Aurania Reports New Gold Target Along Trend of the Kirus Copper Zone in Its Project in Ecuador
Toronto, Ontario--(Newsfile Corp. - November 27, 2018) - Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) ("Aurania" or the "Company") reports that gold and pathfinder elements typical of epithermal systems have been detected in stream sediments from an area about 5 kilometres ("km") long in the Tinchi target in the Company's Lost Cities Cutucu project ("Project") in southeastern Ecuador. The Tinchi target lies along trend of the Kirus area in which high-grade copper has been discovered (see news release dated November 1, 2018).
Aurania's President, Dr. Richard Spencer commented, "Many epithermal gold-silver deposits throughout the world have a close genetic relationship with porphyry copper or copper-gold deposits. A similar relationship is emerging that the new Tinchi gold target and the Kirus copper target are part of a single mineralizing system that lies entirely within the Project area. These deposits are often linked by fault corridors - conduits along which the metal-bearing fluids derived from the copper porphyries flow, evolve and cool to form epithermal gold-silver deposits."
"The recognition of linked epithermal and porphyry systems confirms that we are in "elephant country" - it highlights the potential for the Project to contain very large deposits," said Dr. Keith Barron, Aurania's Chairman and CEO. "An example of a linked porphyry-epithermal system is the Far Southeast - Lepanto - Victoria system in the Philippines: Far Southeast is a porphyry that forms the core of the system and contained a resource of 27 million ounces ("Moz") of gold with by-product copper. Lepanto is an epithermal deposit from which a further 3.6Moz of gold was mined right on the shoulder of the porphyry, while the Victoria Veins on the other side of the porphyry, contained a further 2.5Moz of gold. This is the kind of system we are looking for."
Tinchi Target
Gold occurs in streams draining an area approximately 3km long that is flanked by streams with elevated levels of pathfinder elements such as tellurium and arsenic at higher elevations from an area a further 2km long (Figure 1). Tinchi lies on the north-northwest-trending fault zone that bounds the Kirus copper target, from which grab samples of rock returned grades of between 4.3% and 5.4% copper and 48 to 79 grams per tonne ("g/t") of silver. The high-grade copper is in secondary minerals malachite, chrysocolla, tenorite, chalcocite and cuprite, and likely represents part of a secondary copper blanket as discussed in the Company's news release issued on November 1, 2018.
Figure 1. Map of magnetic data from the Kirus and Tsenken copper porphyry centres showing the fault corridor on which the Tinchi epithermal gold target lies. Magnetic data are illustrated by colour, dark blue being the least magnetic areas and purple/pink shades being the most intensely magnetic. The map also shows the area in which gold, arsenic and tellurium have been encountered in streams in the Tinchi target. (ppb = parts per billion and ppm = parts per million).
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2477/41273_b1fa5527d408baa1_001full.jpg
Next Steps
The recognition of linked porphyry-epithermal targets represents a breakthrough in the exploration of the Project area since it dictates that precious metal exploration should focus on the structural corridors in which porphyry systems, conspicuous in the regional geophysics, were emplaced. This observation helps to focus the regional exploration work, which has now covered 35% of the Company's large, 2,080 square km project area.
Additional stream sediment sampling will be undertaken to refine the area of enrichment of pathfinder elements and will be followed by ridge and spur soil sampling to better-define the location and shape of the target at Tinchi. Ridge and spur soil sampling and detailed geological work is underway at the Company's Yawi and Kirus target to prepare them for scout drilling.
Status of Permits for Scout Drilling
The Company is awaiting the final permit for scout drilling of the epithermal gold-silver target at Crunchy Hill. A drill company has been selected for the scout drilling in the Project area.
Update on Exploration Conference Call
Aurania will be hosting a webcasted conference call on Monday, December 3rd, 2018 at 11:00am ET to provide an update on exploration:
Webcast URL: http://services.choruscall.ca/links/aurania20181203.html
When prompted, webcast participants enter: First Name, Last Name, Company, Email Address.
PARTICIPANT TELEPHONE NUMBERS
Canada/USA Toll Free: 1-800-319-4610
Toronto Toll: +1-416-915-3239
UK Toll Free: 0808-101-2791
Callers should dial in 5 - 10 min prior to the scheduled start time and ask to join Aurania's conference call.
Sample Analysis & Quality Assurance / Quality Control ("QAQC")
The samples were prepared for analysis at ALS Global's ("ALS") lab in Quito, Ecuador. The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres ("mm")), from which a one-kilogram sub-sample was taken. The sub-sample was crushed to a grain size of 0.075mm and a 200 gram ("g") split was set aside for analysis.
Stream sediment samples were wet-sieved through a 20 mesh (0.84mm) screen in the field and placed in cloth bags so that excess water could drain. The samples were transported from the field to Aurania's field office in Macas, Ecuador and batched for delivery to ALS's preparation lab in Quito for drying and screening at 80 mesh (0.18mm sieve aperture). 250g of the -80 mesh silt was pulverized to 85% passing 0.075mm, and was packaged by ALS for analysis.
Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches.
ALS's preparation lab in Quito sent the prepared samples to its analytical facility in Lima, Peru for analysis by the following methods:
- Stream sediment: a 0.5g split of the -80 mesh fraction of the stream silt underwent digestion with aqua regia and the liquid was analyzed for 48 elements by ICP-MS; and
- Rock: approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS. For the over-limit samples, those that had a copper grade of greater than 1%, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.
Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.
ALS reported that the analyses had passed its internal QAQC tests. In addition, Aurania's analysis of results from its QAQC samples showed the batches reported on above, lie within acceptable limits.
Qualified Person
The technical information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
Option Grant
The Company granted a total of 1,260 stock options to a consultant on November 26, 2018. The stock options have an exercise price of C$3.00 and expire on May 26, 2020.
About Aurania
Aurania is a junior mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities - Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.
For further information, please contact:
Carolyn Muir
Manager - Investor Services
Aurania Resources Ltd.
(416) 367-3200
carolyn.muir@aurania.com
Dr. Richard Spencer
President
Aurania Resources Ltd.
(416) 367-3200
richard.spencer@aurania.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania's future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Aurania's objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation's portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in Aurania's public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.