eResearch Corporation www.eresearch.ca Update Report March 4, 2011 Recommendation Speculative Buy Risk High Price (March 4, 2011) $0.32 52-Week Range $0.43 - $0.10 Target Price (12 Months) $0.60 Shares O/S 174.77 million Market Cap $55.9 million Average Daily Volume 50-day: 678,300 200-day: 375,300 Year-End December 31 Salient Statistics Book Value Per Share $0.09 Price/Book Value 3.44x Properties Per Share $0.05 Monthly Burn (2010e) $39,300 Monthly Burn (2011e) $41,000 Analysts Shash Patel, B.Sc., MBA Bob Weir, B.Sc., B.Comm, CFA eResearch Corporation 56 Temperance Street Suite 501 Toronto, ON M5H 3V5 Telephone: 416-643-7650 Toll Free: 877-856-0765 DURAN VENTURES INC. ($0.32; TSX-V: DRV) Data Source: www.BigCharts.com UPFRONT A fully-funded exploration and development program over the next 12 months that includes 15,000 to 20,000 metres of drilling at the Company’s flagship Aguila copper-molybdenum project, as well as drilling at its Corongo and Iguila projects, could prove rewarding for investors should Duran Ventures Inc. (“Duran” or the “Company”) capitalize on its drilling efforts. RECOMMENDATION AND TARGET PRICE Our Recommendation and Target Price were placed Under Review in February 2011, when the stock price surpassed our 12-month Target Price of $0.28. We have selected a new 12-month Target Price of $0.60, which is supported by our derivation of an intrinsic value for the Company using the eResearch-derived Property Ratio Method (see Valuation section on page 5). This removes the stock from being Under Review, and we iterate our “Speculative Buy” Recommendation. PROFILE Duran Ventures Inc. is a Canadian-based junior exploration and development company that is focused on large-tonnage mineral deposits in Peru. Its flagship project is the past-producing Aguila copper- molybdenum property in the region of Ancash, in northern Peru.
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eResearch Corporation www.eresearch.ca
Update Report March 4, 2011 . . . . . . . . . . 3
Recommendation Speculative Buy
Risk High
Price (March 4, 2011) $0.32
52-Week Range $0.43 - $0.10
Target Price (12 Months)
$0.60
Shares O/S 174.77 million
Market Cap $55.9 million
Average Daily Volume 50-day: 678,300
200-day: 375,300
Year-End December 31
Salient Statistics Book Value Per Share $0.09
Price/Book Value 3.44x
Properties Per Share $0.05
Monthly Burn (2010e) $39,300
Monthly Burn (2011e) $41,000
Analysts Shash Patel, B.Sc., MBA
Bob Weir, B.Sc., B.Comm, CFA
eResearch Corporation
56 Temperance Street
Suite 501
Toronto, ON M5H 3V5
Telephone: 416-643-7650
Toll Free: 877-856-0765
DURAN VENTURES INC. ($0.32; TSX-V: DRV)
Data Source: www.BigCharts.com
UPFRONT
A fully-funded exploration and development program over the next 12
months that includes 15,000 to 20,000 metres of drilling at the Company’s
flagship Aguila copper-molybdenum project, as well as drilling at its
Corongo and Iguila projects, could prove rewarding for investors should
Duran Ventures Inc. (“Duran” or the “Company”) capitalize on its drilling
efforts.
RECOMMENDATION AND TARGET PRICE
Our Recommendation and Target Price were placed Under Review in
February 2011, when the stock price surpassed our 12-month Target Price
of $0.28. We have selected a new 12-month Target Price of $0.60, which
is supported by our derivation of an intrinsic value for the Company using
the eResearch-derived Property Ratio Method (see Valuation section on
page 5). This removes the stock from being Under Review, and we iterate
our “Speculative Buy” Recommendation.
PROFILE
Duran Ventures Inc. is a Canadian-based junior exploration and
development company that is focused on large-tonnage mineral deposits
in Peru. Its flagship project is the past-producing Aguila copper-
molybdenum property in the region of Ancash, in northern Peru.
Duran Ventures Inc. Update Report
eResearch Corporation www.eresearch.ca Page 2
INVESTMENT HIGHLIGHTS
Duran expects to complete 15,000 to 20,000 metres of diamond drilling at its Aguila copper-molybdenum
(Cu-Mo) porphyry project in 2011. Drilling will comprise infill and extension holes in the (i) Aguila, (ii)
Aguila West, and (iii) Aguila East targets, with the Company’s goal being to define an initial Cu and Mo
resource this year.
COMMENT: The above drilling program is expected to be completed prior to the end of Q3/2011. The objective of the drilling is to (i) delineate the Aquila deposit, and (ii) provide exploration drilling south of
Aguila. In addition to drilling, the Company will perform metallurgical testing beginning in Q2/2011. Drilling and metallurgical testing will be followed up with the initiation of an NI 43-101 resource estimate
expected in Q4/2011.
Duran has planned for 2,000 metres of drilling at its Corongo gold-silver (Au-Ag) project. The Aguila and
Corongo diamond drilling programs will be undertaken at the same time.
Permitting work has begun for a planned diamond drill program at the Company’s Ichuña copper-silver
(Cu-Ag) project, with drilling expected to begin in Q4/2011. Significant Cu and Ag mineralization, and
strong geophysical anomalies, were defined during initial work campaigns in 2010.
