Aura Silver Extends Gold Corridor and Discovers New Base Metal Target, Greyhound Nunavut
OTTAWA, ONTARIO -- (Marketwire) -- 08/20/10 -- Aura Silver Resources Inc. (TSX VENTURE: AUU) ('Aura Silver' or the 'Company') announces preliminary results of drilling and prospecting on its Greyhound (Nunavut) property.
With a combination of drilling and ongoing prospecting, the Company has determined that the area surrounding Aura Lake is highly prospective for gold mineralization. Surface samples recently collected indicate that there is at least a 500 meter long zone extending south from the original gold showing (which contains 28 grams per tonne) that contains similar-style alteration and sulfide content to the south of Aura Lake. Furthermore, 2 kilometers to the north, at the north end of Aura Lake, hole G-10-16 intersected 39 meters of green carbonate containing disseminated sulphides, including traces of arsenopyrite and chalcopyrite. This appears to be typical of a Kirkland Lake style mineralization. In all, this potential gold zone appears to be pervasive over an area of several square kilometers. Assays are pending.
Aura Silver's 2010 drill program was established primarily to examine a large number of geophysical targets identified in its VTEM (2009) and earlier GEOTEM (2007) and MEGATEM (2006) surveys, using shallow (100-125 meter) drill holes. The initial results of this drilling program discovered that many of the targets in the Aura Lake area (west central part of the property) are graphitic shale. However, preliminary assay data for Hole G-10-04, drilled under the original discovery of gold-rich float material on the southeast shore of Aura Lake, includes an interval of over 18 meters of anomalous gold (up to 3.6 g/t over 0.59 meters). Additional assays are expected for this hole. Gold in this area has a close spatial and geochemical association with arsenopyrite (in Hole G-10-04, the Au-As correlation coefficient is 0.97) as it does in other gold camps. After reviewing the data from surface samples taken in 2008 and 2007, as well as our most recent drilling, this relationship is proving to be a consistent guide to gold-enriched zones.
New prospecting in the area of Hole G-10-04 has revealed numerous additional arsenopyrite occurrences (assays pending) and as a result, Hole G-10-14 was drilled approximately 75 meters south of Hole G-10-04 to test for additional gold potential. Arsenopyrite was also identified in this hole and assays are pending. The next stage of our program will focus on drilling deeper in this area (200 to 300 meters) to determine if grades increase at depth. In addition, prospecting of the iron formation up to 2.5 km south of the initial discovery has revealed sulfide-rich replacement and intense carbonatization, adding to the potential for discovery in that area.
Dr. James Franklin (Aura Silver's Qualified Person) states that there are several additional key indicators of high grade gold potential that have been discovered in our new surface sampling and drill data, in addition to the arsenopyrite relationship.
1. The gold zones occur in strongly silicified and sericite-altered rocks
associated with structural discontinuities.
2. There is a close spatial relationship with quartz-feldspar porphyry
intrusions which contain abundant disseminated sulfides, similar to
porphyry bodies in the Timmins and Geraldton camps, for example.
3. The strata associated with the gold-enriched areas are strongly sodium
enriched, forming albitite alteration; this type of alteration has a
close spatial relationship to gold in the Timmins and Val D'Or areas,
including Dome Mine.
4. All rock types in the area of the gold occurrences are strongly
carbonatized, especially the ultramafic rocks which have been converted
to 'green carbonate'. This latter rock type hosts ore at many mines in
Canada and Australia, including the famed Kerr Addison Mine.
5. The Company mapped a major alkaline dyke that seems to transect the
gold-enriched area, and occupies a major highly schistose fault
structure.
6. The area contains abundant iron formation, some of which has already
been reported to host gold occurrences similar to that at the nearby
Meadowbank Mine (approximately 35 km north of Greyhound).
7. The volcanic assemblage is bounded by a transpressive reverse fault, the
type most commonly associated with the most productive districts in
Canada and Australia.
New Base Metal Target
Aura Silver has also re-evaluated the potential for volcanogenic massive sulfide (VMS) mineralization in the area based on additional mapping and its drill results. The previously announced surface samples from north of Aura Lake contain up to 9.2% copper, and 18.5% zinc, which have mineralogical and textural attributes similar to those from high-temperature VMS deposits. Our present drilling program has shown that these did not come from south of the occurrence but further mapping suggests an eastern source. This latter area was poorly prospected in prior field programs, but research of government files reveals a 'high grade copper-zinc' occurrence in that area. Our mapping reveals an extensive approx.2 km-long unit of highly altered sodium-depleted felsic volcanic rock in the area of this showing. This area has not been adequately examined by geophysical surveys but is clearly prospective for VMS occurrences.
Aura Silver plans to complete the current drilling program over the next week, and undertake soil sampling and IP geophysical surveys in these two most prospective areas. These will form the basis for additional drilling either later in the fall (weather depending), or in the spring of 2011. The Company expects to report assay results once they are received in the next few weeks.
Dr. James M. Franklin, 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. Core samples collected by Aura Silver have been analyzed by ALS Chemex in Vancouver and Yellowknife, Canada for multi element geochemical analyses by ICP-MS (48 element or extended whole-rock package) and gold by fire assay and FA-AA finish (greater than 0.005 g/t).
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 59,102,402 common shares outstanding.
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:
Aura Silver Resources Inc.
Robert Boaz
President and CEO
905-403-8010
boaz@aurasilver.com
www.aurasilver.com