Mr. Ivan Bebek reports
AURYN ACQUIRES GOOD LUCKY PROSPECT AND DISCOVERS NEW PROSPECTS AT SOMBRERO
Auryn Resources Inc. has acquired the rights to the Mollecruz concessions, which are key claims in the northern area of the Sombrero project, located in southern Peru. The Mollecruz concessions include the Good Lucky prospect, which is located five kilometres from the Sombrero project, where Auryn recently trenched 99 metres of 0.46 per cent copper equivalent. Samples taken within the Mollecruz concessions yielded results up to 5.12 grams per tonne gold and 4.29 per cent copper.
In addition, two new prospects, Totora and Uchuy, have also been discovered through sampling. At Totora, Auryn's geologists have sampled gold values up to 5.07 g/t and copper values up to 3.14 per cent. At Uchuy, strong arsenic and antimony values have been sampled which indicate the potential for proximal base and precious metal mineralization.
A message from Auryn's executive chairman and director
Ivan Bebek stated, "The Sombrero project continues to impress us both with the potential size of the structures and grades of mineralization we continue to identify."
The Good Lucky prospect
The Good Lucky prospect is located within the Mollecruz concessions, which are approximately 1,000 hectares and represent another cluster of mineralizing intrusive bodies in the Sombrero district that are characterized by copper-gold skarn mineralization.
The principal skarn body at the Good Lucky prospect demonstrates high-grade copper-gold mineralization sampled over a 600-metre length and over 250 vertical metres.Rock samples graded up to 5.12 g/t gold and 4.29 per cent copper in sulphide mineralization.
SOMBRERO -- GOOD LUCKY ROCK 2018 HIGHLIGHTSGold CopperSample IDAu (g/t) Sample ID Cu (%) Sample ID Cu (%)W645039 5.12W6450354.29W6451511.06W645082 2.25W6450814.27W6451151.04W645068 1.16W6450973.05W6450801.04W645090 1.08W645087 2.9W6450470.94W645077 0.71W6450902.71W6450880.90W645071 0.68W6450412.64W6450740.90W645069 0.64W6450771.90W6451120.87W645038 0.59W6450491.78W6451180.86W645075 0.42W6450681.75W6450750.79W645151 0.39W6450711.71W6451100.75W645081 0.38W6450931.68W6450820.62W645040 0.31W6450661.51W6451050.59W645074 0.30W6450861.19W6450670.57W6450991.13All samples disclosed in this table were grab samples and were selectively taken.The results are not necessarily representative of the mineralization hosted on the property.
Importantly, the skarn mineralization encountered at Good Lucky occurs in the Gramadal limestone sequence situated below the Ferrobamba limestone sequence. The Ferrobamba sequence hosts mineralization at the Sombrero project as well as the Tintaya and Las Bambas deposits.This is significant because it demonstrates that there are two mineralized limestone sequences within the district, increasing the likelihood of a potential discovery. The outcropping mineralization is interpreted to extend under thin volcanic cover to the north. A magnetic survey will be conducted to determine the extent of the system.
Terms of the acquisition
Under the terms of an option agreement dated June 22, 2018, the company may acquire a 100-per-cent interest in the Mollecruz concessions by completing $3-million (U.S.) in work expenditures and by making payments totalling $1.6-million (U.S.) to the underlying owner over a five-year period. At signing, Auryn paid $50,000 (U.S.) and upon exercise of the option, the underlying owner will retain 0.5-per-cent net smelter return royalty with an advance annual royalty payment of $50,000 (U.S.).
Totora and Uchuy prospects
Auryn has followed up on results from its regional 2017 stream sediment survey in the concessions to the west of Good Lucky and has identified previously unknown copper-gold porphyry style of mineralization (the Totora prospect) and an area of abundant skarn mineralization (the Uchuy prospect). These prospects have been discovered in an area with extensive postmineralization volcanic cover. At Totora, a 50-metre-wide porphyritic monzonite dike within a larger diorite body has been identified.The dike itself is completely altered by porphyry-style silica and clay, and has extensive stockwork veining over its entire width. Reconnaissance sampling from Totora has yielded gold and copper mineralization over a 200-metre length with rock samples grading up to 4.92 grams per tonne gold and 3.14 per cent copper along the margins of the monzonite dike.Additional rock samples have been collected across the stockwork vein system with results expected in the coming weeks.
