Overview and Highlights
The Curibaya property comprises of approximately 11,000 hectares, which includes the 2019 acquisitions of the Sambalay and Salvador concessions. The project covers the regional Incapuquio fault zone and subsidiary structures that are collectively interpreted as one of the fundamental controls for both epithermal and porphyry styles of mineralization within the region. Importantly the licenses host a number of cross structures to the Incapuquio fault zone that are considered highly prospective.
The Curibaya Project is located 53 km north-northeast of the provincial capital, Tacna, and is accessible by road in 2.5 hours. It is also 11 km south of the Incapuquio regional fault, which is viewed as a major control on the emplacement of mineralized porphyries in the region and is characterized by an Aster alteration anomaly (2 km by 3.3 km) that is similar in size to Southern Copper’s Toquepala deposit as well as Anglo American’s Chisispaya deposit.
For Curibaya-related news click here: Curibaya News Releases
Auryn undertook some initial exploration efforts consisting of a cyanide leach stream sediment survey that has identified a cluster of gold & copper anomalies in contiguous drainage basins within the SW portion of the claim block spanning an area of approximately 50 square kilometres. These anomalies are the first stage of developing Cu/Au porphyry and Au epithermal targets.
Mineralization within the Sambalay and Salvador concessions is hosted within the Toquepala volcanic sequence and the Gramadal limestone. Specifically, there are three defined zones of mineralization on the acquired concessions: Aqua del Milagro, Mina Tapial and Sambalay Chico. The Aqua del Milagro and Mina Tapial zones cover an area of 2 km by 1 km and 900 meters by 100 meters, respectively. They are both interpreted to represent a potential intermediate sulphidation system due to the presence of high-grade gold and silver samples, strong silica clay alteration and associated silica vein stockworks. Auryn’s technical team believes that the observed intermediate sulphidation style of mineralization provides an exploration target analogous to Buenaventura’s San Gabriel deposit (1.4 million gold ounces at 5.7 g/t measured and indicated and 0.8 million gold ounces at 4.6 g/t inferred)1.
Samples from the Aqua del Milagro zone contain a high gold-silver content, with values up to 14,180 g/t silver and 23.6 g/t gold. Samples from the Minas Tapial epithermal veins contain both high-grade gold-silver as well as copper, with values up to 15.1 g/t gold, 2,780 g/t silver and 13.5% copper.
The third defined zone of mineralization, Sambalay Chico, is situated along an east – west trending structural corridor parallel to the Incapuiqo regional fault. The high-grade copper mineralization extends over an 800-meter strike length and is hosted in three parallel breccia bodies that are between 1.5 meters and 8 meters in thickness. Samples from the breccia bodies have copper values up 10.85% and strongly demonstrate the potential for copper porphyry mineralization at depth.
Table 1: Historical rock samples from the Sambalay and Salvador concessions
Historical Rock Samples
|Agua del Milagro||Mina Tapial||Sambalay Chico|
|Au (g/t)||Ag (g/t)||Cu (%)||Au (g/t)||Ag (g/t)||Cu (%)||Au (g/t)||Ag (g/t)||Cu (%)|
Auryn acquired a 100% interest in the Curibaya concession in 2015 and the Sambalay and Salvador concessions in 2019. The Sambalaya and Salvador concessions are subject to certain historical NSR royalties.
Under the Mining Concessions Transfer Agreement (the “Transfer Agreement”) entered with Wild Acre Metals (Peru) S.A.C. dated August 2, 2019, the Company will pay US$250,000 for the transfer of the Sambalay and Salvador concessions, in favor of the Company, upon recording of the Transfer Agreement with the Peruvian Public Registry. The Sambalay concessions are subject to a 1.5% NSR royalty in favor of each of Teck Peru S.A.C. (“Teck”) and Compania de Exploraciones Orion S.A. (“Orion”). One third, or 0.5%, of the Teck NSR royalty is buyable for US$1.0 million. The Salvador concessions are subject to a 2% NSR royalty and a US$2.0 million production payment, payable at the time a production decision is made, and to secure payment of such consideration a legal mortgage in favor of Teck is recorded in the registry files of the Salvador concessions (Figure 4).
Cautionary Wording with Respect to the Mineral Interests
Auryn holds its interests in Peru through Corisur Peru SAC, which controls (among other) certain licenses (including the Huilacollo and Baños del Indio projects) that are located within a special legal zone which runs 50km back from the Peruvian border. As a non-Peruvian company, Auryn’s right to ultimately acquire title over the shares issued by Corisur Peru SAC and to own and/or exploit these licenses requires approval from the Peruvian government. While Auryn is in the process of submitting its applications with respect such the approval and does not currently foresee any legal reason why it would be denied the approval, some risk of denial or delay should be assumed to exist.