Aura Silver Discovers New Gold/Copper Targets at Dingo Prospect, Greyhound, Nunavut/Provides Update
OTTAWA, ONTARIO -- (Marketwire) -- 01/21/13 -- Aura Silver Resources Inc. (TSX VENTURE: AUU) ("Aura Silver" or the "Company") is pleased to announce that a high quality gold target referred to as the Dingo prospect and an adjacent copper prospect have been outlined through a comprehensive interpretation of geochemical data at its wholly-owned Greyhound property in Nunavut. These new discoveries add to the excellent potential of the property where previous results identified one gold and two silver targets located to the east and south-east of Aura Lake, as well as an untested silver target on the Greyhound north-east claims. These latest results complete Aura Silver's extensive geochemical interpretation where six drill-ready targets have been clearly identified along an Archean greenstone belt stretching over twenty five kilometres from the southwest to the northeast.
Robert Boaz CEO and President of Aura Silver states that, "During the past year, we have concentrated our efforts on isolating the sources of high grade surface samples of gold, silver and base metals at Greyhound. We now believe that Greyhound likely represents the most exciting exploration property for gold, silver, copper and zinc of any other property in Nunavut or for that matter likely northern Canada, especially given the high quality infrastructure currently in place. It is most unusual to explore this far north and to have such excellent logistics".
The Dingo Prospect lies 5.5 kilometres NNE of Greyhound's Aura Lake area and only thirty kilometres north of Baker Lake, NU with access via the all-weather road leading to Agnico Eagle's Meadowbank mine. The prospect is a discontinuous north-south striking quartz-vein system traced over 1.7 kilometres of strike at the margin of a major felsic sub-volcanic intrusion and mafic volcanics with a possible east-west trending shear zone structure; a classic gold environment. The vein system has been traced by outcrop and a discontinuous, but linear, gold-in soil anomaly with values in excess of 2,000 ppb Au. Sampling was conducted at 50 metre intervals along lines spaced at 100 metres. Grab samples from exposed outcrop assayed from trace up to 9.1 g/t Au and from trace up to 96.6 g/t Ag as reported in the table below.
A significant gossan development lies near the quartz-vein system near the south end of Dingo and bordering the east-west shear zone structure and measures 5 by 150 metres. Mineralization consists of pyrite, chalcopyrite and trace arsenopyrite as a sulfide vein stringer zone. Precious metals associated with this copper stringer zone are low but one sample reported a copper value of greater than 10,000 ppm (greater than 1% Cu). However, the Company speculates that this zone may be associated genetically with the high grade surface samples transported to the north end of Aura Lake which assayed 9.2% copper and 18.5% zinc.
Dingo Prospect Grab Samples
SAMPLE NUMBER GOLD SILVER
(g/t) (g/t)
AA03 9.1 4.6
G0650994 7.4 96.6
98-AA-04 7.2 10.2
JS11-43 1.2 20.8
JS-11-44 (copper zone) 0.9 47.6
JS-11-45 (ext. of copper zone) 0.1 2.8
JS11-46 0.8 9.8
G0650994 0.1 9.6
Note: All samples were assayed by fire assay by Actlabs, an accredited assay
laboratory, being one of the first labs in the world to achieve ISO 17025
accreditation as well as CAN-P-1579 (Mineral Lab) and CAN-P-1578 (forensic
lab) accreditations.
New interpretation of the Dingo soil results is the product of Activation Laboratories Ltd. (Actlabs) deep-penetrating organic geochemistry analysis which has been used in two other studies at Greyhound. Spatiotemporal Geochemical Hydrocarbon (SGH) analyses (see description below) has identified gold and silver targets across the Greyhound property that are rated in excess of 5 out of a maximum 6 in terms of quality and probability of occurrence by the Actlabs rating system. The Dingo prospect was first press released in September 2010, noting the high grade gold values and copper mineralization. The SGH data illustrates two distinct and separate anomalous zones associated with a possible east-west trending shear zone structure suggesting an association of shear hosted vein-gold. The apical anomaly indicated at the northern edge of the Dingo survey implies a ridge anomaly and represents the vertical projection of possible gold mineralization with an interpretation of a shallow source of less than 50 metres. Rating of the apical anomaly mineralization plot is 5.0 out of 6.0, a significant and important top rating Actlabs suggested that the rating could be a maximum rating of 6 if additional samples to the north were available. Unfortunately, the soil sampling ended at the point of disappearance of the quartz veining under thick till cover.
Two copper anomalies were located; one deep and at the southern end of the survey area but west of the gold quartz vein system; and, one shallow, both associated with the surface gossan and sulphides stringer zones. An interpretative rating of 5.5 out of 6.0 was assigned to this prospect by Actlabs. Aura Silver's geologists believe the two anomalies are likely one mineralized zone with one seen near surface and the other to depth.
The map "South West Greyhound Property Showing Aura Lake and Dingo Prospects" (available at http://media3.marketwire.com/docs/Aura_Silver_map_0121.pdf or at www.aurasilver.com under 'News') shows the proximity of the Dingo prospect to our original discoveries around Aura Lake with the all-weather Meadowbank road separating these two major zones.
Spatiotemporal Geochemical Hydrocarbon (SGH) Analytical Method - An Explanation
SGH is the only known organic geochemistry tool that uses non-gaseous semi-volatile organic compounds interpreted using a forensic signature approach. SGH is a deep penetrating geochemistry that involves the analysis of surficial samples from directly over potential mineral or petroleum targets. SGH analysis incorporates a very weak leach, essentially aqueous, that only extracts the surficial bound hydrocarbon compounds and those compounds in interstitial spaces around the sample particles. It should not be confused with other hydrocarbon tests of traditional analyses that measure C1 (methane) to C5 (pentane) or other gases.
Actlabs has continued to successfully develop, refine, and implement their organic Spatiotemporal Geochemical Hydrocarbon analysis which detects the organic decomposition products from bacteria and microbes that feed directly on mineral or petroleum targets and which provide a forensic signature identifying the target buried at depth of as much as 1,000 metres. The analysis involves the testing for 162 hydrocarbon compounds in the C5-C17 carbon series range in a wide variety of sample types. Actlabs' SGH analysis has experienced a high success rate in the past with over 900 exploration targets interpreted for a range of major mining companies and junior explorers in both the mining and petroleum industries. Past research projects have attracted sponsors such as Western Mining Corporation, BHP-Billiton, Inco, Noranda, Outokumpu, Xstrata, Cameco, Cominco, Rio Algom, Alberta Geological Survey, Manitoba Geological Survey, and OMET. In fact Actlab's SGH analysis has been described as a "REDOX cell locator" by the Ontario Geological Survey which is crucial in determining mineralization location.
Company Update
Aura Silver is in ongoing discussions with strategic partners focused on both of our properties in Mexico and Nunavut which have the potential to add value for shareholders.
Robert Boaz states, "Difficult market conditions have led us to seek out partners who can provide sufficient capital to make further progress on our Taviche/Alma Delia property in Mexico as well as our Greyhound property in Nunavut. We anticipate that further updates will become available over the course of the next few months."
Paul Pitman, P. Geo. is Aura Silver's qualified person (as defined by National Instrument 43-101) and has reviewed and approved the scientific and technical information in this press release.
About Aura Silver
Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (100% owned Greyhound project) and in Oaxaca, Mexico. Aura Silver has 101,680,844 common shares outstanding.
Aura Silver's web site is located at www.aurasilver.com
FORWARD-LOOKING STATEMENTS:
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Robert Boaz
President and CEO
(905) 403-8010
boaz@aurasilver.com
www.aurasilver.com