Aurania Defines Specific Epithermal Target- “Crunchy Hill” -Within the Latorre Area
TSX-V: ARU
NR 2018-11
AURANIA DEFINES SPECIFIC EPITHERMAL TARGET- “CRUNCHY HILL” -WITHIN THE
LATORRE AREA
Toronto, Ontario, April 6, 2018 – Aurania Resources Ltd. (TSXV: ARU) (“Aurania” or the
“Company”) is pleased to report th at the source of the “ vuggy silica” blocks – a known indicator of
epithermal gold-silver systems - has been found in the Latorre B area in the Lost Cities – Cutucu Project
(the “Project”) in southeastern Ecuador. The target has been renamed “Crunchy Hill”. The Company is
also pleased to report that f urther stream sediment sampling has approximately doubled the size of the
Latorre A target.
To view the discovery of vuggy silica at Crunchy Hill as recorded on a field camera, click on the link below:
http://www.aurania.com/crunchy-hill-discovery/
CEO and Chairman, Dr. Keith Barron commented, “In our last press release on the Latorre area (see press
release dated February 28, 2018), we mentioned that blocks of vuggy silica had been found in the Latorre
B target area; we have now found the source of this key marker of epithermal systems. The target was
initially identified by only two stream sediment samples enriched in naturally-occurring arsenic, antimony,
mercury, silver, selenium and thallium – which are all pathfinder elements for epithermal gold- silver
systems. Diligent follow-up of this small area of interest has led to the discovery of a 400-metre long ridge
of vuggy silica – a sponge-textured rock composed of cavities within a web of residual silica - that is very
commonly associated with epithermal systems. Assays from rock-chip samples from outcrop at Crunchy
Hill are pending and soil sampling for geochemical analysis is currently underway from a grid pattern over
the ridge. It is highly probable that C runchy Hill will be our first drill target in the Lost Cities – Cutucu
Project.”
Crunchy Hill Target
Crunchy Hill, one of five targets within the larger Latorre area, was so-named because of the characteristic
sound made underfoot as silica grains grind against each other in the clay -rich soil. Intense vuggy silica
occurs with banded chalcedonic silica veinlets along a northeast-trending ridgeline in a sequence of black
shale, limestone and siltstone. Heavy and porous iron gossan blocks occur with the vuggy silica, indicating
that the system originally contained abundant sulphide minerals that have been weathered to iron oxide.
Rock-chip samples of blocks of vuggy silica, gossan and hematite (iron oxide) breccia in the streams
draining Crunchy Hill have returned assays of up to 10 grams per tonne (“g/t”) of silver, along with high
levels of pathfinder elements such as naturally-occurring arsenic, antimony, mercury and thallium – volatile
elements. One rock-chip sample that returned 3g/t silver was extremely enriched in thallium (219g/t) and
to some extent in mercury (2.2g/t). The occurrence of silver , along with volatile elements, in rock-chip
samples is encouraging for gold mineralization because it tends to precipitate over a wider area (above and
adjacent to) the gold-bearing core of these systems.
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A second zone of vuggy silica with superimposed, banded chalcedonic silica, has been found one kilometre
west of Crunchy Hill, while manganese oxide, along with adularia casts in banded chalcedonic silica
veinlets, have been found in blocks in a stream approximately one kilometre north of Crunchy Hill. The
manganese oxide is suspected to have been weathered from manganese carbonate, rhodochrosite. Both
adularia and rhodochrosite are key indicator minerals at the Fruta del Norte (“FDN”) gold-silver deposit in
Ecuador which is currently being developed by Lundin Gold.
Exploration Model at Crunchy Hill
The vuggy silica at Crunchy Hill is typical of high sulphidation epithermal systems such as Alto Chicama
(Lagunas Norte Mine) in Peru, while the banded chalcedonic silica veinlets are more typical of intermediate
or low sulphidation epithermal systems. The FDN gold -silver deposit that lies 100 km along trend is a
classic example of an intermediate sulphidation epithermal system. The Company’s current exploration
model for the Crunchy Hill target consists of a central high sulphidation epithermal system like Alto
Chicama that grades outward into an intermediate sulphidation system similar to that in which the Fruta del
Norte deposit occurs.
Soil sampling is currently underway over the Crunchy Hill target and initial results are expected in early
May. It is anticipated that geochemistry from the soil survey will define zones that are enriched in volatile
elements and these are likely to represent specific targets for scout drilling. A man-portable diamond drill
rig has been reserved from a contract company for scout drilling in the latter half of the year.
Latorre A Target
Additional stream sediment sampling in the Latorre A target area has detected elevated concentrations of
naturally-occurring arsenic and antimony over an area approximately twice the size of the original target
area (Fig. 1) reported in the Company’s press release dated February 28, 2018. The target now covers an
area of approximately 6 square kilometres.
The next step in the Latorre A target area is more detailed geological review followed by soil sampling at
regular intervals along the crests of ridges – so-called ridge and spur soil sampling. This cost-effective
approach should define specific targets within the large area of anomalous arsenic and antimony. This more
detailed exploration is expected to result in the definition of additional targets for scout drilling.
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Technical Information
The technical information contained in this news release has been verified and approved by Jean -Paul
Pallier, MSc., Aurania’s VP-Exploration. Mr. Pallier is a designated EurGeol by the European Federation
of Geologists and a Qualified Person as defined by National Inst rument 43-101, Standards of Disclosure
for Mineral Projects of the Canadian Securities Administrators.
About Aurania
Aurania is a junior exploration mining company engaged in the identification, evaluation, acquisition and
exploration of mineral property interests, with a focus on precious metals and copper. 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.
Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as
well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd,
and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.
Figure 1. Results of stream sediment geochemistry (for arsenic, antimony, silver, molybdenum, selenium
and thallium) from the Latorre area showing the location of the five areas of metal enrichment found to
date.
Crunch
y Hill
Latorre A
Latorre West
Latorre
East
Latorre C
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For further information, please contact:
Carolyn Muir
Manager – Corporate & Investor
Services
Aurania Resources Ltd.
(416) 367-3200
Dr. Richard Spencer
President
Aurania Resources Ltd.
(416) 367-3200
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking information that involves substantial known and unknown risks
and uncertainties, most of which are beyond the control of Aurania. Forward -looking statements include
estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the
effect that Aurania or its management expects a stated condition or result to occur. Forward -looking
statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”,
“could”, “would”, “will”, or “plan”. Since forward- looking statements are based on assumptions and
address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Although these statements are based on information currently available to Aurania, Aurania provides no
assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual events, results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward- looking information.
Forward looking information in this news release includes, but is not limited to, Aurania’s company’s
objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s
portfolio, treasury, management team and enhanced capital markets profile, the estimation of min eral
resources, exploration and mine development plans, timing of the commencement of operations and
estimates of market conditions. Factors that could cause actual results to differ materially from such
forward-looking information include, but are not limited to, failure to identify mineral resources, failure to
convert estimated mineral resources to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining
or failures to obtain required governmental, regulatory, environmental or other project approvals, political
risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the
availability and costs of financi ng needed in the future, changes in equity markets, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and
operating costs varying significantly from estimates and the other risks involved in the mineral exploration
and development industry, and those risks set out in Aurania’s public documents filed on SEDAR. Although
Aurania believes that the assumptions and factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on such information, which only applies
as of the date of this news release, and no assurance can be given that such events will occur in the disclosed
time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, other than as required by
law.