Toronto, Ontario, April 6, 2018 – Aurania Resources Ltd. (TSXV: ARU) (“Aurania” or the “Company” - https://www.youtube.com/watch?v=loQK2aflD3Q&t=3s) is pleased to report that the source of the “vuggy silica” blocks – a known indicator of epithermal gold-silver systems - has been found in the Latorre B area in the Lost Cities – Cutucu Project (the “Project”) in southeastern Ecuador. The target has been renamed “Crunchy Hill”. The Company is also pleased to report that further stream sediment sampling has approximately doubled the size of the Latorre A target.
To view the discovery of vuggy silica at Crunchy Hill as recorded on a field camera, click on the link below:
CEO and Chairman, Dr. Keith Barron commented, “In our last press release on the Latorre area (see press release dated February 28, 2018), we mentioned that blocks of vuggy silica had been found in the Latorre B target area; we have now found the source of this key marker of epithermal systems. The target was initially identified by only two stream sediment samples enriched in naturally-occurring arsenic, antimony, mercury, silver, selenium and thallium – which are all pathfinder elements for epithermal gold-silver systems. Diligent follow-up of this small area of interest has led to the discovery of a 400-metre long ridge of vuggy silica – a sponge-textured rock composed of cavities within a web of residual silica - that is very commonly associated with epithermal systems. Assays from rock-chip samples from outcrop at Crunchy Hill are pending and soil sampling for geochemical analysis is currently underway from a grid pattern over the ridge. It is highly probable that Crunchy Hill will be our first drill target in the Lost Cities – Cutucu Project.”
Crunchy Hill Target
Crunchy Hill, one of five targets within the larger Latorre area, was so-named because of the characteristic sound made underfoot as silica grains grind against each other in the clay-rich soil. Intense vuggy silica occurs with banded chalcedonic silica veinlets along a northeast-trending ridgeline in a sequence of black shale, limestone and siltstone. Heavy and porous iron gossan blocks occur with the vuggy silica, indicating that the system originally contained abundant sulphide minerals that have been weathered to iron oxide.
Rock-chip samples of blocks of vuggy silica, gossan and hematite (iron oxide) breccia in the streams draining Crunchy Hill have returned assays of up to 10 grams per tonne (“g/t”) of silver, along with high levels of pathfinder elements such as naturally-occurring arsenic, antimony, mercury and thallium – volatile elements. One rock-chip sample that returned 3g/t silver was extremely enriched in thallium (219g/t) and to some extent in mercury (2.2g/t). The occurrence of silver, along with volatile elements, in rock-chip samples is encouraging for gold mineralization because it tends to precipitate over a wider area (above and adjacent to) the gold-bearing core of these systems.
A second zone of vuggy silica with superimposed, banded chalcedonic silica, has been found one kilometre west of Crunchy Hill, while manganese oxide, along with adularia casts in banded chalcedonic silica veinlets, have been found in blocks in a stream approximately one kilometre north of Crunchy Hill. The manganese oxide is suspected to have been weathered from manganese carbonate, rhodochrosite. Both adularia and rhodochrosite are key indicator minerals at the Fruta del Norte (“FDN”) gold-silver deposit in Ecuador which is currently being developed by Lundin Gold.
Exploration Model at Crunchy Hill
The vuggy silica at Crunchy Hill is typical of high sulphidation epithermal systems such as Alto Chicama (Lagunas Norte Mine) in Peru, while the banded chalcedonic silica veinlets are more typical of intermediate or low sulphidation epithermal systems. The FDN gold-silver deposit that lies 100 km along trend is a classic example of an intermediate sulphidation epithermal system. The Company’s current exploration model for the Crunchy Hill target consists of a central high sulphidation epithermal system like Alto Chicama that grades outward into an intermediate sulphidation system similar to that in which the Fruta del Norte deposit occurs.
Soil sampling is currently underway over the Crunchy Hill target and initial results are expected in early May. It is anticipated that geochemistry from the soil survey will define zones that are enriched in volatile elements and these are likely to represent specific targets for scout drilling. A man-portable diamond drill rig has been reserved from a contract company for scout drilling in the latter half of the year.
Latorre A Target
Additional stream sediment sampling in the Latorre A target area has detected elevated concentrations of naturally-occurring arsenic and antimony over an area approximately twice the size of the original target area (Fig. 1) reported in the Company’s press release dated February 28, 2018. The target now covers an area of approximately 6 square kilometres.
The next step in the Latorre A target area is more detailed geological review followed by soil sampling at regular intervals along the crests of ridges – so-called ridge and spur soil sampling. This cost-effective approach should define specific targets within the large area of anomalous arsenic and antimony. This more detailed exploration is expected to result in the definition of additional targets for scout drilling.
The technical information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc., Aurania’s VP-Exploration. 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.
Aurania is a junior exploration mining 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:
Manager – Corporate & Investor Services
Aurania Resources Ltd.
Dr. Richard Spencer
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains 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 company’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.