Auryn commences drilling at the Huilacollo Gold Project in Southern Peru and provides update
Auryn commences drilling at the Huilacollo Gold Project in
Southern Peru and provides update
Vancouver, British Columbia – November 27th, 2017 - Auryn Resources Inc. (TSX:
AUG, NYSE American: AUG, “Auryn” or the “Company”) is pleased to announce that
after a short delay, the Company has received the final notice to commence drilling
operations from the Peruvian Ministry of Energy and Mines on the Huilacollo oxide gold
epithermal project located in Southern Peru. The drill is currently being mobilized and
the program is anticipated to start on or around November 30th.
The initial core drill program will include 5,000 meters across the Huilacollo project that
will be conducted in 2 phases where the first phase will focus on the expansion around
the mineralized areas around the top of Andamarca hill where minimal historical drilling
has taken place (Figure 1a). The second phase of drilling will continue in 2018 and will
focus on the Tacora and Huilacollo II licenses.
The Tacora target area is interpreted to be a part of a potential feeder system to the
known mineralization on the Andamarca hill. It is defined by a 4 kilometer long northeast
trending graben that contains abundant breccia bodies that represent high priority oxide
gold targets. Twelve historical grab samples from across an 80 meter wide breccia body,
detailed in the table below, demonstrate the excellent potential of these targets.
Tacora Historical Grab Samples
4.98 Au g/t 0.65 Au g/t
3.49 Au g/t 0.65 Au g/t
0.83 Au g/t 0.59 Au g/t
0.76 Au g/t 0.52 Au g/t
0.72 Au g/t 0.48 Au g/t
0.70 Au g/t 0.30 Au g/t
The targets on the Huilacollo II license are defined by the recently discovered 1.8
kilometers of gold and silver anomalies (Figures 1a & 1b) that are interpreted to
represent an intermediate sulphidation system. No drilling has been conducted over
these anomalies provide Auryn with large-scale targets that have the potential to deliver
a significant discovery.
The Huilacollo project is located approximately 15 kilometers northwest of the producing
Pucamarca mine that currently has a 1.35 million ounce oxide gold resource 1 and is
1 Minsur S.A. – Corporate Presentation – March 2017 -‐ http://www.minsur.com/wp-‐
content/uploads/pdf/Presentacion%20Corporativa/Corporate_Presentation_Minsur_4Q_2016.pdf
being mined at 0.5g/t Au with a cash cost of US$313 per ounce. Infrastructure at the
Huilacollo project is exceptional with power, water, and well-maintained national roads
within 1.5 kilometers of the project boundaries.
Shawn Wallace, President and CEO commented, “We are very excited to begin drilling
the first of our four Peruvian projects. The Huilacollo project has exceptional access to
infrastructure and is viewed by Auryn management as an opportunity to discover highly
valued oxide gold ounces.“
Mr. Wallace further stated, “The Huilacollo drill program will be the start of a continued
exploration drilling effort in Peru which will continue across the Sombrero, Baños del
Indio and Curibaya projects and give Auryn Shareholders the opportunity for significant
discoveries year round.”
Auryn’s technical team believes that the gold bearing system at Huilacollo is related to
the substantial Baños del Indio alteration system along a north-south trending fault that
link the two epithermal systems (Figure 2). The geological data being gathered at
Huilacollo will be useful when applied to the Baños del Indio project.
Other Ongoing efforts in Peru
Sombrero
Auryn is in the final process of completing the first of two community agreements with
the local communities at Sombrero, which will allow access to the southern half of the
project. Previous trenching and surface work in this area have yielded several multi-
gram gold grab samples and multi-percent copper samples (see table 1 & table 2) in
addition to a trench of 53 meters at 1.75 g/t including 14m of 5.75g/t Au (See Auryn’s
press release dated February 24, 2017). Access to the northern half of the project is
currently being pursued.
In addition, the Company has expanded the Sombrero position from the original 3,800
hectares to over 15,000 hectares in response to reconnaissance activities encountering
Au/ Cu mineralization in several areas.
Baños del Indio
Negotiations with the host communities of the Baños del Indio project are ongoing and
agreements are expected to be reached in 2018.
Pending News:
• Homestake Ridge, BC – drill results
• Gibson MacQuoid, NU – surface results
• Committee Bay, NU - balance of drill results, additional Aiviq Till Results and
March 2018 plans
Michael Henrichsen, P.Geo, COO of Auryn, is the Qualified Person who assumes
responsibility for the technical disclosures in this press release.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURYN RESOURCES INC.
Shawn Wallace
President and CEO
For further information on Auryn Resources Inc., please contact Jay Adelaar, Vice -
President of Investor Relations at (778) 729-0600 or [email protected]
About Auryn
Auryn Resources is a technically driven junior mining exploration company focused on
delivering shareholder value through project acquisition and development. The
Company’s management team is highly experienced with an impressive track record of
success and has assembled an extensive technical team as wel l as a premier gold
exploration portfolio. Auryn is focused on scalable high -grade gold deposits in
established mining jurisdictions, which include the Committee Bay and Gibson
MacQuoid gold projects located in Nunavut, the Homestake Ridge gold project in British
Columbia and a portfolio of gold projects in southern Peru, through Corisur Peru SAC.
Historic Grabs (Tacora, Peru):
The historic grab and trench samples were collected by previous owners, Bear Creek
Mining, Anglo American, and Falcon Exploraciones, from 2004 through 2016. Grab
samples are a non-representative sampling technique and may not be representative of
the mineralization present on the project. Further, Auryn has not conducted any due
diligence on whether appropriate QA/QC protocols were followed in the collection of
these samples, nor can it confirm their accuracy or repeatability.
