In an May 3 research note, Noble Capital Markets Inc. Senior Research Analyst Mark Reichman stated that junior mining exploration company "Aurania Resources Ltd.'s (ARU:TSX.V; AUIAF:OTCQB; 20Q:FSE) 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."
The analyst noted that drill work at both the Kuri-Yawi and Tsenken N1 targets at its Lost Cities project are continuing as scheduled and that the Shimpia North discovery is a positive development with strong potential.
Noble Capital Markets mentioned that Aurania Resources' management advised in an update less than a week ago that it is operating two drills at its Lost Cities project that are focused on the Kuri-Yawi gold-copper target and the Tsenken N1 copper-silver target. The company noted that it has located two new target areas including a highly prospective new silver-zinc area named Shimpia North from its stream sediment sampling and regional exploration efforts.
The analyst explained that the Shimpia North discovery is an extension of the high-grade Ag-Zn-Pb ore at Tiria-Shimpia and therefore serves to expand the total length of Tiria-Shimpia by an additional 7 km to 22 km. Exploratory results from six grab samples collected at Shimpia North returned grades as high as 40 g/t Ag in one particular sample.
The analyst stated that Aurania will continue deploying its first drill at Tsenken N1 and will then relocate it to work at Tsenken West and after that it will move to commence drilling at Tiria-Shimpia. The second drill will continue work at Kuri-Yawi and then be redeployed to the Kuri-Yawi 2 target.
Senior Analyst Reichman added that Aurania is now in the process of selecting specific sites for drilling at the Tiria-Shimpia target area and plans to commence drilling during this quarter. Reichman added that Aurania's management team may also be considering adding a third drill which could possibly be directed to drill at Tiria-Shimpia.
Noble Capital Markets listed that it currently has an "Outperform" rating for Aurania Resources with a target price of US$3.75/share. The company's shares trade under the ticker symbol AUIAF on the US-OTCQB market and closed for trading at US$2.45/share on May 3, 2021.
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