September 17, 2015 @ 08:16
AURYN Mining Chile SpA (“AURYN” or “the Company”) today reports recent exploration activities being conducted under the terms of its Option Agreements with Medinah Mining Chile, CDCH and Nuoco. Of particular note are the extraordinary gold assays returned from the Merlin 1 vein, the first vein to be trenched, samples and assayed of five (5) parallel veins that outcrop to surface.
AURYN has focused its efforts on the Merlin Au-Cu±Ag high grade gold veins. Using a team of three (3) geologists and three (3) assistants, they have conducted geological mapping on the property on a 1:10,000 scale representing approximately 15% of the concessions. Over 1.5 km of trenching and over 200 samples of the 25 trenches and adits has been completed to expose the high grade gold in quartz veins that outcrop to surface. Gold assays have returned grades up to 66.5g/t gold with a weighted average of 26.9g/t gold on a diluted basis over widths of ~1.35 meter, adding high anomalies in Cu, Pb and Zn. These grades are better than expected. Currently the Merlin 2 vein is being mapped and trenches dug on 50 to 80 m intervals.
Drilling will start the second week of October, 2015. The goal is to prioritize the best exploitation targets.
AURYN has done extensive due diligence on the ADL plateau mining claims, including the ones related to Nuoco, MMC and CDCH. AURYN has added 3,400 hectares bringing the total contiguous land package to 10,500 h.
AURYN staff continues to work on geological interpretations, map renderings and digitizing assays and other data. Further, AURYN has retained the services of an independent Qualified Person (QP) to audit all of the work completed to date.
AURYN is about to commence an Environmental Management Plan of the entire property by a consulting group. This study will ascertain the state of the property now in the areas of aquatics, flora and fauna, hydrogeology, air quality, water quality, and geochemistry (acid rock drainage and metal leaching prediction). These specialists will provide timely input for AURYN to protect the environment while enhancing the efficiency of the project permitting process, yet to be initiated.
Further, on July 6th a contract to acquire 230 million common shares of Medinah Minerals, Inc. was signed between five (5) parties in a private share deal. As of today, 60 million shares have been delivered to AURYN and its associates and the balance of 170 million shares is pending delivery. This transaction exceeds the original intention to acquire up to 100 million shares discussed with Medinah management last year.
AURYN has spent over US$4.8 million to date within the JV partnership.
Sample Preparation and Quality Control
Supervision and organization of trench grab samples was undertaken by AURYN personnel. Samples were collected in channel sampling method with a minimum 0.30 m and maximum 1 m interval depending on veins and host rock mineralization, and 2 m samples are collected in intervals with no evident mineralization or alteration. Then samples are placed in cloth bags by employees of AURYN under the supervision of Luciano Bocanegra, Pablo Oliva Vicentelo and Mario Arancibia, project geologists. Samples were catalogued by AURYN geologists and stored in a secure location. Blank and standard material was also inserted at random intervals.
Assays are delivered to the Andes Analytical Assay laboratory in Santiago Chile. The assaying procedure includes ICP determination of the values for 33 elements plus Fire Assay to determine the values for gold. Standards, blanks and duplicates are routinely added to ensure compliance with QA/QC protocols.
Submitted on Behalf of the Board of Directors
AURYN Mining Chile SpA