DÉCOUVERTE Positioned for Discovery in James Bay, Quebec. Investor Presentation, January 2018 by Danae Voormeij, MSc, PGeo
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1 DÉCOUVERTE Positioned for Discovery in James Bay, Quebec Investor Presentation, January 2018 by Danae Voormeij, MSc, PGeo
2 Location Maps and Infrastructure Location: Durango Resources 100% owned Découverte Gold Project (the Property ) is located 100 km north of Chibougamau, in the highlyprospective new gold camp of James Bay Territory, Quebec. The Project is 60 km from the Troilus mine, which produced over 2 Moz of gold from and has remaining resources of another 2 Moz of gold (Sulliden, 2016). Découverte Access to Roads and Power: The greenstone belts of the Superior Province contain major faults and shear zones (black solid lines) that are targeted in gold exploration and mining. Découverte is in the Frotet-Evans greenstone belt, along the same north-northwest trend (red dashed line) as several large gold deposits, including Goldcorp s Éléonore gold mine and Eastmain s Eau Claire/Clearwater project. There is an all-year weather highway, Route Nord, within 10 km from the Property, supplying direct access from Chibougamau to site. Stornoway uses this same highway to reach their Renard diamond mine, all year round. Numerous logging roads provide access to the Property and a hydro-electric 735 kv (high voltage) power line crosses the project site. 2
3 Regional and Deposit Geology The Découverte claims cover 5,700 hectares (57 km 2 ) of a structurally important part of the Frotet-Evans Belt Découverte Claims outline N 2.5 Km Lac Assinica The Frotet-Evans greenstone belt is composed of tightly-folded metasedimentary (beige, yellow and brown units) and metavolcanic rocks (green) surrounded by large granite plutons (pink). The Frotet-Evans Break (black dashed line), runs from West to East for several hundred kilometers along the belt and bends to 050 (northeast) within the project area. The Property claims (yellow outline) cover a south-dipping synclinal fold nose deformed by northwest fault zone and northeast structures. There is a small felsic intrusion (orange) within the fold nose. Inferred mineralized trends (red lines) are based on geophysical and geochemical data and are the targets for the proposed drilling program. Scale bar is 2 km. 3
4 Découverte Work Completed Year Découverte is a grassroots gold project that has not been drilled before Description of Field Survey 2010 Durango (then Atocha) enters into option on the Découverte claims for shares and $200k work commitment 2011 Fugro DIGHEM. Heli-borne survey. EW lines, 100 m spacing for 260 line kms. Magnetic, EM and Resistivity 2012 Transfer of claims. Durango receives 100% of mineral rights for Découverte claims Soil sampling (n=343) Select soil grids based on geophysics 2012 Rock sampling (n=65) Outcrop sampling and mapping by Dany Boilard 2014 Rock chip sampling (n=102) Outcrop sampling and mapping 2014 Boulder sampling (n=65) and rock sampling (n=41) and outcrop mapping 2014 Basal till sampling (n=30) 12 kg till samples, gold grain counts on silt and clay fraction by Peter Dimmel 2015 INRS-ETE Geophysical ground survey. Magnetic, AMT, Frequency Domain EM and Gravity along three sections, lines L100, L200 and L300 for 9.9 line kms. Includes 2D Inversion on line L300 showing large conductor Marc-LaFlèche delivers a report on geophysical results for the Property and presents nine (9) target areas for exploration follow-up 2018 Danae Voormeij reviews all data, presents geological model on Découverte and proposes a 3,800 m drilling program to test inferred mineralized trends in 6 areas Frotet-Evans (thrust) Break Shear Zone 2 Swift drill target Mag Low Gravity high Conductor Swift drill target 2D inversion along line L300 (view to west) shows a large conductor to 500 m depth (by LaFlèche, see NR October 2017) 4
5 Découverte Drill Target Areas Most of the mineralized trends at Découverte are on the north side of the Frotet-Evans Break, which is likely a south-dipping thrust fault that preserved the gold systems in the footwall 1. MAIN ZONE 2. SHEAR ZONE 1 3. SKIP VEIN 4. BIF-VEIN 5. SWIFT VEIN 6. SHEAR ZONE 2 1 Rusty wacke outcrop in Main Zone Shear-zone hosted quartz veins with cross-cutting extensional veins at Shear Zone 2 5
