Aurania Resources eyeing potential multiple discoveries at Lost Cities-Cutucu project in Ecuador

Flagship asset is the Lost Cities-Cutucu project in the eastern foothills of the Andes in Ecuador Proven management team that discovered much of the gold and copper in the adjacent Cordillera del Condor 'Outperform' rating from Noble Capital Markets What Aurania Resources does: Aurania Resources Inc (CVE:ARU) (OTCQB:AUIAF) is a Toronto-based junior explorer, focused on precious metals and copper, whose flagship asset is the Lost Cities-Cutucu project in the eastern foothills of the Andes mountain range in southeastern Ecuador. The company’s origin story reads akin to something of a swashbuckling novel. Aurania’s entry into Ecuador was driven by colonial Spanish documents describing the “lost cities” of Logroño de los Caballeros and Sevilla de Oro – gold mines that operated between about 1562 and 1600. Today, Aurania’s management team believe that these “lost cities” are located within the firm’s large concession area. Far from being a treasure hunter, the company is led by a team of respected geologists with a track record of world-class discoveries under their belts. CEO Keith Barron co-founded gold explorer Aurelian Resources, which discovered the Fruta del Norte gold deposit in 2006 and is currently being developed by Lundin Gold. The Lost Cities-Cutucu project lies along-trend of a mineral belt that contains 26 million ounces of gold and almost 40 billion pounds of copper in the Cordillera del Condor region of the country. Aurania’s aeromagnetic data indicates a similar granitic batholith beneath the central part of the project area which, if proven, may have provided a similar source of porphyry, epithermal and skarn mineralization. How is it doing: Aurania has been very active so far in 2021. Most recently, on June 15, Aurania reported that drilling has intersected sediment-hosted copper mineralization at Tsenken N1. As a result, the company said drilling will continue at the Tsenken N1 target and the second rig is being moved to the Tiria-Shimpia target area. The firm said it thinks Tiria-Shimpia forms part of the same mineralized system as the sediment-hosted copper at Tsenken – and if it is correct, it will have a 45-kilometre-long mineralized system on its hands. Prior to that news, in May 2021, it reported that the follow-up of a high-grade boulder found in a stream has led to the discovery of silver-zinc mineralization in an outcrop over 2.7 kilometres in the Tiria-Shimpia target area. The company said that follow-up exploration, and channel sampling of the mineralized layers, where they are exposed at surface, is turning up “key information” on the distribution of grade on surface within the 15km trend along which, silver-zinc is located at Tiria-Shimpia. According to Aurania, the trend was recently extended to 22 kilometres after the discovery of a 7 kilometres long mineralized zone at Shimpia North. Earlier exploration extended Tiria-Shimpia to 22 km in length from 15 kilometres with the discovery of Shimpia North. Sampling during the first exploration in this area at the Lost Cities - Cutucu project had uncovered elevated metal values in streams draining a ridge that is 7 kilometres long. Results included 40 grams per tonne (g/t) silver in an extensively weathered gossan outcrop, said the company. Another sample from a stream returned 19 g/t silver, 6.5% lead and 1.1% zinc.  Aurania said it has begun selecting drill sites at the Tiria-Shimpia target area and expects to begin drilling this quarter. Meanwhile, earlier in May, Aurania announced it had confirmed the presence of significant amounts of high-tech metals in samples taken from Tiria-Shimpia. Assays from the laboratory indicated the presence of gallium and indium, which are used in products like smartphones and solar cells. Sampling at Tiria-Shimpia produced maximum values of 163 parts per million (ppm) for gallium and 39 ppm for indium. The firm said that it has not yet performed any metallurgical testing to see if the metals are economically recoverable. Also in May, the company reported on a new epithermal target called Kuripan in the Lost Cities-Cutucu Project.  The company said gold has been panned from streams that drain the target area with silica veinlets that have typical epithermal characteristics and occur in volcanic tuff.  It added that results from stream sediment sampling show that, in addition to gold and silver, the area is enriched in pathfinder elements such as naturally occurring arsenic and antimony. And on April 23, Aurania reported that the first drill hole at the Tsenken N1 target at the Lost Cities-Cutucu Project had intersected sediment-hosted copper. Inflection points: More exploration and drill results Development of joint ventures over parts of the flagship asset Identify specific targets at Kirus for scout drilling What the broker says: In a note published on June 16, analysts at Noble Capital reiterated an 'Outperform' rating on Aurania Resources following recent drilling updates. “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,” analysts wrote. “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 system.” Noble has a $3.75 price target on the stock. What the boss says: Commenting on more positive results from Tiria-Shimpia drilling, CEO Keith Barron told investors:  "We believe that Tiria-Shimpia forms part of the same mineralized system as the sediment-hosted copper at Tsenken, and if we are correct, we have an enormous mineralized system on our hands - one that extends over some 45 kilometres.” He added: “The remarkable opportunity to explore this entire system is afforded to us because we have a large concession block. With one drill rig continuing the drilling at Tsenken N1 and the second moving from Kuri-Yawi to Tiria-Shimpia, we will be drilling at both ends of this extensive mineralized system. We have the option of returning to Kuri-Yawi when we have incorporated all the new data to advance our knowledge of the epithermal target there.” Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas