In a May 24 research note, Noble Capital Markets analyst Mark Reichman reported that Aurania Resources Ltd. (ARU:TSX.V) is "making progress" with its exploration program at its Lost Cities–Cutucu project in Ecuador and described recently finished work.
"Aurania's exploration program is providing an abundance of drill targets for a variety of metals and the potential to make multiple discoveries in its large concession package," Reichman wrote. "The drill program is progressing on schedule."
At the Tsenken N1 copper-silver target, the Canadian explorer completed two holes, Reichman noted. One represented 722 meters (722m) of drilling and the other, 433m. Now, it is drilling a third hole. Later, Aurania will move the drill rig, one of two in use at the property, to Tsenken West and then to Tiria-Shimpia.
As for the Kuri-Yawi 1 epithermal gold-porphyry copper target, relayed Reichman, the company drilled one hole for 1,212m and is currently drilling a second. After work there is done, Aurania will move this second rig to Kuri-Yawi 2.
Along with Tsenken West and Tiria-Shimpia, other planned drill targets include Tsenken N4 (copper-gold), Tsenken B (copper-silver) and Kuri-Yawi 3 (copper-gold).
"Management has mentioned the order could change along with the potential for a third rig to be deployed at Tiria-Shimpia," Reichman wrote.
Regarding the Tiria-Shimpia target, the analyst pointed out, "exploration and channel sampling are yielding information about the distribution of grade on surface" in the silver-zinc mineralization trend there. Silver grades, in a 500m segment in a 2.7 km mineralized zone, were as high as 73 grams per ton, zinc grades as high as 49%.
The mineralization trend at Tiria-Shimpia now spans 22 km with Aurania's recent discovery of a 7 km long mineralized zone at Shimpia North.
"The latest discovery at Tiria-Shimpia is encouraging because while the 22 km trend is mineralized, the company appears to be narrowing in on the highest-grade sections for drilling," Reichman commented.
Noble has an Outperform rating and a $3.75 per share target price on Aurania Resources, the stock of which is trading today at about $2.29 per share.
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