Auryn Identifies New, Significant Gold and Silver Targets at the Homestake Ridge Project
Vancouver, British Columbia – June 4, 2019 – Auryn Resources Inc. TSX: AUG, NYSE AMERICAN: AUG, “Auryn” or the “Company”), is pleased to announce that two additional targets have been identified at the Homestake Ridge Gold Project within the Golden Triangle in British Columbia, Canada. These targets are approximately 10km northeast and 3.5km south of the previously identified high-grade resource (125,000 oz. of 6.25 g/t Au, 1M oz. of 47.9 g/t Ag indicated and 932,000 oz. of 4 g/t Au and 21.2M oz. of 90.9 g/t Ag inferred 1) and were identified in a regional surface exploration program conducted in 2018 and using historical data from the 7500 hectare land package.
At the new northern target, which Auryn is calling Bria, rock samples returned assays of up to 11g/t gold and 448 g/t silver (Table 1). At the new southern target, Kombi, two separate high-priority areas have been defined from consecutive drainage basins where historical stream sediments were anomalous in gold and silver (Figure 1).
A Message from Ivan Bebek, Executive Chairman & Director:
“In an effort to make a bigger exploration impact at Homestake Ridge we looked away from the known resources and successfully identified two, new large-scale gold and silver opportunities. These targets are in areas that have seen modest previous exploration and importantly contain high-grade and demonstrate the potential for substantial mineralization.
“In the coming weeks we will be receiving and releasing results from the historical drill core we obtained from our Sombrero copper-gold project in Peru as well as providing a Committee Bay update. The update will include plans for 2019 and a video that explains our use of artificial intelligence at the project.”
The two, new large-scale targets on the property were identified following a full review of historical datasets, geologic mapping, stream sediment and rock chip sampling.
The northern target, Bria, is defined by high-grade gold and silver rock samples from mapped quartz veins that are believed to be related to an Eocene aged intrusive rock. Maximum values from these samples are 11g/t gold and 448 g/t silver, demonstrating the potential to find high-grade mineralization within the target area. The mineralized veins that were sampled are considered to be leakage structures from potential mineralized bodies associated with mapped intrusive rocks. Rock sample results are presented below in Table 1.
|Bria Target Rock Samples*|
|Sample ID||Au (g/t)||Ag (g/t)||Cu ppm||Pb ppm||Zn ppm|
|*Approximately 1-2kg of material was collected for analysis and sent to ALS Lab in Thunder Bay, ON for preparation and then
to Vancouver BC for analysis. All samples are assayed using 30g nominal weight fire assay with ICP finish (Au-ICP21) and
multi-element four acid digest ICP-AES/ICP-MS method (ME-MS61). Where ICP21 results were > 5 g/t Au the assay were
repeated with 30g nominal weight fire assay with gravimetric finish (Au-GRA21). Where MS61 results were greater or near
100 ppm Ag the assay were repeated with ore grade four acid digest method (Ag-OG62). QA/QC programs for 2017 rock
grab samples using internal standard samples, lab duplicates, standards and blanks indicate good accuracy and precision in a
large majority of standards assayed. Grab samples are selective in nature and cannot be consider as representative of the
The southern target area, Kombi, has been defined by historical stream sediment samples taken in 2010, which Auryn’s technical team believes are robust due to the sample collection methodology and assaying methods (see technical appendix). One of the high-priority areas at Kombi is defined by a two kilometer trend of gold-in-stream sediments within multiple adjoining drainage basins, demonstrating peak values of 0.91 g/t gold. This continuous trend of gold over multiple catchment areas coincides geologically with the Betty Creek Formation that also hosts the defined Homestake Ridge deposits.
The second high-priority area within Kombi has been identified through stream sediment samples from adjoining drainage basins that define a one-kilometer-long trend at the southern limit of the property. The anomalies are defined by strong gold, silver, copper, antimony and arsenic responses that coincide with the Stuhini group formation, which hosts the former producing high-grade Snip mine that produced approximately one million ounces of gold at an average grade of 27.5 g/t2.
2018 Exploration Program
The 2018 exploration program focused on developing new gold and silver targets away from the defined resource in addition to a 2482 meter drill program at the South Reef target. The drill program consisted of six drill holes and did not produce any significant results, although sporadic gold mineralization was encountered in each drill hole as presented below in Table 2.
|Intercepts Highlight 2018 – South Reef|
|Hole ID||From (m)||To (m)||Interval (m)||Au (g/t)||Ag (g/t)|
|True widths of mineralization are unknown based on current geometric understanding of the mineralized intervals.|
Auryn has budgeted for a $700,000 CAD follow-up surface work program in Q3 2019. The program will include additional geologic mapping, rock sampling and ground geophysical surveys at the newly defined targets. The intention is to use the results from this work in the development of future drill targets.