Aurania Reports High-Grade Copper from a New Target from Its Project IN Ecuador and Approval of Warrant Extension
TSX-V: ARU
NR 2018-35
AURANIA REPORTS HIGH-GRADE COPPER FROM A NEW TARGET FROM ITS PROJECT
IN ECUADOR AND APPROVAL OF WARRANT EXTENSION
Toronto, Ontario, November 1, 2018 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF)
(Frankfurt: 20Q) (“Aurania” or the “Company”) reports copper grades of 4% to 7% from grab
samples of rock taken during reconnaissance explorati on of the Kirus and the Tsenken targets, adding to
the high-grade copper recently reported from the Jemp e target in the Company’s Lost Cities – Cutucu
Project (“Project”) in Ecuador. Silver grades are also high, ranging from 20 to 79 grams per tonne (“g/t”)
in these samples.
Copper is present as the minerals chalcocite, cuprite a nd malachite in slabs of fine-grained, bedded tuffs
and sedimentary rocks. These are considered “secondary” copper minerals and are believed to represent
the remobilization and precipitation of copper, de rived from weathering of primary porphyry copper
occurrences nearby and transported laterally in th e water table. Such secondary zones are termed
“supergene” and can form economically valuable and shallow enrichment zones known as “copper
blankets”. The humid tropical environment typically promotes the generation of supergene enrichment
zones at shallow levels in proximity to copper porph yry occurrences, however erosion often strips them
away. To the south of Aurania’s concession area in the Cordillera del Condor only one example of
supergene enrichment above and adjacent to a c opper porphyry body has been preserved. Within our
concession area, our geological observation suggests that the degree of recent erosion has been minimal.
What this means is that the geological environment is favourable for the preservation of copper blankets if
they occur.
Secondary copper minerals have been found in an area of 1km by 1.5km in extent adjacent to the Kirus
magnetic target. Additionally, a grab sample taken from the Tsenken magnetic feature that lies 8km from
Kirus contains a very high copper grade of 7.1% and moderate silver at 19g/t. Results previously
reported in our October 4, 2018 press release included 3% copper and 47g/t silver from a grab sample of
rock in a stream draining an area of conspicuously strong magnetism at Jempe. Jempe lies 12km from the
new Tsenken target, and 20km from Kirus.
Chairman & CEO, Dr. Keith Barron commented, “It is ear ly days yet, but I believe it is very significant
that our geologists are finding secondary copper minerals in proximity to our magnetic targets. This is
unlike elsewhere in Ecuador in porphyry copper explor ation. By analogy with the Cordillera del Condor
to the south, we always believed that at least a proportion of our magnetic targets would be porphyry
copper occurrences. Our findings would suggest that in the Cutucu, copper blankets have been at least
partially preserved over a 20km wide area, and that substantial copper enrichment and natural upgrading
has taken place. Elsewhere in the world, such as at Morenci in Arizon a, the primary porphyry
mineralization at depth is not economically inter esting but the enrichment blanket has sustained
production for many years. We are very encouraged”.
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“Our approach to copper-gold exploration has been to focus our geochemical and prospecting program on
targets selected from the airborne ge ophysics survey that we flew over the whole Project area late last
year. This approach has proved highly successful with porphyry characteristics having been found at four
of the five magnetic features so far investigated in th e field. We plan to driv e these targets to readiness
for scout drilling through focused field work in the next few months”.
Grab Sample (Rock) Results
Kirus Target
Analysis of the three grab samples of rock from the Kirus target that exceeded the limit of detection of the
assay method used for routine exploration (reported in our October 4, 2018 press release) has returned the
following values:
• 5.39% copper and 54.5g/t silver;
• 4.83% copper and 58.8g/t silver; and
• 4.28% copper and 48.4g/t silver.
A new grab sample with strong malachite (green mi neral in Figure 1) and chalcocite mineralization
contains 5.3% copper and 79g/t silver. The new samp le was found 1.5km to the southwest of the high-
grade samples listed above (see Figure 2), thereby outlini ng a large target that is at least 1km by 1.5km in
extent. These samples were found in rivers that fl ow northward off the area of strong magnetism shown
in Figure 2. The area of strong magnetism represents the principal target at Kirus.
Figure 1. Photograph of a new grab sample from the Kirus target showing green malachite (copper
carbonate). This sample contains 5.3% copper and 79g/t silver. The dark background mineral is
secondary biotite - a potassium-bearing alteration mineral. The scale bar is in centimetres.
Tsenken Target
A grab sample taken from the magnetic feature that lies 8km from Kirus contains a very high copper
grade of 7.1% and moderate silver at 19g/t. As with Kirus, the target at Tsenken is likely to be the
strongly magnetic feature (Figure 2).
