Another Drill Hole in Priority Target Delivers High Grades at Ecuador Project

Another Drill Hole in Priority Target Delivers High Grades at Ecuador Project

Aurania Resources’ hole SH-003, drilled in the Tiria-Shimpia target at Los Cities–Cutucu, returned silver grades up to 10.5 grams per tonne and zinc grades up to 2.5%.

In a Sept. 28 research note, Noble Capital Markets analyst Mark Reichman reported that new drill results show Aurania Resources Ltd. (ARU:TSX.V; AUIAF:OTCQB) is having success in locating the higher grade parts of the mineralized system at its Lost Cities–Cutucu project. The company is exploring four priority targets on this property in Ecuador: Tiria-Shimpia, Tsenken N1, Tatasham, and Latorre C.

Results are in for hole SH-003, and they are high-grade. Aurania drilled this hole in the Tiria-Shimpia silver-zinc target about 2 kilometers to the north of where it placed holes SH-001 and SH-002.

Intercepts from hole SH-003 include 3.5 grams per tonne (3.5 g/t) of silver and 0.6% zinc over 29 meters (29m), including 10.5 g/t of silver and 2.5% zinc over 5m. The hole intersected the top of a brecciated limestone layer at 35m downhole.

To date, Aurania has drilled three holes over 1,018m at Tiria-Shimpia.

As for Tsenken N1, the minerals explorer just completed hole TSN1-007 and began drilling TSN1-008 there.

Regarding the company’s overall drill campaign at Lost Cities–Cutucu, Reichman noted, “In the near term, we think Aurania will continue to operate two drill rigs and maintain some flexibility in terms of the drilling sequence.”

To fund its continuing exploration and drill work, Aurania is pursuing a nonbrokered private placement for gross proceeds of up to CA$5 million, Reichman indicated. In this financing, which may consist of more than one tranche, up to 2,083,334 units are being sold at CA$2.40 apiece.

Each unit consists of one common share and one half-warrant. In the 24 months after the financing closes, each whole warrant can be converted into one common share for CA$3.

“The shares have traded well above CA$3 per unit, and the warrants may be viewed as a call on successful outcomes resulting from Aurania’s exploration and drilling program,” Reichman wrote.

Noble has an Outperform rating and a US$3.50 per share target price on Aurania, the stock of which is trading now at about US$1.78 per share.

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Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Aurania Resources Ltd. Click here for important disclosures about sponsor fees.  An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Aurania Resources Ltd. Please click here for more information.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aurania Resources Ltd., a company mentioned in this article.

Disclosures from Noble Capital Markets, Aurania Resources Ltd., Sept. 28, 2021

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