This blog on DRV was posted today on Stockhouse.

DRV

The DRV intro blog of 6/2/2010 is a good start if you want to do some Duran DD:

http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=103918

J. Reeder has three great company-making properties and he must find the best ways to exploit these assets, carefully weighing all the new information, interest and choices being brought to bear re the properties. He also has roughly $1.3 million, gained from exercising the remaining 10 cent warrants.

J. Reeder is a smart, aggressive guy. I see him making the right choices – and with haste.

With many mining companies having signed CA’s and having boots on the ground at the Aguila Deposit, located in North Central Peru - and a copper porphyry deposit being developed immediately adjacent to it by Pinoles, the largest gold and silver producer in Mexico, Aguila enjoys a LOT of interest. And of course, there is water and hydro on or near the property.

So, will there be a JV? My educated guess is yes, as it takes a heck of a lot of drilling to prove up a copper (it’s copper/moly) deposit and I don’t see J. Reeder as doing any more dilution than needed – i.e. why do the drilling alone on the back of dilutive financing?

Junior companies can kill their companies trying to drill off hugely expensive plays themselves. J. Reeder is shrewd enough to look for a major – and not a cash-rich junior. The way to do it is definitely to do as NDM did with their Pebble Deposit. Bring in a major and get the most bang with their buck – and with the eyeballs they bring.

IMHO, with the geophysics being done on the Aguila and all the interest from majors, drilling may not be needed before a JV is achieved.

There may be large funds interested in the Aguila as well. If this is the case, I see any financings being done far north of the current SP. Note: I believe the SP will be much higher by fall.

I think it’s important to go over the Howlett Research Corp. Report on DRV of April 27, 2010 - pages 5 to 7. Here one can read a section called Selected Takeovers of Exploration Companies Active in Peru:

http://www.howlett-research.com/Research%20Reports/Duran%20-%20Howlett_Research_Report_4-27-10.pdf

Howlett compares these companies and their properties, most of which were taken over for hundred of millions of dollars, with Duran’s Aguila. It’s clear that Aguila has higher grades than ALL of them. Duran just needs more drilling to prove up the tonnage. Note: the higher grades will mean a heck of a lot in any potential takeover.

The successful acquisition of the Double Jack and its four properties (most importantly, the Ichuna) gives J. Reeder in my calculation about 5% ownership of Duran. He now has enough to be very interested – and to be very wary of dilution. These four properties cost DRV $1.2 million. Clearly, with the Ichuna being ring-staked by the Goldfields/Bueneventura major discovery, it was an absolute steal. To date the surface results are excellent, as the NR of June 1, 2010 shows:

http://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn%5Fnewsreleases%2Easp%3Fsymbol%3DV%2EDRV%26newsid%3D7757513

At a press conference on Tuesday May 11, 2010 Nicholas Holland, Chief Executive for Gold Fields Ltd. described the Chucapaca discovery; "This is probably the most significant discovery in South America over the last few years. ... we think this could get a lot bigger."

It’s interesting to note that the Ichuna has water running through its property, while the discovery property next door does not. As well, the road to the discovery runs through the Ichuna. Without a doubt, Goldfields/Bueneventura would love to JV the Ichuna.

J. Reeder will do some geophysics here with the objective of outlining fall drill targets. I think we’ll see in the fall whether this is aggressively drilled, or drilled somewhat and then JV’d. Either way, this property is a tremendous asset for the company going forward.

The Minasnioc Gold Project is DRV’s flagship gold property – and one they outbid Barrick for. My very educated opinion is Barrick made an error here and would badly like to get the property back.

Drilling gold plays like this is much cheaper than drilling for base metals. Drilling the Minasnioc should have a quick effect on the DRV’s SP. IMHO, I see J. Reeder doing a lot of drilling after completing a fall financing.

The Corongo property was talked about at the AGM. This property is located northwest of the Aguila open pit and was a past producer of gold and silver. There are numerous high priority targets for gold, silver and copper. The Corongo is under option, with the purchaser required to spend $1 million dollars over two years, the first $500,000 being spent this year. Work shall begin in August.

The new Director, Steve Brunelle (of Corner Bay and Stingray fame), like Todd Bruce (ex Pres and CEO of IAM Gold, etc), is an absolute hitter. Both these guys are going to be a big help to J. Reeder structuring deals and working with the majors and institutions. Brunelle and Bruce have signed on for a reason – and that’s to really make something of DRV.

If you haven’t read it, here’s a bullboard post I did re Brunelle’s appointment:

http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=28401669&l=0&r=0&s=DRV&t=LIST

It’s worth noting that DRV has enough cash on hand to fund its current activities. It’s also worth noting that DRV’s philosophy of owning 100% of their properties is a da-n good one – and is allowing them maximum flexibility in playing their cards.

Lastly, I promised a fellow poster that I would say some things re how a company with such good fundamentals could ever have such a low SP. Well, in a nutshell all I’d like to say is that they had some bad luck and they also had two opposing groups that wanted the other group gone. Unfortunately, the SP paid dearly for both these issues. Suffice to say, after the AGM both groups were sitting around the table having a beer – opposite each other – as J. Reeder held court. Clearly, there is confidence in his leadership and the infighting impediment is long gone.

DRV has a massive amount of blue sky. Be sure to have your position before the impending (IMHO) leg-up occurs