Auryn Resources Inc. (TSX:AUG) (NYSE
American:AUG) (“Auryn” or the “Company”) is pleased to announce
that after a short delay, the Company has received the final notice
to commence drilling operations from the Peruvian Ministry of
Energy and Mines on the Huilacollo oxide gold epithermal project
located in Southern Peru. The drill is currently being
mobilized and the program is anticipated to start on or around
November 30th.
The initial core drill program will include
5,000 meters across the Huilacollo project that will be conducted
in 2 phases where the first phase will focus on the expansion
around the mineralized areas around the top of Andamarca hill where
minimal historical drilling has taken place (Figure 1a). The second
phase of drilling will continue in 2018 and will focus on the
Tacora and Huilacollo II licenses.
The Tacora target area is interpreted to be a
part of a potential feeder system to the known mineralization on
the Andamarca hill. It is defined by a 4 kilometer long northeast
trending graben that contains abundant breccia bodies that
represent high priority oxide gold targets. Twelve historical grab
samples from across an 80 meter wide breccia body, detailed in the
table below, demonstrate the excellent potential of these
targets.
Tacora Historical Grab Samples |
4.98 Au g/t |
0.65 Au g/t |
3.49 Au g/t |
0.65 Au g/t |
0.83 Au g/t |
0.59 Au g/t |
0.76 Au g/t |
0.52 Au g/t |
0.72 Au g/t |
0.48 Au g/t |
0.70 Au g/t |
0.30 Au g/t |
The targets on the Huilacollo II license are
defined by the recently discovered 1.8 kilometers of gold and
silver anomalies (Figures 1a & 1b) that are interpreted to
represent an intermediate sulphidation system. No drilling
has been conducted over these anomalies provide Auryn with
large-scale targets that have the potential to deliver a
significant discovery.
The Huilacollo project is located approximately
15 kilometers northwest of the producing Pucamarca mine that
currently has a 1.35 million ounce oxide gold resource1 and is
being mined at 0.5g/t Au with a cash cost of US$313 per
ounce. Infrastructure at the Huilacollo project is
exceptional with power, water, and well-maintained national roads
within 1.5 kilometers of the project
boundaries.
Shawn Wallace, President and CEO commented, “We
are very excited to begin drilling the first of our four Peruvian
projects. The Huilacollo project has exceptional access to
infrastructure and is viewed by Auryn management as an opportunity
to discover highly valued oxide gold ounces.“
Mr. Wallace further stated, “The Huilacollo
drill program will be the start of a continued exploration drilling
effort in Peru which will continue across the Sombrero, Baños del
Indio and Curibaya projects and give Auryn Shareholders the
opportunity for significant discoveries year round.”
Auryn’s technical team believes that the gold
bearing system at Huilacollo is related to the substantial Baños
del Indio alteration system along a north-south trending fault that
link the two epithermal systems (Figure 2). The geological data
being gathered at Huilacollo will be useful when applied to the
Baños del Indio project.
Other Ongoing efforts in
Peru
Sombrero
Auryn is in the final process of completing the
first of two community agreements with the local communities at
Sombrero, which will allow access to the southern half of the
project. Previous trenching and surface work in this area
have yielded several multi-gram gold grab samples and multi-percent
copper samples (see table 1 & table 2) in addition to a trench
of 53 meters at 1.75 g/t including 14m of 5.75g/t Au (See Auryn’s
press release dated February 24, 2017). Access to the
northern half of the project is currently being pursued.
In addition, the Company has expanded the
Sombrero position from the original 3,800 hectares to over 15,000
hectares in response to reconnaissance activities encountering Au/
Cu mineralization in several areas.
Baños del Indio
Negotiations with the host communities of the
Baños del Indio project are ongoing and agreements are expected to
be reached in 2018.
Pending News:
- Homestake Ridge, BC – drill results
- Gibson MacQuoid, NU – surface results
- Committee Bay, NU - balance of drill results, additional Aiviq
Till Results and March 2018 plans
Michael Henrichsen, P.Geo, COO of Auryn, is the
Qualified Person who assumes responsibility for the technical
disclosures in this press release.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURYN
RESOURCES INC.
Shawn Wallace President and CEO
For further information on Auryn Resources Inc.,
please contact Jay Adelaar, Vice-President of Investor Relations at
(778) 729-0600 or info@aurynresources.com
About Auryn
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 track
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.
Historic Grabs (Tacora,
Peru):
The historic grab and trench samples were
collected by previous owners, Bear Creek Mining, Anglo American,
and Falcon Exploraciones, from 2004 through 2016. Grab samples are
a non-representative sampling technique and may not be
representative of the mineralization present on the project.
Further, Auryn has not conducted any due diligence on whether
appropriate QA/QC protocols were followed in the collection of
these samples, nor can it confirm their accuracy or
repeatability.
Trenches 2016 (Sombrero,
Peru):
Analytical samples were taken from each 1 meter
interval of trench floor resulting in approximately 2-4kg of rock
chips material per sample. Collected samples were sent to ALS Lab
in Lima, Peru for preparation and analysis. All samples are assayed
using 50g nominal weight fire assay with atomic absorption finish
(Au-AA26) and multi-element aqua regia digest ICP-AES/ICP-MS method
(ME-MS41). QA/QC programs for 2016 trench grab samples using
internal standard and blank samples; field and lab duplicates
indicate good overall accuracy and precision.
Intervals were calculated using a minimum of a
0.1 g/t Au cut-off at beginning and end of the interval and
allowing for no more than seven consecutive samples (seven meters)
of less than 0.1 g/t Au.
Forward Looking Information
This release includes certain statements that
may be deemed “forward-looking statements”. Forward-looking
information is information that includes implied future performance
and/or forecast information including information relating to, or
associated with the acquisition and title to mineral concessions.
These statements involve known and unknown risks, uncertainties and
other factors which may cause actual results, performance or
achievements of the Company to be materially different (either
positively or negatively) from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Readers should refer to the risks discussed in the
Company’s Annual Information Form and MD&A for the year ended
December 31, 2016 and subsequent continuous disclosure filings with
the Canadian Securities Administrators available
at www.sedar.com and the Company’s registration statement
on Form 40-F filed with the United States Securities and Exchange
Commission and available at www.sec.gov.
Disclaimer The Toronto Stock Exchange nor the
Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
____________________
1 Minsur S.A. – Corporate Presentation – March 2017 -
http://www.minsur.com/wp-content/uploads/pdf/Presentacion%20Corporativa/Corporate_Presentation_Minsur_4Q_2016.pdf
Figures accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/aebecd0d-a376-47da-8476-30d8b3b854ea
http://www.globenewswire.com/NewsRoom/AttachmentNg/e4e87513-6149-4a79-9107-301704b24a28
http://www.globenewswire.com/NewsRoom/AttachmentNg/68be5bde-d4d3-42f1-87cb-fb3bb25b8eb4
Tables accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/4393bd9a-92d3-45a1-b3a3-178a21604bc5
http://www.globenewswire.com/NewsRoom/AttachmentNg/b91a27cf-61d3-47ed-a87a-49edab3660fe