6 Découverte Main Zone Felsic intrusion Main Zone Target: Drilling of Main Zone is focused within a prospective mineralized corridor 1 km long and 0.3 km wide. Scale bar is 250 metres. Structurally-bound by a northwest-trending fault zone, metasediments here are striking 145 and dipping to the southwest. Magnetic survey results show how lithologies are faulted by northeast structures, resulting in isolated lithons (hot pink colours) of competency contrasts between quartzite, wacke and iron-rich layers. Ground geophysical survey identified conductors with coincident mag and gravity anomalies along line L100 (at 180 m) and L300 (at 740 m and 1120 m) that correlate well with linear conductors and soil anomalies Main Zone Conglomerate: Outcrop of rusty, sulphur-smelling polymict conglomerate (left), which is a prospective vector for gold mineralization. Drill holes are aiming below this conglomerate. Soil geochemistry for Main Zone shows a northwest trend of anomalous Au + As + Cu + Zn + Sb (as well as Y + Tl), with gold in soil values of up to 174 ppb Au Ten (10) drill holes are proposed along 7 drill fences to test the Main Zone along a potential 1,000 m strike and down dip 6
7 Découverte BIF Vein Target BIF Vein Target: Two images (left) showing BIF-Vein with a northeast trend (yellow dashed line). Scale bar is 250 metres. Top image shows magnetic high (warm colours) for the host rocks, which were mapped as bands of magnetite-silica layers in metasediments, or banded iron formation (BIF) with a foliation trend of 237 and dip of 57 to northwest. Lower figure shows a large resistivity low (orange) along the same inferred trend, with a coincident magnetic high, which could be caused by pyrrhotite sulphidation associated with gold mineralization. The BIF layers may have formed a drag fold in the contact with the Frotet- Evans Break/thrust (dashed black line), resulting in a structural trap with gold potential. This is the target for drilling at BIF Vein. Soil geochemistry shows a northeast anomalous Au + As + Bi + Sn trend, anomalous gold in soil values of 147 and 177 ppb Au Eight (8) drill holes are proposed along 4 drill fences to test the BIF Vein along 400 m strike and down dip. 7
8 Proposed Drilling Program Drill test six target areas with inferred mineral trends ranging from 100 to 400 m in strike length 36 diamond core drill holes for 3,755 m (approximately 3,800 m) With 1 diamond-core drill rig this would take 2-3 months of drilling (2 shifts per day) Drill holes are proposed along metric grids (50 x 50 m), for ease of future potential resource drilling Planned drilling is along drill fences, from which geological cross-sections can be created towards resource modelling Average hole length is 102 m. Main Zone requires deeper drilling (average 121 m) to reach beneath the conglomerates Découverte Drill Target Area Potential Strike Length (m) Proposed Drilling (m) Main Zone Nord 400 1,205 (10 holes, 4 fences) 121 Main Zone Central 250 and (6 holes, 3 fences) 130 Shear Zone and (4 holes, 2 fences) 98 Skip Vein (2 holes, 1 fence) 95 BIF Vein (8 holes, 4 fences) 76 Average Hole Length (m) Swift Vein (4 holes, 3 fences) 90 Shear Zone and (3 holes, 2 fences) 73 Rusty and sulphur-smelling conglomerates at Main Zone potentially indicate underlying gold mineralization 8
9 Summary Durango is Positioned for Discovery at Découverte Durango Resources is preparing to drill their 100% owned Découverte Gold Project, located in James Bay, Quebec The James Bay region is considered a highly-prospective new gold camp, with multi-million ounce, high-grade gold systems being discovered and mined, including Goldcorp s Roberto (Éléonore) and Eastmain s Eau Claire (Clearwater) The geology of the Project area consists of a large synclinal fold nose composed of metasedimentary and metavolcanic rocks that have been cut by major NW and NE faults and intruded by a small granodiorite The geological model for Découverte is that the Frotet-Evans Break is a thrust fault with well-preserved gold mineralization in the footwall (north side) of the Break, where most of the gold targets are located. Host rocks for potential mineralization are finely bedded and iron rich metasediments in contact with metavolcanic rocks Multiple inferred mineralized trends were defined by Danae Voormeij, PGeo., and are based on geophysical survey results from 2011 and 2017, geochemistry data from rocks and soils, and outcrop mapping by Durango in The Project has never been drilled or trenched before A drill program is proposed for approximately 3,800 m of diamond core drilling across 36 holes to test six high-priority target areas containing inferred mineralized trends ranging from 100 m to 400 m in strike length 9
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