Auryn Intersects 116 meters of 0.58% Copper Equivalent in Historical Drill Core from Auryn’s Fierrazo Target at Sombrero
Auryn Intersects 116 meters of 0.58% Copper Equivalent in Historical Drill
Core from Auryn’s Fierrazo Target at Sombrero
Vancouver, British Columbia – June 13, 2019 – Auryn Resources Inc. (TSX: AUG, NYSE
AMERICAN: AUG, “Auryn” or the “Company”) is pleased to announce results from eight historical drill
holes, totaling 988 meters of drilling, from the Fierrazo target at the Sombrero project in Southern Peru.
These holes were drilled in 2013 targeting iron skarn mineralization, however Auryn’s ass ay results
encountered copper-gold mineralization in each hole. Highlights include 116 meters of 0.58% copper
equivalent (0.42% Cu and 0.24 g/t Au), 90.4 meters of 0.51% copper equivalent (0.48% Cu and 0.05
g/t Au) and 51 meters of 0.53% copper equivalent (0.43% Cu and 0.16 g/t Au) (Figure 1 & Table 1).
Significance of the Results:
• Copper-gold sulphide mineralization extends to depth underneath the previously reported surface
channel sample of 232 meters of 0.55% Cu equivalent (see April 3, 2019 release).
• Copper-gold mineralization encountered at the Fierrazo target provides a clear analogue to
discover additional large-scale mineralized exoskarn bodies within the Sombrero property, based
on similar geophysical and geochemical signatures.
• The mineralization encountered in the historical drill holes confirms Auryn’s belief that Sombrero
has analogous geological and mineralization characteristics of the deposits of the Las Bambas
district.
A Message from Michael Henrichsen, COO & Chief Geologist:
“The presence of a cohesive copper -gold exoskarn body at Fierra zo has given us a great deal of
confidence in terms of discovering other large -scale exoskarn bodies, which could make Sombrero a
world-class discovery. Fierrazo is only a small window into the potential sub -surface mineralization and
we are very excited for what’s to come for the rest of the Sombrero Main system, where drill permits are
in process.”
Table 1:
The Fierrazo Target:
Geology:
The historical drilling at the Fierrazo target has defined a cohesive body of copper -gold exoskarn
mineralization at the lateral contact between the Ccasscabamba diorite sill and the Ferrobamba
limestones and Upper Mara shales and siltstones (Figure 2). The exoskarn body is characterized by
massive to semi-massive magnetite and disseminated chalcopyrite and pyrite mineralization that can be
cut by high-grade gold retrograde structures with chlor ite and epidote alteration. Copper -gold is hosted
Significant Intercepts – Historical Drill Holes*
Hole ID From (m) To (m) Interval
(m) Cu (%) Au (g/t) CuEQ %
FE-DDH-01A 0 90.4 90.4 0.48 0.05 0.51
including 46.2 88 41.8 0.88 0.02 0.89
FE-DDH-01B 0 64.1 64.1 0.32 0.08 0.37
including 0 33.5 33.5 0.51 0.13 0.59
FE-DDH-02 0 51 51 0.43 0.16 0.53
including 3.05 24 20.95 0.70 0.25 0.85
59 111 52 0.17 0.07 0.21
131 137 6 0.15 0.02 0.16
151 165 14 0.36 0.19 0.48
including 155 161 6 0.58 0.34 0.80
177 204 27 0.17 0.28 0.35
FE-DDH-03A 0 116 116 0.42 0.24 0.58
including 0 64 64 0.64 0.38 0.88
FE-DDH-03B 0.6 51.4 50.8 0.44 0.15 0.53
FE-DDH-04 0 125.25 125.25 0.20 0.14 0.29
including 11.4 22.4 11 0.41 0.34 0.63
and 94 115.6 21.6 0.33 0.21 0.46
FE-DDH-05 5.6 82 76.4 0.31 0.14 0.4
including 20 25.65 5.65 0.80 0.14 0.89
and 39.25 67 27.75 0.41 0.20 0.53
FE-DDH-06 21 73 52 0.24 0.06 0.27
including 23.1 36.55 13.45 0.42 0.10 0.48
* No less than 5m of >= 0.1 % Cu, maximum dilution 6m; metal price used for CuEq calculations: gold price US $1300/oz, copper price US
$3/lb (see technical disclosure: Historical Fierrazo Diamond Drill Hole (DDH) re-sampling 2019 (Sombrero))
within the Ferrobamba limestone, the calcareous shales and siltstones of the Upper Mara Formation,
within late-stage monzonitic porphyry dykes, and as endoskarn mineralization within the Ccasscabamba
diorite sill (Figures 2, 3, 4, 5, & 6).
