Auryn Resources Inc (TSE:AUG) (NYSE:AUG) is expanding its land package in Peru with the acquisition of two new concessions adjacent to the company’s Curibaya property.
The Sambalay and Salvador concessions are located in the southern part of the country, 53 kilometres north of the provincial capital of Tacna and are accessible by road.
In total, the Vancouver-based exploration company has acquired a land package of 4,700 hectares that together represent a 2 kilometre by 3.3 kilometre mineralized system that Auryn believes holds potential for high-grade copper and precious metals.
Historical sampling programs on the properties returned results of up to 13.5% copper, 23.6 grams per ton gold and 14,180 grams per ton silver.
The company’s Curibaya project is located on a mineralized trend that is home to some of Peru’s major porphyry deposits owned by major miners such as Freeport McMoRan, Southern Copper and Anglo American.
In a statement, executive chairman Ivan Bebek said that Auryn has been interested in the claims since it first acquired the Curibaya property in 2016 due to its highly prospective location and the mineralization identified to date.
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Currently, there are three defined mineralization zones within the Sambalay and Salvador concessions. The Aqua del Milagro and Mina Tapial zones show geological prospectivity for a potential intermediate sulphidation system thanks to the presence of high-grade gold and silver samples and associated alterations.
The third mineralized zone shows high-grade copper mineralization that extends over an 800-metre strike length. Sampling on the property returned grades of up to 10.9% copper.
Michael Henrichson, Auryn’s COO and chief geologist said the company was “pleased” it was able to consolidate the Curibaya land position with the acquisition of the new concessions.
“The abundance of high-grade copper, gold and silver in one of Peru’s most endowed mineralized belts represents another excellent opportunity for us to make a major discovery in Peru,” he said in the statement.
“We look forward to rapidly advancing the project to drill stage through systematic surface exploration and an airborne VTEM geophysical survey across the multiple mineralized centers.”
Deal terms
Under the terms of the deal, Auryn acquired the new land package from Wild Acre Metals (Peru) SAC for US$250,000. Sambalay is subject to a 1.5% NSR royalty in favour of Teck Peru SAC and Compania de Exploraciones Orion SA. One-third of Teck’s royalty, or 0.5%, is available to purchase for US$1 million.
Teck also has a 2% NSR royalty and a US$2 million production payment on the Salvador concession.
Auryn Resources has a portfolio of projects across the Americas. It is currently drilling at the Committee Bay project in Nunavut.
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