Aurion Resources Ltd.'s (AU:TSX.V) latest drill results from its joint venture project with operator B2Gold in Finland showed new areas of gold mineralization, reported PI Financial analyst Phil Ker in an Aug. 21 research note.
"Drilling continues to demonstrate the unexplored nature across the property while positive success to date has led the JV to approve an increase to the 2023 exploration program to potentially expand on known zones of mineralization," Ker wrote.
Attractive return
Following announcement of these positive results, PI reiterated its Buy rating and CA$1.10 per share target price on Aurion. The Canadian explorer's current share price, in comparison, is CA$0.55.
The difference between these two prices implies a significant potential return for investors in Aurion, of 100%.
"We continue to see value being added through the drill bit as Aurion and their joint venture partnership continues their exploration efforts in Finland," Ker commented.
New discovery
The new discovery of gold mineralization at the Aurania-B2Gold Joint Venture was in the Vuoma area, 2.7 kilometers south of Helmi. With it, the joint venture partners "continue to demonstrate the potential across the property," wrote Ker.
The highlight result from Vuoma was 1.33 grams per ton (1.33 g/t) gold over 8.3 meters (8.3m), from hole VUO23007.
"The new discovery at Vuoma has been identified being strongly deformed and altered host rock within a volcanic and sedimentary contact boundary which is similar throughout the district," noted Ker.
As for the Helmi discovery, a new standout intercept hit there was 1.21 g/t gold over 9.2m, from hole IKK23045.
Outside the test pit
The drill bit also intersected new zones of gold mineralization at Kutuvuoma, outside the current test pit area, Ker reported. For instance, intercepts from there included 1.43 g/t gold over 10.45m, from hole KU23011.
Drill campaign update
So far this year, about 8,200m were drilled at the joint venture project, testing targets identified via geophysical sampling and surveys.
Another 4,500m of drilling are planned for H2/23.
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