Daura Gold Announces Binding Offer to Acquire the Yanamina Epithermal Gold-Silver Project in Ancash Peru
Daura Gold Announces Binding Offer to
Acquire the Yanamina Epithermal Gold-Silver
Project in Ancash Peru
Vancouver, British Columbia--(Newsfile Corp. - June 2, 2025) -
Daura Gold Corp. (TSXV: DGC)
(the
"
Company
" or "
Daura
") is pleased to announce that it has entered into a binding offer letter, dated May
29, 2025 (the "
Offer"
), with EV Resources Limited ("
EVR
"), an arms-length party, to acquire the
Yanamina gold-silver project (the "
Yanamina Project
") located in Ancash Department of central Peru
(the
"Transaction
").
Highlights
Acquisition of the Yanamina Project, approximately 40km north of Daura's high-grade Antonella
target and the bonanza grade San Luis Gold Project owned by Highlander Silver.
The Yanamina Project has historical indicated resources of 1,566,900 tonnes at 1.65 g/t Au for a
total of 83,100 (oz) of gold (Au) and 3,235,000 tonnes at 1.19 g/t Au for a total of 123,700 ounces
of Au.
The Company plans to undertake work to verify and update the historical estimate as a
priority.
Significant exploration upside and multiple drill targets on the property given limited and focused
historical drilling.
Open extensions to resources at depth and lateral extensions and significant
faulted extension target at depth.
Previous drilling identified a high-grade core zone locally grading at 5 g/t Au over 5 meters within a
mineralized envelope averaging 2.5 g/t Au over intervals from 20-30 meters.
Daura has an opportunity to update the Yanamina historical resource estimate and bring a current
resource estimate into Daura's resource profile.
Yanamina compliments Daura's project portfolio in the Ancash Department, which is well-known for
mining in Peru with major historical production from Barrick's Pierina gold mine, approximately
40km from Yanamina.
And 94km from the Tier 1 Antamina Mine, owned by Glencore, Teck and
Mitsubishi.
(See "
Yanamina Historical Mineral Resource
" below for further details.)
A qualified person has not done sufficient work to classify the historical estimate as a current mineral
resource and the Company is not treating the historical estimate as a current mineral resource.
Luis Saenz, Daura CEO, commented:
"The acquisition of the Yanamina Gold-Silver Project marks an
exciting prospect for Daura Gold as we expand our footprint into one of Peru's most prolific mining
districts.
Only about 40km north of our existing land package at Antonella, Yanamina is a perfect
complement to Daura's asset base."
said Luis Saenz, CEO of Daura.
"With a significant historical
resource, clear exploration upside, and proximity to premier deposits like San Luis and Pierina,
Yanamina presents a compelling opportunity to unlock value for our shareholders. This transaction
aligns with our strategy to build a high-quality portfolio of gold assets with near-term growth potential
and strong leverage to rising precious metals prices."
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Exploration Upside Potential
The historical work carried out for historical resource estimates highlighted a number of areas at
Yanamina which show potential for additional mineralization, both as an extension but also proximal to
the existing resource. As a result of the extensive and important surface alteration within the mineralized
zone, a number of these target areas can be initially geologically explored, including mapping, sampling
and geophysics, among others, to determine their potential.
An additional exploration target which remains open is the potential faulted extension to the existing
historical resource. The historical resource is located on a fault scarp and there is sound geological
evidence that the top of the resource has been removed by faulting. The extent of the "missing" upper
portion of the resource is unknown, offering a straightforward exploration target with upside potential.
In 2006, ASX-listed Latin Gold completed detailed mapping of the geology and alteration, channel
sampling, limited adit sampling, digitizing of the historic and current data base and drilled 25 diamond
drill holes totaling 1,468 meters. The drilling confirmed the geology and the near surface zone of
disseminated gold and silver mineralization, which is locally exposed in outcrop. Gold was intersected in
the majority of the drill holes and demonstrated strong continuity along strike.