Auryn's technical team views the discovery of the Totora prospect as highly significant because it demonstrates the potential for copper-gold porphyry-style mineralization within the Sombrero district.A summary of the reconnaissance rock samples from Totora is presented in the attached table.
SOMBRERO -- TOTORA ROCK 2018 HIGHLIGHTS Gold CopperSample ID Au (g/t)Sample ID Au (g/t)Sample ID Cu (%)W6451315.07 W6451600.37 W6451643.14W6451641.08 W6451620.33 W6451621.28W6451320.89 W6451610.33 W6451591.17W6451350.76 W6451590.23 W6451361.16W6451360.55 W6451380.21 W6451631.12W6451630.40 W6451601.03All samples disclosed in this table were grab samples and were selectively taken.The results are not necessarily representative of the mineralization hosted on the property.
At Uchuy, mineralization is characterized by jasperoid (silica) structures and skarn bodies associated with Labra formation sandstones and the Gramadal limestone sequence, respectively.The jasperoids and the skarn bodies occur over a one-kilometre length in a north-south structural corridor. These bodies are highly elevated in both arsenic and antimony demonstrating that they have the potential to be in close proximity to a precious and base metal system at depth.The majority of the samples ran greater than 200 grams per tonne arsenic with multiple samples greater that 1 per cent.Many samples also ran between 50 and 570 grams per tonne antimony.A single sample from the sampling program collected off skarn body graded 0.5 g/t gold, 285 g/t silver and 1.38 per cent copper.
Auryn's technical team views the observed skarn and jasperoid bodies at Uchuy to be important because they are a part of a larger skarn-porphyry intrusive complex that extends from Good Lucky through to Totora and Uchuy over a six-kilometre length that is largely obscured by volcanic cover.
A message from Auryn's chief operating officer and chief geologist
Michael Henrichsen stated: "Our sampling and mapping over the northern half of the Sombrero project is identifying high-grade gold and copper mineralization over several kilometres.We view the new prospects of Good Lucky, Totora and Uchuy as the next mineralized cluster of intrusive bodies within the greater Sombrero district. The technical team is very excited about the potential of the district and the effectiveness of our regional stream sediment survey in identifying mineralized bodies."
Mr. Henrichsen (chief operating officer), PGeo, is the qualified person who assumes responsibility for the technical contents of this press release.
About Auryn Resources Inc.
Auryn Resources is a technically driven junior mining exploration company focused on delivering shareholder value through project acquisition and development. The company's management team is highly experienced with an impressive record of success and has assembled an extensive technical team as well as a premier gold exploration portfolio. Auryn is focused on scalable high-grade gold deposits in established mining jurisdictions, which include the Committee Bay and Gibson MacQuoid gold projects located in Nunavut, the Homestake Ridge gold project in British Columbia, and a portfolio of gold projects in southern Peru, through Corisur Peru SAC.
Grabs 2018 sampling (Sombrero, Peru)
All samples were approximately two kilograms of rock chips material per sample and were collected for analysis and sent to ALS Lab in Lima, Peru, for preparation and analysis. All samples are assayed using 30-gram nominal weight fire assay with inductively coupled plasma finish (Au-ICP21) and multielement four acid digest ICP-atomic emission spectroscopy/ICP-mass spectrometry method (ME-MS61). Where ICP21 results were greater thanthree g/t Au, the assay was repeated with 30 g nominal weight fire assay with gravimetric finish (Au-GRA21). Where MS61 results were greater or near 10,000 parts per million copper, zinc or lead, the assay was repeated with ore grade four acid digest method (OG62). Quality assurance/quality control programs for 2018 rock grab samples using internal standard and blank samples; field and lab duplicates indicate good overall accuracy and precision. Grab samples were selectively taken and are not representative of the average mineralization in the area.
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