The majority of the drilling at the Fierrazo target intersected copper -gold mineralization within the
calcareous sediments of the Upper Mara Formation due to the fact that the majority of the Ferrobamba
limestone has been eroded away at this target area (Figures 7 & 8). This is important as it
demonstrates an additional 70 – 100 meters of prospective stratigraphy for copper -gold
mineralization that had been previously unrecognized within the Sombrero project area.
Combining the Upper Mara Formation with the 225 meters of the Ferrobamba limestone along the
margins of the Ccasscabamba diorite sill demonstrates a minimum of 300 meters of prospective
stratigraphy for exoskarn mineralization within the Sombrero project area.
Drill Results:
Collectively, the historical drill holes define a mineralized body totaling 300 meters of strike length
with an average width of approximately 150 – 200 meters that is open both to the north and to the
south (Figure 1). The average grades of all intercepts within the historical core is 0.5% copper equivalent,
calculated using a 0.15% copper cut -off grade, as presented below in Table 2. This average grade
compares favorably to other deposits in the Las Bambas district such as Constancia, Antacapay, Haquira,
and Las Bambas projects (Table 3) . In addition, when calculating the average grades based on the
lithology within the historical drill core at Fierrazo, it is observed that the grade within the calcareous
shales and siltstones of the Up per Mara Formation is 0.46% copper equivalent compared to 0.59%
copper equivalent within the Ferrobamba limestone (Table 4). Auryn’s technical team believes it is then
reasonable to assume this grade relationship will be consistent when exploring other exo skarn targets,
such as at the Chumpi target where higher grades could be encountered within the Ferrobamba limestone
(Figure 9).
Table 2:
Combined Weighted Average of All Historical Drill Intercepts*
Combined
COG % Cu Length (m) Cu (%) Au (g/t) CuEQ (%) AuEQ (g/t)
0.10 725 0.33 0.14 0.42 0.66
0.15 554 0.4 0.16 0.5 0.79
0.20 439 0.46 0.18 0.57 0.91
0.30 297 0.57 0.20 0.70 1.10
*Combined weighed average of all historical drill intercepts were calculated using COG 0.15% Cu
Table 3:
Deposits in the Las Bamba District
Resource Category Tonnes (MT) Cu (%) Au (ppm) Mo (ppm)
Constancia (Hudbay)1
Measured & Indicated
(Estimates inclusive of reserves) 881.6 0.25 0.033 77
Inferred
(Estimates inclusive of reserves) 54.1 0.24 0.018 43
Antapaccay (Glencore)2
Measured & Indicated 592 0.45 0.09 50
Inferred 157 0.40 0.10 50
Haquira (First Quantum)3
Measured & Indicated
(In pit) 560.936 0.485 0.033 100
Inferred
(In pit) 307.781 0.372 0.022 70
Las Bambas (MMG)4
Measured
(Ferrobamba Primary Cu) 546 0.6 0.05 204
Indicated
(Ferrobamba Primary Cu) 426 0.61 0.05 204
Inferred
(Ferrobamba Primary Cu) 252 0.63 0.05 169
Measured
(Chalcobamba Primary Cu) 75 0.44 0.02 148
Indicated
(Chalcobamba Primary Cu) 179 0.67 0.03 140
Inferred
(Chalcobamba Primary Cu) 33 0.54 0.03 142
Indicated
(Sulfobamba Primary Cu) 89 0.65 0.02 168
Inferred
(Sulfobamba Primary Cu) 106 0.56 0.02 118
Source:
1. Constancia – 2017 NI 43-101 Technical Report
(https://s1.q4cdn.com/305438552/files/doc_downloads/2018/ConstanciaTechReport_032918.pdf)
2. Antapaccay – 2018 Glencore - Resources & Reserves Report
(https://www.glencore.com/dam/jcr:ae4466b4-7ef4-4407-ae00-6ca55b694028/GLEN_2018_Resources_Reserves_Report-.pdf)
3. Haquira – 2010 NI 43-101 Technical Report
(https://secure.kaiserresearch.com/i/jk/tr16/TRANM20100902.pdf)
4. Las Bambas – 2018 Mineral Resources and Ore Reserves Statement
(http://www.mmg.com/en/our-
operations/~/media/Files/Investors%20and%20Media/2018/June%202018%20Mineral%20Resources%20Ore%20Reserves%20Statement.pdf)
Table 4:
Geophysical Exoskarn Analogue:
The encountered copper -gold mineralization hosted within exoskarn bodies at Fierrazo has provided a
clear and direct analogue for other areas of exoskarn mineralization, with a particular focus on Auryn’s
Chumpi target which has a 3.3 kilometer strike leng th (Figure 9). The geophysical responses that
characterize exoskarn mineralization at Fierrazo are as follows for oxide and hypogene mineralization
respectively: 1) Oxide mineralization is mapped in geophysics as a magnetic only response that is
characterized by a hematite -magnetite exoskarn with copper and iron oxides. 2) Hypogene
mineralization is mapped by geophysics as a coincident magnetic and conductivity response
characterized by magnetite exoskarn with copper and iron sulphides (Figures 3 – 5). The se same
responses are observed at the Chumpi target and provide Auryn’s technical team confidence that copper-
gold exoskarn mineralization may be encountered during Auryn’s initial drill program on the project. Note
that at the Chumpi target the entire se ction of both the Ferrobamba limestone and Upper Mara shales
and siltstones are interpreted to be preserved, giving a minimum of 300 meters of prospective stratigraphy
to drill test.
