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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IMPORTANT DISCLOSURES for Noble Capital Markets, Inc., Aurania Resources Ltd., Dec. 9, 2021
Noble Capital Markets, Inc. ("Noble") seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst's judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
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The Company in this report is a participant in the Company Sponsored Research Program ("CSRP"); Noble receives compensation from the Company for such participation. No part of the CSRP compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed by the analyst in this research report.
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ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE
CONTINUING COVERAGE: Unless otherwise noted through the dropping of coverage or change in analyst, Mark Reichman, Senior Natural Resources Analyst, the analyst who wrote this research report will provide continuing coverage on this company through the publishing of research available through Noble Capital Market's distribution lists, website, third party distribution partners, and through Noble’s affiliated website, channelchek.com.
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