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Aurania Resources Ltd
Symbol ARU
Shares Issued 43,932,689
Close 2020-11-16 C$ 3.43
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Aurania Resources extends IOCG system at Lost Cities

2020-11-17 07:38 ET - News Release

Dr. Richard Spencer reports

AURANIA REPORTS EXTENSION OF IRON OXIDE COPPER-GOLD SYSTEM

The iron-oxide-copper-gold (IOCG) system identified in the Tsenken N2 target area extends to Tsenken N3, where it strengthens and the first copper mineralization has been identified in the drill core at Aurania Resources Ltd.'s Lost Cities-Cutucu project in southeastern Ecuador. Assays from holes TS001-003 are awaited to determine whether there is gold in the system, and pathfinder element concentrations should supplement observations from the core to allow us to vector toward the centre of the system.

Aurania's chairman and chief executive officer, Dr. Keith Barron, commented: "We are delighted to report that the Tsenken N2 and N3 targets form part of a single, large IOCG target that is over 20 square kilometres in extent. By analogy with other IOCG systems around the world, they are typically large and, as their name implies, they contain gold as well as copper. Our exploration elsewhere in the concession area is identifying other IOCG targets -- which is consistent with IOCGs typically being in clusters."

Dr. Barron continued: "Alteration mineral vectors indicate that the centre of the system is in the northern part of Tsenken N3 -- and hole 6 is planned to test that area. The copper-silver mineralized breccia at Tsenken N1 appears to be part of a different IOCG centre, and the plan is to drill that after hole 6. The mobile magnetotellurics (MobileMT or MMT) survey that is planned to commence shortly should detect conductive sulphides that are expected to lie in the central part of the IOCG system."

Details of the drilling

Three drill holes (TS001-TS003) were completed for a total of 645 metres (m) in the Tsenken N2 target area. Holes TS004 and TS005, drilled to a depth of 230 m and 494 m respectively, were drilled from the same drill platform -- hole 4 directed toward the west and hole 5 toward the east. Hole TS006 is collared one kilometre (km) north of holes TS004 and TS005 and is likely to be completed by the end of November.

Alteration minerals and alteration zoning at Tsenken N2/N3

The large magnetic features evident in the geophysics at Tsenken N2 and N3 relate to intense magnetite mineral growth that occurs with hematite flooding of the original rock -- be that impermeable volcanic layers or far more permeable sandstone. The iron oxide minerals, hematite and magnetite, as well as other alteration minerals that occur in somewhat concentric shells around IOCGs, indicate a vector toward the north -- which led to the decision to drill hole 6 in the northern part of the Tsenken N3 target area. Alteration mineral distribution is consistent with hole TS003 being the farthest from the core of the IOCG system, holes TS001 and TS002 being closer and holes TS004 and TS005 being closer still.

Native copper (pure copper) is present in parts of holes TS004 and TS005, and disseminated chalcopyrite occurs in parts of holes TS001, 2, 4 and 5.

Next steps

Since management is now realizing that the Tsenken N2-N3 IOCG system is at least 20 square km in extent, it makes sense to continue the exploration through large stepouts in the scout drilling program: Hole TS006 is collared one km to the north of holes 4 and 5. Hole TS006 is designed to intersect the heart of the Tsenken N2/N3 IOCG system.

It now appears likely that the copper-silver mineralized breccia -- interpreted as a diatreme breccia at Tsenken N1 -- is part of a different IOCG system. The plan is to drill hole TS-007 at Tsenken N1. The upcoming mobile MT geophysical survey should detect conductive sulphides in the heart of the IOCG systems, now that the company has the context provided by the scout drilling.

Qualified person

The technical information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania Resources Ltd.

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, the Lost Cities-Cutucu project, is located in the Jurassic metallogenic belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

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