Jempe Target
The other area in which secondary copper has been en countered is at Jempe, which is centred on areas of
strong magnetism. Results reported in our October 4, 2018 press release included 3% copper and 47g/t
silver from a sample of outcrop in a stream draining an area of conspicuously strong magnetism. Jempe
lies 12km from the new Tsenken target.
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Figure 2. Map of magnetic data from the Kirus an d Tsenken targets showing the location of the high-
grade rock samples. Magnetic data are illustrated by colour, dark blue being the least magnetic areas
and purple/pink shades being the most intensely magnetic.
Sample Analysis & Quality Assurance / Quality Control (“QAQC”)
The samples were prepared for analysis at ALS Global’s (“ALS”) lab in Quito, Ecuador. The rock
samples were jaw-crushed to 10 me sh (crushed material passes through a mesh with apertures of 2
millimetres (“mm”)), from which a one-kilogram sub-samp le was taken. The sub-sample was crushed to
a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.
Aurania personnel inserted a certified st andard pulp sample, alternating with a field blank, at intervals of
approximately 20 samples in all sample batches.
ALS’s preparation lab in Quito sent the prepared samples to its analy tical facility in Lima, Peru for
analysis. Approximately 0.25g of rock pulp underwen t four-acid digestion and analysis for 48 elements
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by ICP-MS. For the over-limit samples, those that ha d a copper grade of greater than 1%, 0.4 grams of
pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.
Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.
ALS reported that the analyses had passed its internal QAQC tests. In addition, Aurania’s analysis of
results from its QAQC samples showed the batches reported on above, lie within acceptable limits.
Update on Scout Drilling Program
The Company is awaiting one more permit to clear the way for scout drilling of the epithermal gold-silver
target at Crunchy Hill. Tenders have been recei ved from three suitably qualified drill contracting
companies and are currently under review. It is currently anticipated that the epithermal gold-silver target
at Yawi will be scout drilled after Crunchy Hill.
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.
Clarification Regarding Noble Capital Markets Inc. Agreement
On October 9, 2018, the Company announced that it had entered into a capital markets support agreement
(the “Agreement”) with Noble Capital Markets Inc (“ Noble”). As per the terms of the Agreement, the
Company has agreed to pay to Noble US$111,000 the first year, paid as follows: $21,000 paid upon
signing the Agreement and $30,000 paid each three-m onth period (“Quarterly”) thereafter throughout the
term of the Agreement. The Agreement commenced on October 1, 2018 (“Commencement Date”) and
will terminate on the second anniversary, unless extended as by mutual agreement. After a period of eight
(8) months following the Commencement Date, this Agre ement may be terminated by either party at any
time, with or without cause, upon 30 days’ prior written notice to the other party.
Warrant Term Extension Approved by TSX Venture Exchange
The TSX Venture Exchange has consented to the exte nsion of 1,069,909 non-broker warrants in relation
to the Company’s 2017 private placement financing. Details are as follows:
• Original expiry date of warrants: October 19, 2018, subject to accelerated expiry provision;
• New expiry date of warrants: October 19, 2019, subject to accelerated expiry provision; and
• Exercise price of warrants: C$3.00.
About Aurania
Aurania is a junior exploration mining company engage d in the identification, evaluation, acquisition and
exploration of mineral property interests, with a fo cus 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/aurania ltd/, Twitter at https://twitter.com/auranialtd,
and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.
For further information, please contact:
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Carolyn Muir
Manager – Investor Services
Aurania Resources Ltd.
(416) 367-3200
Dr. Richard Spencer
President
Aurania Resources Ltd.
(416) 367-3200
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain 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 d escribe Aurania’s future plans, objectives or goals,
including words to the effect that Aurania or its mana gement expects a stated condition or result to occur.
Forward-looking statements may be identified by su ch 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 ma nagement’s expectations. Risks, uncertainties and
other factors involved with forward-looking informa tion 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 ne ws release includes, but is not limited to, Aurania’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 mineral resources, exploration and mine deve lopment 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 resour ces to reserves, the inability to complete a feasibility
study which recommends a production decision, the prel iminary nature of metallurgical test results,
delays in obtaining or failures to obtain required gove rnmental, regulatory, environmental or other project
approvals, political risks, inability to fulfill the duty to accommodate indige nous peoples, uncertainties
relating to the availability and costs of financing n eeded 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 significan tly 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 ar e 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 th e disclosed time frames or at all. Aurania disclaims any intention or
obligation to update or revise any forward-looking info rmation, whether as a result of new information,
future events or otherwise, other than as required by law.