Duran added a total of 6,106 hectares to its properties in Peru during February 2011. The new holdings
border existing project areas (Aguila, Minasnioc, Matucana, and Panteria) and increase the potential of the
projects.
The Company recently raised $7.44 million in a bought-deal private placement offering. The Company
closed the first tranche in late December 2010, for gross proceeds of $6.44 million. The second and final
tranche of the offering closed in January 2011, for gross proceeds of $1.00 million. The proceeds of the
$7.44 million bought-deal financing are being used primarily for exploration and development of Duran’s
projects in Peru.
The Company has assembled a reputable and experienced management team in the mining and finance
industries. (For more on Management and Directors, see Appendix 1, page 11 of our Initiating Report on
Duran at http://www.eresearch.ca/_report/DRV_072110-I.pdf).
COMMENT: In July 2010 Duran added Steve Brunelle to the Board of Directors. Mr. Brunelle is experienced in taking projects to feasibility. The addition of Mr. Brunelle to the board indicates that the
Company could be preparing to take its most advanced project, the Aguila copper-molybdenum project, to
feasibility, making it an attractive acquisition target for Penoles.
All of Duran’s operations are located in Peru. Peru is a mining-friendly country with low political risks
and supportive governments. The country contains favourable geology and hosts world-class deposits.
(For more on Peru, see Appendix 3, page 20 of our Initiating Report on Duran at
Exhibit 6: The map presents the Corongo property and its five prospective targets: Descubridora, Santa Rosa, Santa
Rosa East, Pucapampa, and the Breccia Zone targets.
Source: Company
Exhibit 7: Map illustrating the proximity of the Ichuña project to the (i) Canahuire project of Gold Fields and
Buenaventura, and (ii) Cerro Chucapaca project of Goldfields and Buenaventura.
Source: Company
Duran Ventures Inc. Update Report
eResearch Corporation www.eresearch.ca Page 11
ANALYST CERTIFICATION
Each Research Analyst who was involved in the preparation of this Research Report hereby certifies that:
(1) the views, opinions, and recommendations expressed in this Research Report reflect accurately the Research
Analyst’s personal views concerning any and all securities and issuers that are discussed herein and are the subject
matter of this Research Report; and
(2) the fees, earnings, or compensation, in any form, payable to the Research Analyst, is not and will not, directly or
indirectly, be related to the specific views, opinions, and recommendations expressed by the Research Analyst in
this Research Report.
eResearch Analysts on this Report:
Shash Patel, B.Sc. (Act. Sc.), MBA: Shash Patel has more than 8 years work experience in equity research, portfolio
analysis, and pensions and benefits. He joined eResearch in September 2009.
Bob Weir, B.Sc., B. Comm., CFA: Bob Weir has 44 years of investment research and analytical experience in both
the equity and fixed-income sectors, and in the commercial real estate industry. He joined eResearch in 2004 and has
been its President, CEO, and Managing Director, Research Services since May 2005. Prior to joining eResearch, Mr.
Weir was at Dominion Bond Rating Service (DBRS), latterly as Executive Vice-President responsible for supervising
the firm’s 34 analysts and conducting the day-to-day management affairs of the company.
Analyst Affirmation: I, Shash Patel, and I, Bob Weir, hereby state that, at the time of issuance of this research report, I
do not own, directly or indirectly, any shares of Duran Ventures Inc.
eRESEARCH ANALYST GROUP
Managing Director, Research Services: Bob Weir, CFA
Financial Services
Robin Cornwell
Biotechnology/Health Care
Scott Davidson
Mark Mitchell
Transportation &
Environmental Services/
Industrial Products Bill Campbell
Oil & Gas
Yuri Belinsky
Eugene Bukoveczky
Achille Desmarais
Special Situations
Bill Campbell
Mark Edwards
Bob Leshchyshen
Shash Patel
Perry Siu
Mining & Metals Yuri Belinsky
Eugene Bukoveczky
Shash Patel
Mining Advisors
George Cargill
Graham Wilson
eResearch Disclaimer: In keeping with the policies of eResearch concerning its strict independence, all of the opinions expressed in this report, including the selection of the 12-month Target Price and the
Recommendation (Buy-Hold-Sell) for the Company’s shares, are strictly those of eResearch, and are free from
any influence or interference from any person or persons at the Company. In the preparation of a research
report, it is the policy of eResearch to send a draft copy of the report, without divulging the Target Price or Recommendation or any reference to either in the text of the report, to the Company and to any third party that
paid for the report to be written. Comments from Company management are restricted to correcting factual
errors, and ensuring that there are no misrepresentations or confidential, non-public information contained in the report. eResearch, in its sole discretion, judges whether to include in its final report any of the suggestions
made on its draft report.
Duran Ventures Inc. Update Report
eResearch Corporation www.eresearch.ca Page 12
eResearch Recommendation System
Strong Buy: Expected total return within the next 12 months is at least 40%.
Buy: Expected total return within the next 12 months is between 10% and 40%.
Speculative Buy: Expected total return within the next 12 months is substantial, but Risk is High (see below).
Hold: Expected total return within the next 12 months is between 0% and 10%.
Sell: Expected total return within the next 12 months is negative.