In a May 24 research note, Noble Capital Markets analyst Mark Reichman reported that Aurania Resources Ltd. (ARU:TSX.V; AUIAF:OTCQB) 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 drilling targets for a variety of metals and the potential to make multiple discoveries in its large concession package," Reichman wrote. "The drilling 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 2.7km mineralized zone, were as high as 73 grams per ton, and zinc grades as high as 49%.
The mineralization trend at Tiria-Shimpia now spans 22km with Aurania's recent discovery of a 7km-long mineralized zone at Shimpia North.
"The latest discovery at Tiria-Shimpia is encouraging because while the 22-kilometer 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 US$3.75 per share target price on Aurania Resources, whose stock is trading at about US$2.28 per share.
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Disclosures for Noble Capital Markets, Aurania Resources, May 24, 2021
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Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis. Named WSJ 'Best on the Street' Analyst and Forbes/StarMine's "Best Brokerage Analyst." FINRA licenses 7, 24, 63, 87.