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Auryn soars on Sombrero potential

Auryn Resources (TSX: AUG) shares have hit a one-year high as enthusiasm builds over potential at the Sombrero copper-gold project in Peru.
Auryn soars on Sombrero potential Auryn soars on Sombrero potential Auryn soars on Sombrero potential Auryn soars on Sombrero potential Auryn soars on Sombrero potential

Auryn sees blue sky at Sombrero in Peru

Staff reporter

The Goldcorp-backed company said last week continuous channel sampling at the Fierrazo target had increased the previously reported 184m at 0.57% copper-equivalent mineralisation to 232m at 0.55% Cu-eq.

It also had a higher-grade internal interval of 40m at 1.26% Cu-eq, Auryn said.

"We believe the high-grade mineralisation observed on surface is characteristic of the extensive exoskarn targets beneath the thin cover sequence at the project, demonstrating the potential for a scalable high-grade discovery," COO and chief geologist Michael Henrichsen said at the time.

The company closed an increased private placement last month, originally designed to raise C$3.5 million (US$2.6 million) at C$1.60 per share, garnering $5.2 million (US$3.9 million) for exploration at Sombrero and general working capital.

Auryn enlarged its Sombrero project area through staking last year and can earn 80% to 100% of certain concessions under three separate option agreements.

Goldcorp has invested $38 million (US$28.5 million) to date, according to an April presentation, and holds 11.8% of the explorer.

Auryn is also progressing its Committee Bay gold project in Nunavut.

Its shares have been on the rise since a December low of $1.14, touching a one-year high of $2.27 yesterday.

They closed up 9.76% to $2.25 to capitalise it at $212.6 million.