The drilling also identified a higher-grade core zone locally grading 5gpt Au over 5 meters within a
mineralized envelope averaging 2.5gpt Au over intervals ranging from 20 to 30 meters. The drilling also
confirmed the coincident silver values reported historically ranging up to 20.3gpt Ag explored over 10
meters.
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Only 12 drill holes have been executed in the potential expansion area, where there are open extensions
to resources at depth and lateral extensions and significant faulted extension target at depth.
Community Engagement
As a new operator in the Yanamina area of interest, Daura recognizes the opportunity to establish new,
long-term mutually beneficial relationships with the local communities and will strive to do this from the
outset.
Daura's community relations efforts at Yanamina are underway as part of the Company's due
diligence process.
Yanamina Project Acquisition
Pursuant to the Offer the Company proposes to purchase the Yanamina Project from EVR in
consideration for an initial payment of US$150,000 in cash (the "
Initial Consideration
").
The Company may make additional payments in cash or shares to EVR as contingent consideration (the
"
Contingent Consideration
") upon completion of certain milestones in relation to the Yanamina
Project. The Contingent Consideration is only accrued and payable if and when the following milestones
are achieved:
a
.
On the 12-month anniversary from Closing, the Purchaser will pay to the Vendor US$150,000 in
cash;
b
.
On the obtaining of a social license (that will allow a minimum 10,000 meter drilling campaign) with
the communities in the area of influence of Yanamina, the Company will pay EVR US$1,700,000 in
cash and/or common shares of the Company at the option of the Company;
c
.
Within 60 days of the start of construction of Yanamina, the Company will pay EVR US$2,000,000
in cash and/or common shares of the Company at the option of the Company; and
d
.
Within 60 days of the start of Commercial Production on the Project, the Company will pay EVR
US$2,000,000 in cash and/or common shares of the Company at the option of the Company.
Any common shares issuable to the Vendor, at the election of the Company, will be issuable at a
deemed price equivalent to the volume-weighted average closing price of the common shares of the
Company on the TSX Venture Exchange in the thirty (30) trading days prior to issuance and will be
calculated using the applicable exchange rate posted by the Bank of Canada immediately prior to
issuance.
The deemed price of the common shares will be subject to such minimum pricing as is
permitted by the policies of the TSX Venture Exchange and in no case will common shares be issuable
at a deemed price of less than (Cdn)$0.05.
Project Agreement
The Yanamina Project is currently subject to the terms of a project agreement (the "
Project
Agreement
") involving Happy Diamonds Pty. Ltd. ("
Happy Diamonds
").
Following completion of the
Transaction, in addition to the payments outlined above, the Company will assume responsibility for all
obligations due and owing under the Project Agreement, including the following payments owing under
the Project Agreement:
i
.
on or before the fifth (5th) business day following the commencement of construction of
infrastructure for commercial production at the Yanamina Project, pay to Happy Diamonds the sum
of US$1,500,000 in cash;
ii
.
on or before the tenth (10th) business day following the date of the initial gold pour from the
Yanamina Project, pay to Happy Diamonds the sum of US$1,000,000 in cash;
iii
.
on or before the tenth (10th) business day following the first (1st) anniversary of the date of the
initial gold pour from the Yanamina Project, pay to Happy Diamonds the sum of US$1,000,000 in
cash;
iv
.
on or before the tenth (10th) business day following the second (2nd) anniversary of the date of the
initial gold pour from the Yanamina Project, pay to Happy Diamonds the sum of US$1,000,000 in
cash; and
v
.
on or before the tenth (10th) business day following the production of 275,000 ounces of gold (or
gold products containing the equivalent of such amount of refined gold using, for other precious
metals, the gold equivalent ounces thereof) from the Yanamina Project, pay to Happy Diamonds
the sum of US$1,000,000 in cash.
Completion of the Transaction remains subject to a number of conditions, including negotiation of
definitive documentation and approval of the TSX Venture Exchange.
The Transaction cannot be
completed until these conditions have been satisfied, and there can be no assurance that the
Transaction will be completed as presently contemplated.
The Company does not expect the Transaction to result in a change of control for the Company, or to
constitute a "fundamental acquisition" for the Company, within the meanings prescribed by the policies
of the TSX Venture Exchange.
