Aurelian intersects long zones in FDN drilling

Another wide swath of high-grade gold from the Condor project in southeastern Ecuador sent shares in Aurelian Resources (ARU-V) as much $4.97, or 70%, higher to $12 in late-morning trading in Toronto on June 2.

Hole no. 56 targeted the Fruta Del Norte epithermal gold-silver discovery and yielded 204.8 metres running an uncut 8.4 grams gold and 8.5 grams silver per tonne, beginning 220.2 metres down hole. The interval includes a 79.1-metres section (from 2446 m) of 16.15 grams gold and 10.8 grams silver. A 31.8-metres section lower in the hole contained 1.18 gram gold and 14.7 grams silver.

When the hole’s high-grades are cut to 31.1 grams, the 204.8 metres average 6.92 grams gold.

Other highlights from the latest batch of four holes include:

• hole no. 53 — 52.2 metres (from 335.5 m) grading 1.04 grams gold and 3.6 grams silver;
• hole no. 54 — 27 metres (from 356 m) of 2.41 grams gold and 1.3 grams silver, and 86 metres (from 407.6 m) of 3.2 grams gold and 2.9 grams silver, including 27.4 metres of 6.31 grams gold and 3.2 grams silver; and
• hole 55 2 metres (from 442.3 m) of 1.31 grams gold and 4.2 grams silver.

So far, drilling has traced the low- to intermediate-sulphidation epithermal gold-silver system along some 300 metres of strike length. The zone remains open to the north, south and west; it strengthens to the north and west.

In April, the first four holes of the ongoing drill program delivered a 237.25-metre section (from 192.45 m) running 4.14 grams gold and 8.5 grams silver per tonne, in hole no. 51. That interval included a 22.1-metre stretch at 15.58 grams gold and 6.1 grams silver.

Hole no. 52, about 90 metres away yielded 60.25 metres (from 279.9 metres) averaging 3.42 grams gold and 3.3 grams silver, including 39.5 metres of 4.35 grams gold and 3.8 grams silver.

The holes were designed to test at depth a zone of epithermal quartz replacement in conglomerate found in outcrop. The conglomerate is interpreted as infill of a large (2km by 7km) pull-apart basin. Aurelian’s property covers nearly the entire basin.

Another nearby hole, no. 50 yielded lower grades over smaller intervals. Similarly, hole no. 49, which tested a strong induced-polarization anomaly originally thought to be the northern extent of the system returned lower grades.

Multiphase stockwork veining and hydrothermal brecciation within intensely silicified andesitic volcanics characterize the FDN target. Drilling has cut veins measuring up to 6.05 metres in down hole length. Visible gold is found in larger veins, stockwork veinlets, in breccias as fine-grained disseminations, and as fine seams and larger pieces (up to 5 mm) in veins. Hole 56 yielded 18 occurrences of visible gold over a 100-metre interval.

All of the recent drilling is collared around 1km north of the Bonza-Las Penas (B-LP) epithermal gold-silver deposit. Aurelian believes the results represent a northern extension of that system, which has been mapped for more than 3km. The area between FND and B-LP has yet to be drilled.

Bonza-Las Penas is home to inferred resources totalling 15 million tonnes grading 1.1 grams gold and 11.6 grams silver per tonne, based on a gold-equivalent cutoff grade of 0.75 gram, a gold price of US$400 per oz., and US$7 per oz. of silver. The estimate also employs an estimated gold recovery of 90%, and silver recovery of 70%.

The resource stretches along 800 metres of strike within a gold-in-soil anomaly measuring more than 2 km. The zone varies in width from 25 metres to 80 metres, with the resource blocks typically no deeper than 250 metres. The B-LP deposit represents an epithermal gold-silver system hosted by a north-south striking, brittle fault zone that dips gently to the west

Assay results are pending for another four holes at FDN, all of which contain visible. Two drill rigs continue to step out to the north at 100-metre intervals. A series of scissor holes are also planned to determine the system’s true width.

Aurelian adopted a shareholder rights plan in late May.

The plan will be put to a shareholder vote scheduled for June 21. It also requires acceptance by the TSX Venture Exchange.