Average Grade of All Historical Drill Intercepts Based on Lithology
COG
% Cu Major Lithology Length (m) Cu (%) Au (g/t) CuEQ (%) AuEQ (g/t)
0.10 Intrusive equigranular 48.75 0.41 0.15 0.51 0.81
Intrusive porphyritic 23.9 0.48 0.05 0.51 0.81
Limestone 80.65 0.38 0.19 0.50 0.79
Sediment 571.65 0.30 0.13 0.39 0.61
0.15 Intrusive equigranular 48.15 0.46 0.17 0.57 0.90
Intrusive porphyritic 23.9 0.67 0.03 0.69 1.09
Limestone 66.25 0.45 0.22 0.59 0.93
Sediment 419.1 0.36 0.15 0.46 0.72
0.20 Intrusive equigranular 48.15 0.47 0.18 0.58 0.91
Intrusive porphyritic 21.5 0.74 0.03 0.76 1.20
Limestone 66.25 0.48 0.24 0.63 0.99
Sediment 302.5 0.44 0.18 0.55 0.88
0.30 Intrusive equigranular 48.15 0.49 0.19 0.61 0.97
Intrusive porphyritic 21.5 0.88 0.02 0.89 1.41
Limestone 60.85 0.56 0.30 0.75 1.19
Sediment 166 0.55 0.20 0.67 1.07
Update on Sombrero Targeting:
In conjunction with working the historical core from Fierrazo to aid in the larger targeting effort across the
property, Auryn focused on understanding the distribution of grade across the project from all surface
channel and grab samples. This analysis ha s focused on the three stages of mineralization recognized
on the project to date: 1) Prograde mineralization associated with the emplacement of the Ccasscabamba
diorite sill and the development of exoskarn and endoskarn mineralization, 2) Retrograde miner alization
associated with the emplacement of high -grade gold structures associated with chlorite and epidote
alteration and 3) Porphyry staged mineralization associated with the emplacement of monzonitic porphyry
dykes.
The spatial distribution and average grades associated with the three stages of copper -gold
mineralization are presented in Figure 10, where prograde exoskarn mineralization is situated along the
margins of the Ccasscabamba sill, and both retrograde and porphyry styles of mineralization are
contained in broad north – south structural corridors. Average grades of all surface sampling on the three
phases of mineralization are as follows: prograde exoskarn mineralization is 0.3% copper and 0.15g/t
gold, retrograde high-grade gold mineralization is 0.18% Cu and 0.74g/t gold, and porphyry style high -
grade copper mineralization is by 0.9% copper and 0.06g/t gold. Future drilling at the Sombrero project
will target areas where all three phases of mineralization converge spatially to focus on drilling high-grade
mineralization.
Figure 1: Illustrates the drill intercepts from the historical core at the Fierrazo exoskarn target. The drilling has defined a cohesive
mineralized body measuring 300 meters in length and approximately 150 – 225 meters in width and is open to both the north
and the south.
Figure 2: Illustrates the emplacement model of the Ccasscabamba diorite sill with exoskarn mineralization developed primarily
within the Ferrobamba limestone, the calcareous shales and siltstones of the Upper Mara Formation and as endoskarn
mineralization within the sill itself.