In a December 9 research note, Senior Natural Resources Research Analyst Mark Reichman of Noble Capital Markets Inc. stated that junior precious and critical metals explorer Aurania Resources Ltd. (ARU:TSX.V; AUIAF:OTCQB) may be on a steady course to a new discovery at its Lost Cities-Cutucu Project in southeastern Ecuador.
Reichman noted that some follow-up work drill work may be necessary at the company's Tiria-Shimpia silver-zinc site. It was here at drill Hole SH-004, where starting from a depth of 52.0m, the company encountered a 2m high-grade intercept of 12.4% Zn, 5.4 g/t Ag, 61 g/t Ga and 9 g/t In.
The analyst commented that Aurania Resources' management team may consider drilling deeper beyond the layers of weathered sulphide mineralization with the goal of finding higher grade zinc-silver shoots at depth as the highly prospective interval it discovered is surrounded by an 8.5-meter halo of 3% zinc.
The report advised that Aurania has begun drilling in Hole TSN1-009 at the Tsenken target. The firm has reached a drill depth of 350m and plans to extend that to around 500m when completed. The company's primary objective is to search for copper-silver mineralization that lies within evaporite mineral beds within sedimentary layers. Based upon their findings so far, the firm's management believes that there appears to be excellent potential for copper sulphide mineralization.
The report from Noble Capital Markets mentioned that Aurania is now preparing to move forward with exploration work at the Awacha target site starting in mid-December. The company has executed an agreement with the local indigenous communities and its initial focus will be to refine porphyry targets. The field work will begin with grid mapping and soil sampling in the areas where elevated levels of metal material has been detected.
Nobel Capital indicated that Aurania's exploration efforts are progressing well at Tiria-Shimpia and Tsenken N1. Nobel stated that positive assay results from Hole TSN1-009 would be very useful in filling in the picture at Tsenken N1. The analyst commented, "We expect greater momentum moving into 2022 as Aurania's exploration activities are affirmed with positive drill results and discoveries and progress at new targets."
Aurania Resources Ltd. is a Toronto, Ont.-based junior exploration firm that focuses on acquiring, exploring and developing precious metals and copper properties. The company's "flagship" asset is The Lost Cities-Cutucu Project in Ecuador. The project includes 42 mineral exploration concessions over an area of about 208,000 ha (~2,080 sq. km).
Noble Capital Markets Inc. advised that it is maintaining an "Outperform" rating for Aurania Resources Ltd. with a price target of US$2.35 per share. The firm's shares trade on the OTCQB Venture Market under the symbol "AUIAF" and last closed for trading at US$0.80 per share on Tuesday, December 14, 2021.
In addition, the firm's shares trade under the symbol "ARU" on the TSX Venture Exchange and "20Q" on the Frankfurt Exchange.
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