The program, which began on August 7, 2018, consists of approximately 3,000 metres of core drilling. The aim is to expand the known resource at the high-grade South Reef deposit, by targeting the down-plunge extension along the bottom of a graben, which defines the mineralized structure.
The drill program will test 500 metres of strike extensions along a 1-km gold-in-soils anomaly, targeting multiple mineralized structures within the graben.
Homestake Ridge covers approximately 7,500 hectares within the Iskut-Stewart-Kitsault belt in northwestern B.C. To date, more than 275 holes, totaling over 90,000 metres have been completed on the property and multiple exploration targets remain to be tested.
Homestake Ridge contains an indicated resource of 125,000 ounces, grading 6.25 g/t gold, and 1 million ounces of 47.9 g/t silver. On top of that is an inferred resource of 932,000 ounces, grading 4 g/t gold, and 21.2 million ounces, grading 90.0 g/t silver.
“The high-grade resource at the Homestake Ridge project has an exceptional opportunity for expansion along the South Reef mineralized corridor,” said Auryn Chief Geologist Michael Henrichsen. “Geolgical modelling based on the 2017 drill campaign has identified a well-defined graben system that is open to the northwest and will be targeted with six to eight drill holes.”
Auryn is focused on scalable high-grade gold deposits in established mining jurisdictions, which include the Committee Bay and Gibson MacQuoid projects in Nunavut, the Homestake Ridge Project and a portfolio of projects in southern Peru.
The Peruvian portfolio includes rights to the Huilacollo and Curibaya properties in Tacna province, which together cover 38,500 hectares within the prolific Pliocene gold silver epithermal and Micocene copper gold porphyry belts respectively.
The company also has the option to acquire the 4,600-hectare copper-gold Sombrero property mining concessions located 340 km southeast of Lima.
On August 16, 2018, the company said it had raised $7.3 million from a non-brokered flow-through private placement of 2.1 million flow-through common shares at $1.60 per share, and approximately2.2 million charity flow-through shares priced at an average of $1.80.
On Friday, Auryn shares rose 1.49% or $0.02 to $1.36. The shares trade in a 52-week range of $3.45 and $1.26.
Goldcorp Inc. [G-TSX; GG-NYSE] maintained its 12.4% interest in Auryn by acquiring 490,000 common shares from the purchasers of the purchasers of the charity flow-through shares.
Meanwhile, the company released an update Friday on its Committee Bay Project, saying 7,200 metres of a 10,000-metre program have been completed. The program is expected to be finished by August 25, 2018, the company said, adding that results are anticipated between mid-September and the end of October.