VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 3, 2017) -
Editors' Note: There are two images associated with this press release.
Auryn Resources Inc. (AUG)(NYSE MKT:AUG)(NYSE AMERICAN:AUG) ("Auryn" or the "Company") is pleased to announce that it has acquired the rights, through two separate transactions, to the Tacora and Andamarca properties that are contiguous to the Huilacollo gold epithermal project in the Tacna province of Southern Peru.
The Tacora and Andamarca properties add an additional 1,100 hectares to the existing land position and greatly expand the mineralized footprint (see Figure 1) of the project. Huilacollo now consists of 3,100 hectares within the highly prolific Pliocene Au/Ag epithermal belt.
Shawn Wallace, Auryn's CEO, commented, "the acquisition of the Tacora and Andamarca licenses adjacent to our Huilacollo project provides Auryn with both new exploration opportunities and room for future infrastructure requirements as we work towards drilling this fall."
Mr. Wallace further stated "taking into account the additional licenses that we have under application, Auryn will control over 27,000 hectares in this very prospective belt. We are excited about the prospectively of the district that we have assembled as we move toward our goal of significant oxide gold discoveries in Southern Peru."
The Tacora licences acquired have a known high sulphidation epithermal alteration system over an area of 1.5 kilometers by 500 meters (see Figure 1). Historical grab samples from the mineralized epithermal system demonstrate strong gold values ranging from 0.1 - 4.6 g/t Au. Auryn's technical team believes that the epithermal system on the Tacora licenses is the continuation of the same oxide gold epithermal system observed on the Huilacollo licenses. The Andamarca license provides Auryn with a strategic land position that is considered important from an infrastructure standpoint if future mining were to occur.
Tacora and Andamarca concessions were acquired in two separate transactions with private Peruvian owners. Under the terms of the Tacora acquisition agreement, the Company will pay US$200,000 on signing of the Public Deed transferring the concessions in favor of Corisur Peru SAC. The Tacora concessions are subject to a 0.5% NSR, 50% of which is buyable for US$0.5 million. Under the terms of the Andamarca acquisition agreement, the Company will pay US$450,000 on signing of the Public Deed transferring the concession in favor of Corisur Peru SAC. The Andamarca concession is subject to 1.5% NSR, 50% of which is buyable for US$2.5 million.
In addition, Auryn has under application an additional 19,000 hectares of mineral licenses within the Pliocene Au/Ag epithermal belt on alteration systems identified from satellite imagery (see Figure 2). These concessions are in the process of being granted and it is anticipated that the granting of the licenses will occur in Q4 of 2017. The expansion of land positions within the Pliocene Au/Ag epithermal belt is consistent with Auryn's strategy of developing district scale exploration projects in highly endowed areas that are we consider underexplored.
Committee Bay Update
Auryn has drilled a total of 18,600 meters of which 6,500 meters are currently in the assay lab with an additional 12,100 meters on route. Turnaround times from a drill hole being completed to results have been approximately 6 to 8 weeks due to bottlenecks in the shipping of samples from Rankin Inlet (now resolved) and a 3 to 4 week turnaround time at the laboratory. Importantly, due to increased drill production and efficient drill targeting, Auryn is anticipating that an additional 7 targets will be drill tested, taking the total number of targets to be tested to 19.
Homestake Ridge Update
Auryn initiated drilling on July 21st and has completed 1,600 meters of the proposed 15,000-meter program to date focusing on the South Reef and Slide Zone target areas. Surface work is concentrating on refining target corridors based on geological mapping, geophysical induced polarization, portable X-Ray fluorescence and shortwave infrared surveys that are currently ongoing.
Michael Henrichsen, P.Geo, COO of Auryn, is the Qualified Person who assumes responsibility for the technical disclosures in this press release.
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