Trenches 2016 (Sombrero, Peru):
Analytical samples were taken from each 1 meter interval of trench floor resulting in
approximately 2-4kg of rock chips material per sample. Collected samples were sent to ALS
Lab in Lima, Peru for preparation and analysis. All samples are assayed using 50g nominal
weight fire assay with atomic absorption finish (Au-AA26) and multi-element aqua regia
digest ICP-AES/ICP-MS method (ME-MS41). QA/QC programs for 2016 trench grab
samples using internal standard and blank samples; field and lab duplicates indicate good
overall accuracy and precision.
Intervals were calculated using a minimum of a 0.1 g/t Au cut-off at beginning and end of the
interval and allowing for no more than seven consecutive samples (seven meters) of less
than 0.1 g/t Au.
Forward Looking Information
This release includes certain statements that may be deemed “forward -looking
statements”. Forward-looking information is information that includes implied future
performance and/or forecast information including information relating to, or associated
with the acquisition and title to mineral concessions. These statements involve known
and unknown risks, uncertainties and other factors which may cause actual results,
performance or achievements of the Company to be materially different (either positively
or negatively) from any future results, performance or achievements expressed or
implied by such forward-looking statements. Readers should refer to the risks discussed
in the Company’s Annual Information Form and MD&A for the year ended December 31,
2016 and subsequent continuous disclosure filings with the Canadian Securities
Administrators available at www.sedar.com and the Company’s registration statement
on Form 40-F filed with the United States Securities and Exchange Commission and
available at www.sec.gov.
Disclaimer
The Toronto Stock Exchange nor the Investment Industry Regulatory Organization of
Canada accepts responsibility for the adequacy or accuracy of this release.
Figure 1a: Figure illustrating the Huilacollo claims, previous drilling, gold surficial geochemical
results, the oxide gold target area of Tacora, and the intermediate sulphidation targets on the
Huilacollo II license.
Figure 1b: Figure illustrating the Huilacollo claims, previous drilling, silver surficial geochemical
results, the oxide gold target area of Tacora and the intermediate sulphidation targets on the
Huilacollo II license.
Figure 2: Figure showing the Huilacollo and Banos del Indio claims with regional structures
Table 1
SAMPLE LONG LAT TYPE MINSAu ppmAg ppmCu %
Q921194 -74.417164 -13.899886rock oxide 7.54 1.72 0.0227
Q921196 -74.417171 -13.899673rock oxide 7.09 0.89 0.0465
Q921187 -74.416947 -13.900344rock oxide 6.23 1.14 0.111
Q919731 -74.415436 -13.891167rock oxide 5.94 0.41 0.0174
Q919732 -74.415424 -13.891188rock oxide 5.63 0.55 0.0098
Q921188 -74.417014 -13.900224rock oxide 5.36 1.02 0.045
Q921195 -74.417186 -13.899773rock oxide 3.99 0.49 0.0777
Q921031 -74.417873 -13.901791rock oxide 3.28 1.56 0.149
Q921191 -74.417099 -13.900057rock oxide 3.16 0.6 0.188
Q921189 -74.417069 -13.900139rock oxide 2.64 0.42 0.0652
Q919724 -74.415468 -13.891025rock oxide 2.41 0.25 0.0074
Q919722 -74.415532 -13.890985rock oxide 2.06 0.14 0.0073
Q921159 -74.428877 -13.900764rock 1.74 0.21 0.0301
Q919723 -74.415505 -13.89101rock oxide 1.33 0.07 0.0078
Q921001 -74.415179 -13.892474rock oxide 1.325 2.54 0.0116
Q921035 -74.424161 -13.900526rock oxide 1.165 11.7 0.012
Q921584 -74.42417 -13.904453rock oxide 0.931 1.73 0.164
Q919734 -74.415359 -13.891274rock oxide 0.896 0.22 0.0038
Q919748 -74.415456 -13.892079rock oxide 0.834 0.43 0.0212
Q921192 -74.417129 -13.899988rock oxide 0.813 0.46 0.0171
Q919742 -74.41534 -13.891871rock oxide 0.739 0.43 0.0471
Q919736 -74.41539 -13.891369rock oxide 0.738 0.1 0.0051
Q919744 -74.415291 -13.891952rock oxide 0.693 0.48 0.033
Q921563 -74.425678 -13.90409rock oxide 0.688 4.61 0.0166
Q919721 -74.415573 -13.890934rock oxide 0.672 0.17 0.0028
Q919740 -74.4153 -13.891562rock oxide 0.585 0.23 0.0225
Q921034 -74.41793 -13.902792rock oxide 0.57 0.6 0.031
Q919746 -74.415422 -13.891981rock oxide 0.545 0.32 0.0276
Q921037 -74.424026 -13.900299rock sulphide 0.513 6.93 0.0047
Q921521 -74.425197 -13.902403rock oxide 0.483 4.05 0.23
Q919735 -74.415401 -13.891287rock oxide 0.461 0.31 0.0133
Q921158 -74.428688 -13.900634rock 0.457 0.06 0.0653
Q921597 -74.424702 -13.904238rock oxide 0.447 23.2 0.0692
Q919719 -74.415663 -13.890893rock oxide 0.445 0.11 0.003
Q919675 -74.414316 -13.898073rock oxide 0.393 8.18 16
Q919743 -74.415293 -13.891902rock oxide 0.382 0.75 0.0419
Q921029 -74.417277 -13.90278rock oxide 0.381 12.35 0.0644
Q919717 -74.415661 -13.890834rock oxide 0.371 0.11 0.0049
Q919733 -74.41539 -13.891245rock oxide 0.362 0.07 0.0033
Q921600 -74.415324 -13.892504rock oxide 0.358 0.28 0.007