AUIAF - Aurania Resources (AUIAF)(ARU:CA) - Hole 3 Delivers at Tiria-Shimpia
Encouraging Tiria-Shimpia drill results. The third hole drilled on the Tiria-Shimpia silver-zinc target intersected the top of a targeted layer of brecciated limestone at a depth of 35 meters. Mineralization was revealed over 29 meters at a grade of 3.5 grams of silver per tonne and 0.6% zinc, including a 5-meter interval at a grade of 10.5 grams of silver per tonne and 2.5% zinc. The goal is to identify the higher-grade parts of the system within the 22-kilometer-long trend defined by metal enrichment in soil. Soil geochemistry and Mobile MT data are being used to refine the target for higher-grade mineralization. Hole 3 was drilled approximately 2 kilometers to the north of where holes SH-001 and SH-002 were drilled. A total of 1,018 meters has been drilled in the three holes completed at Tiria-Shimpia.Eighth hole being drilled at Tsenken N1. Hole TSN1-007 at the Tsenken N1 sediment-hosted copper-silver target has been completed and drilling at Hole TSN1-008 has been started. We think management intends to complete 10 drill holes at Tsenken N1.Private placement equity financing. Earlier this month, Aurania’s board approved a non-brokered private placement of up to 2,083,334 units at C$2.40 per unit for gross proceeds of up to C$5 million to further fund its exploration and drilling activities. While the shares recently dipped to close below the offer price on September 27, each unit is comprised of one common share and a half warrant, with each whole warrant exercisable into one common share for C$3.00 for a period of 24 months after closing which may occur in one or more tranches. The shares have traded well above C$3.00 per unit and the warrants may be viewed as a call on successful outcomes resulting from Aurania's exploration and drilling program.Rating is Outperform. Aurania’s exploration program is providing an abundance of drilling targets for a variety of metals and the potential to make multiple discoveries in its large concession package. The company's four priority targets are Tsenken, Tiria-Shimpia, Tatasham, and Latorre C. In the near-term, we think Aurania will continue to operate two drill rigs and maintain some flexibility in terms of the drilling sequence. Read More >>