In a June 16 research note, Noble Capital Markets analyst Mark Reichman provided an update on Aurania Resources Ltd.'s (ARU:TSX.V; AUIAF:OTCQB) drilling at its Lost Cities–Cutucu project.
Reichman discussed the drilling of three targets at the Ecuador property.
Regarding the Tsenken N1 copper-silver target, Reichman relayed that drilling encountered sediment-hosted copper mineralization that increases in intensity to the east. The copper-silver in the Tsenken N1 area has been shown to be in the same fault system as the sediment-hosted zinc-silver mineralization at the Tiria-Shimpia target.
Thus, Reichman highlighted, Aurania hypothesizes that Tsenken N1 and Tiria-Shimpia are part of the same mineralized system, and the copper at Tsenken N1 links to the zinc at Tiria-Shimpia. To test this, the explorer is drilling hole 4 about 700 meters northwest of hole 3, expectedly in the copper zone.
"If drilling at Tsenken N1 and Tiria-Shimpia affirm management's exploration concept, it would represent a significant step forward in the company's exploration program given the size of the system," Reichman wrote.
To date, Aurania drilled 1,564 meters at Tsenken N1, placing all of the completed holes along the border of the copper zone.
As for Tiria-Shimpia, drilling is slated to start at that target by the end of June once the rig is moved there from Yuri-Kawi, Reichman noted. The program objective is to drill test the intersection of the zinc and silver mineralized layers previously identified in outcrop. With the current drill campaign, both ends of the mineralized system will get drilled.
In terms of the Yuri-Kawi epithermal gold-porphyry copper target, Reichman relayed, Aurania placed two drill holes there, YW-008 and YW-009, over 1,948m.
"The drilling provided evidence of proximity to the core of an epithermal system," Reichman wrote. "Results from hole 9 seem to indicate that it is closer to the core of the system than hole 8." Hole 8 did not intersect a porphyry target. Therefore, the epithermal target is thought to be east of hole 9.
The company will use this new information to better refine the epithermal and porphyry targets for potentially more drilling at Yuri-Kawi.
Reichman concluded that "Aurania's exploration program is providing an abundance of drilling targets for a variety of metals and the potential to make multiple discoveries in its large concession package."
Noble has an Outperform rating and a $3.75 per share target price on Aurania, the current share price of which is about $2.16.
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