January 22, 2015 @ 14:22
AURYN Mining Chile SpA is pleased to provide an update on the major expansion of the exploration program being conducted in the Altos de Lipangue area located approximately 30 kilometers northwest of Santiago, Chile. Since the last announcement on December 23, 2014 the property position has been increased by the addition of the NUOCO properties (Las Dos Marias and Mambo/ Colombo claims) totaling in excess of 2000 hectares.
There also have been positive developments in the acquisition of the past producing Fortuna de Lampa property. In light of these new developments, the Company has decided to temporarily suspend drilling in order to evaluate and prioritize targets to be tested by drilling in 2015. Complementary to the fast tracking of prioritizing the known targets, there will be an increased emphasis on evaluating the regional exploration potential and an assessment of the economic significance of existing tailings and mine dumps in the area.
As a first step in accelerating the regional evaluation, a contract has been finalized with GEODATOS Ltda. to complete an airborne (helicopter) high resolution magnetometer survey to cover the Altos de Lipangue area. Lines will be flown at a 200 meter separation in a north-south direction over an area of 15 kilometers (N-S) by 13.5 kilometers (E-W). A total of 1274 kilometers will be flown including the control tie-lines. The survey is scheduled to begin as soon as possible and will take approximately 20 days to complete depending upon the weather conditions. Results of the survey should be available in early March. In addition to the important regional information, the survey may identify specific targets, especially those based on the metasomatic magnetite-chalcopyrite model that has been identified in the area of the Iron Hat showing to the north of the Fortuna mine.
Subsequent to the December 23rd announcement, drill hole L14-23 has been completed and assays are available for it as well as previously completed hole L14-22A. Sections for both holes with their significant assays are attached to this announcement.
In general, hole L14-22A had zones of anomalous copper associated with the most intense alteration, veining and pyritization that was reported in the log. The most significant zones were: 1) an interval at 469.55 – 474.0 meters with 4.45 meters of 0.1 g/t Au and 0.17% Cu including 1.0 meter of 0.97 g/t Au, 32 g/t Ag and 0.68% Cu that would correspond to the down dip extension of the breccia zone; and 2) an interval of 4.0 meters at 577 – 581 meters of 594 ppm Cu that occurs within a zone of increasing albitization and pyritization that starts at about 570 meters and terminates at a fault at 603 meters. Post mineral faulting in the hole has severely complicated the interpretation of the geology but the extensive occurrence of orthoclase veinlets with varying amounts of quartz and pyrite are potential indicators that the hole is distal to a porphyry system.
Hole L14-23 was drilled 50 meters south of L99-09 and 50 meters west of hole L00-11. Within the breccia zone the most significant values were in the interval 171 – 193 meters that ran 0.61 g/t Au over 22 meters and included 3.0 meters (171 – 174 meters) at 1.51 g/t Au, 4.7 g/t Ag and 0.61% Cu as well as 1.0 meter interval (188 – 189 meters) of 4.1 g/t Au. The hole shows that the Gordon Breccia continues to the west and persists to depth. Additional drilling is warranted to identify areas of higher grade Au-Cu near the andesite contact.
The samples from L14-22A and L14-23 were obtained by sawing the core and bagging one half for delivery to the Andes Analytical Assay laboratory in Santiago-Chile. The assaying procedure included ICP determination of the values for 33 elements plus Fire Assay to determine the values for gold. Standards, blanks and duplicates were routinely added to ensure compliance with Q/QC protocols.
This release was prepared and approved by David Bent, Exploration Manager for AURYN Mining Chile SpA who is a registered P. Geo (Nova Scotia) as well as a member of the Colegio de Ingenieros del Peru.