FOR Large Tract of Mineral Concessions IN Northern PERU
TSX
-
V: ARU
NR 20
20
-
1
9
AURANIA
PROVIDES
UPDATE ON
APPLICATION
FOR LARGE TRACT OF MINERAL
CONCESSIONS IN NORTHERN PERU
Toronto, Ontario,
May
2
2
, 2020
–
Aurania Resources Ltd. (TSXV: ARU
; OTCQB: AUIAF;
Frankfurt: 20Q
) (“Aurania” or the “Company”)
is pleased to provide
additional
detail
about
its
application for mineral concessions
in northern Peru
.
Following careful review of existing geological data
from
its
Lost Cities
–
Cutucu
P
roject
(“Project”)
in southeastern Ecuador
, the Company
believes that is has
identif
ied a
n
opportunity
for
additional
copper and gold
exploration
as a result of the possible
extension
of
a
mineral
belt from
our project in
Ecuador into northern Peru
(see
press release dated Jan 17, 2020
).
In
order to be able to
capitalize on
this
potential
opportunity, A
urania
has
applied for
419
mineral concessions
covering 413,200 Hectares (“Ha”)
in northern Peru
.
Although
the concessions may not formally be granted
for several months
under Peruvian law
,
we have already commenced a detailed
review of existing data
that
is
available
from
the Peruvian government
.
T
he Company
will provide updates in respect of the gold and
copper potential as work progresses.
Dr
.
Keith Barron,
Aurania’s Chairman and CEO commented, “
We recognized in March, 2019 that copper
-
silver sediment
-
hosted mineralization of a similar style and grade to t
hat we have discovered ourselves in
the Cutucu Cordillera in Ecuador was discovered by a competitor company in Peru, approximately 300
kilometres to the south. Moreover, their mineralization lay within the same geological formation as that
mapped in Ecuad
or, albeit with a different name in Peru. The Peruvian occurrences appeared to occur in
proximity to salt domes, and within our concessions in Ecuador are two areas that have been
utilized
by the
Shuar community for decades
,
if not centuries
,
for salt.
B
elieving that salt is geochemically a significant
piece of the puzzle and potentially the reason for
the extent and distribution of the copper and silver, it was
considered too compelling to ignore the Peruvian opportunity, and we filed for open ground cov
ering the
prospective sedimentary horizons in proximity to salt deposits previously discovered during oil exploration.
We believe that the areas may also have some copper porphyry potential if they prove to be an analogous
geological setting to our groun
d across the border in Ecuador
.
”
Concession Application Process
Aurania has registered a subsidiary in Peru, through which
applications were submitted to the
Peruvian
Mining and Metallurgical Geological Institute “INGEMMET”
for 419 concessions covering 413,200Ha
in
late 2019. The applications have been progressing through the review process since then.
The granting
process is in the hands of the Government and the Company does not have a timetable for this, nor is it
guaran
teed that all of the applications will be approved.
Mineral concession fees in Peru are US$3.00 per
hectare per annum
and
the next payment
will likely be due by the end of June 2021 and will be payable on
the number of hectares still held at that time.
Exploration Data
The concession applications
are divided into
20 blocks located where the sedimentary layers that are
prospective for copper
-
silver are located either at
, or near,
surface (Figure 1). The concession areas in Peru
have been extensively cov
ered with seismic, magnetic
,
and gra
vimetric
geophysical surveys undertaken by
oil and mineral exploration companies, as well as by the Peruvian
S
tate. In addition, regional stream
sediment sampling has been undertaken by the State over
part
of the area,
and
assays of
rock
-
chip sampling
are also available
.
T
his data is available at nominal cost from the Peruvian government. Hence, Aurania’s
exploration of the concession blocks has started with a compilation of these large datasets to refine targets
befor
e any exploration is undertaken
in the field.
Figure
1
.
Map showing the approximate location of the mineral concession applications in Peru
made
by Aurania’s subsidiary, Vicus,
relative to Aurania’s Lost Cities
–
Cutucu Project in Ecuador. The
map shows the distribution of geophysical data of different types relevant to exploration of the
concessions that is available from the Peruvian State
.
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 is a
Qualified Person as defined by National Instrument 43
-
101, Standards of Disclosure for Mineral Projects
of the Canadian Securities Administrators.
About Aurania
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.
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
-
.
For further information, please contact:
Carolyn Muir
VP Investor Relations
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 may contain forward
-
looking inf
ormation 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”. S
ince 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, Aurani
a 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 materia
lly 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 objectives, goals
or future plans, statements, exploration results, potential mineralizatio
n, the corporation’s portfolio,
treasury, management team and enhanced capital markets profile, the estimation of mineral resources,
exploration and mine development plans, timing of the commencement of operations and estimates of
market conditions. Factor
s 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 fea
sibility 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 t
o
fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations
in commodity prices, delays in the d
evelopment 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 Aurani
a 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 assur
ance 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, oth
er than as required by law.