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Auryn Resources receives environmental permit for Sombrero copper-gold project in Peru

It means the firm can drill up to 33 holes on the Ccascabamba Sombrero Main target area

Auryn Resources Inc -
The main exploration targets at Sombrero are copper-gold skarn and porphyry systems and precious metal epithermal deposits

Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) has moved a step closer to drilling at its flagship Sombrero copper-gold project in Peru, with the receipt of a government environmental permit. 

The Declaración de Impacto Ambiental (DIA) covers an area of 1,031 hectares and means the firm can drill up to 33 holes on the Ccascabamba Sombrero Main target area, where Auryn has completed the majority of its work so far. 

READ: Auryn Resources brings in C$10.1M from previously announced placing

"We view the Sombrero district as a tier-1 exploration opportunity due to its size, the strength of mineralization on surface and the positive historical drilling results at the Fierrazo target," said Ivan Bebek in a statement. 

"We have demonstrated that Sombrero is the western extension of the Andahuaylas-Yauri belt, and we believe that we may discover multiple world-class deposits within our land package."

Bebek said the firm's initial program will test the first of four significant mineralized centers identified to date.

He also highlighted that the environmental permit was received less than seven months from the start of the application. The next step in the process requires obtaining the authorization for Inicio de Actividades (start of activities), which was filed with the authorities last week.

Included here is the Consulta Previa (social consultation), which will be the government authority's confirmation that the community supports the upcoming drill program, as well as future exploration.

More than 130,000 hectares

Sombrero comprises the North Sombrero and the South Sombrero properties, spanning over 130,000 hectares, which are owned or optioned by Auryn.

Last week, Auryn revealed it had raised C$10.1 million following the closing of a previously announced placing, to fund the continued surface exploration at its Sombrero and Curibaya projects in southern Peru and for general working capital.

As well as closing the offering, the group also completed its amendment to its September 2019 bridge loan.

Shares ticked up 1.62% to stand at C$1.88 each.

Contact the author at [email protected]

Quick facts: Auryn Resources Inc

Price: 1.76 CAD

Market: TSX
Market Cap: $184.24 m

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