Mineral Explorer 'Getting Closer to the Source of Copper' at Ecuador Project

Recent drill results from two targets at Aurania Resources' Lost Cities-Cutucu project are reviewed in a Noble Capital Markets report.

In an Aug. 20 research note, Noble Capital Markets analyst Mark Reichman reported new drill results from Aurania Resources Ltd.'s (ARU:TSX.V; AUIAF:OTCQB) Tsenken N1 and Tiria-Shimpia targets at its Lost Cities-Cutucu project.

"The current drilling program appears to be providing management with a clearer view of the system encompassing Tsenken N1 and Tiria-Shimpia, along with its potential," wrote Reichman.

The analyst pointed out that Aurania thinks these two targets are part of the same system over 45 kilometers, in which primarily copper mineralization slowly transitions into mostly zinc mineralization.

At Tsenken N1, Reichman noted, drilling of six holes over 1,859 meters (1,859m) encountered sediment-hosted copper. Hole TSN1-007, now being drilled, already showed this same type of mineralization over 7 kilometers. The hole also indicated the presence salt, a feature typical of these mineralized systems.

"A fault system is thought to have fed copper into the sediments much in the way it did zinc-silver in the Tiria-Shimpia area," Reichman explained.

Regarding Tiria-Shimpia, Reichman relayed, Aurania completed two holes there, SH-001 and SH-002. SH-001 intersected faint silver-zinc mineralization in seven sedimentary layers. SH-002 results are pending. The Canadian explorer is currently drilling SH-003, which so far has reached a depth of 300m.

Reichman highlighted that given all results to date, Lost Cities is showing potential to encompass multiple beds of mineralization, much like the Europe's Kupferschiefer, one of the world's largest sediment-hosted accumulations of copper ores. In sediment-hosted layered copper systems, the mineralization generally comes from sections of oxidized sediments, called red beds, and volcanic rocks, and Aurania's management suspects the overall system present at Los Cities is mostly made up of red bed sediments. This is in part due to the numerous layers of sandstone present there.

Noble has an Outperform rating and a $3.75 per share target price on Aurania. Its stock is trading today at about $1.81 per share.

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