eye out for the news. We're really looking forward to getting these assays back, and producing some real results for the market because we're really excited about this project in Argentina.

Gerardo Del Real: Excellent. Looking forward to it. Mark, thanks for the update. Appreciate it. Thank you.

Mark Sumner: Thanks, Gerardo. I appreciate it.

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