The Company does not anticipate that the Yanamina Project, if acquired,
would represent the majority of the assets of the Company, nor is pit expected to the principal focus of
the Company in the next twelve months.
Yanamina Historical Mineral Resource
The historical mineral resource is included in a Technical Report titled "Deposit Modeling, NI 43-101
Resource Estimate, Preliminary Economic Assessment: Yanamina Gold Property" (the "
Technical
Report
"), with an effective date of February 28, 2011.
The report was prepared as a National Instrument
43-101 -
Standard of Disclosure for Mineral Projects
("National Instrument 43-101") technical report for
Coronet Metals Inc. The historical estimate is considered to be relevant and for the purposes of the
Company proceeding with the Transaction as it provides an indication of the potential significance of the
Yanamina Project.
The Technical Report provides details on mineral resources and reserves, as well a potential
development option for the Yanamina Gold Project that considers underground mining and processing
using conventional cyanide leach methods. However, the prices, costs, and development strategy and
options are no longer current and need to be re-evaluated using assumptions and qualifications that are
more reflective of today's environment.
The Yanamina gold and silver deposit is a volcanic hosted, low sulphidation, epithermal quartz system.
The Yanamina historical Mineral Resource data base has a total of 2,643 samples, spanning 3,402
meters from 78 drill holes.
The indicated resource covers approximately 17 hectares and is outlined by a
search area of 25 metres; within this area, the drill holes intersected similar grade-thickness composites
at a 1g/t Au cut-off. The inferred resource is outlined by a search area of 50 metres. The holes drilled in
this area intersected mineralization defined by 0.5gpt cut-off composites. Continuous blocks within the
25m search radius have thus been defined as an Indicated Resource while the blocks outside of this
zone at a 50m search radius and those blocks above the 0.5 g/t Au cut-off in Zone 2 are categorized as
an Indicated Resource. Further drilling at 25m spacing would be required to define additional Inferred
Resources in both zones.
Historical Mineral Resource Summary
Summary of Historical Mineral Resources Yanamina Gold Deposit
(0.50 g/t Au Cut-Off Grade)
Resources
Tonnes
Grade (g/t Au)
Total Ounces
Indicated
1,566,900
1.65
83,100
Inferred
3,235,000
1.19
123,700
Notes:
-
A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the Company is not
treating the historical estimate as a current mineral resource.
Additional work including some re-sampling of historical core and a review of the
geological model, will be necessary to verify the historical resource estimate.
Qualified Person
All scientific and technical information contained in this news release has been reviewed, verified and
approved by Owen D. W. Miller, Ph.D. Member AIG, a qualified person as defined in National Instrument
43-101. Dr. Miller acts as an independent third-party consultant of the Company.
ABOUT DAURA GOLD CORP.
Listed on the TSX Venture Exchange, Daura Gold Corp is advancing high-impact exploration projects in
Peru's renowned Ancash region. Daura Gold owns a 100% undivided interest in over 8,100 hectares of
exploration concessions in Ancash, including the 900-hectare Antonella target, which is the primary
focus of Daura Gold's current exploration efforts.
For further information please contact:
Daura Gold Corp.
543 Granville, Suite 501
Vancouver BC V6C 1X8
William T.P. Tsang CFO and Secretary
(604) 669-0660
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
Information set forth in this news release contains forward-looking statements. These statements reflect
management's current estimates, beliefs, intentions and expectations; they are not guarantees of future
performance. Daura cautions that all forward-looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many of which are beyond Daura's
control. Such factors include, among other things: future prices and the supply of gold and other precious
and other metals; future demand for gold and other valuable metals; inability to raise the money
necessary to incur the expenditures required to retain and advance the property; environmental liabilities
(known and unknown); general business, economic, competitive, political and social uncertainties;
results of exploration programs; risks of the mineral exploration industry; delays in obtaining
governmental approvals; adverse weather conditions and failure to obtain necessary regulatory or
shareholder approvals. There can be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Daura disclaims
any intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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