AUIAF - Aurania Resources (AUIAF)(ARU:CA) - Drilling Underway at Kuri-Yawi Target; Recent Financings Enhance Financial Flexibility
Fully funded for remainder of 2021. Aurania Resources recently completed two financings, including a brokered equity issuance of 2,507,000 common shares for gross proceeds of C$7,771,700 and a private placement of 403,750 common shares for gross proceeds of C$1,250,000. Following the financings, the company had 46,843,388 shares outstanding by our estimate. Based on our forecasted expenditures, the company is fully funded for the remainder of the year.Drilling Underway at Kuri-Yawi epithermal target. Diamond drilling is underway at the Kuri-Yawi target and is testing an epithermal target and a deeper porphyry target down to potentially 1,000 meters. Recall that Aurania’s Mobile MT geophysical survey clearly defined a feature thought to be the sulphide-bearing core of a porphyry at the Yawi target. Epithermal veins were encountered about 100 meters below surface and contained the presence of pyrobitumen which has been associated with gold systems. The target at depth is a strong conductor, which may be a sulphide zone. Porphyry deposits, while low in grade, are the largest source of copper ore and can be important sources of gold.Drilling expected to accelerate. To date, three targets have been drilled. The company is currently working on the fourth and fifth targets, Tsenken N1 and Kuri-Yawi. Tsenken N1 is a copper-silver target, while Kuri-Yawi is an epithermal gold-silver and copper porphyry target. Upcoming drill targets include the Tsenken West copper-silver and Tiria-Shimpia silver-zinc targets. We think the company could deploy an additional drill to accelerate progress. Rating is Outperform. Aurania’s exploration program has yielded a plethora of drilling targets for a variety of metals and the potential to make multiple discoveries in its large concession package. In our view, the company has reached a stage where the outcomes of its efforts may start to become more readily apparent to the market.Read More >>