Peru Portfolio

Overview and Highlights

Auryn Resources has acquired the rights to the Huilacollo and Curibaya properties in the Tacna province of Southern Peru. Together these projects encompass a total of 38,500 hectares within the prolific Pliocene Au/Ag epithermal and Miocene Cu/Au porphyry belts respectively. The epithermal belt in this region of Peru is host to four multi-million ounce gold discoveries since the year 2000 and the porphyry belt is host to four of the largest porphyry deposits in Peru.

The company has also entered into an option agreement to acquire the 4,600 hectare, copper-gold Sombrero property mining concessions located 340 kilometers SE of Lima in southern Peru.


The Huilacollo epithermal property is comprised of 2,000 hectares of intense hydrothermal alteration that is consistent with epithermal Au/Ag mineralization over a 4 by 6 km area. Historical drilling has outlined a mineralized zone that is open for expansion along a 4km north-south trending corridor. Table 1 below highlights historical intercepts:

Table 1:

Huilacollo selected intercepts

Hole_ID From To Interval Au g/t Ag g/t Au g/t*meters
AM-14 0 82.5 82.5 1.16 6.5 95.6
AM-13 0 62 62 0.94 12.1 58.1
AM-13 128 146 18 1.04 4.3 18.7
AM-06 0 88 88 1.05 9.0 92.1
AM-16 0 82 82 0.99 18.5 80.9
AM-01 0 80 80 1.29 11.8 103.2
AM-02 0 50.65 50.65 1.24 9.3 63.0
HU-3 5.45 39.45 34 2.14 22.1 72.9

Intercepts were calculated using a minimum of a 0.2 g/t Au cut off at beginning and end of the intercept and allowing for no more than four meters of less than 0.2 g/t Au. True widths of the reported intercepts are believed to be approximately 60% of the drilled widths.

Higher grade zones within the mineralized zone appear to be focused along well defined feeder structures as highlighted by trench intercepts up to 38m at 6.7g/t Au and drill holes including 34m @ 2.14g/t. Importantly, the mineralization as currently defined, represents less than 10% of the area of first order geophysical targets defined by overlapping high resistivity and low chargeability zones that represent the potential for oxide gold mineralization within silica bodies. Initial exploration work will focus on rapidly establishing drill targets through structural mapping, trenching, volumetric sampling, and multi-spectral analysis with an initial drill program planned for the fourth quarter of 2016.

The Huilacollo property has excellent infrastructure with access by road, nearby high voltage power lines and water.

The Company acquired the rights to the Huilacollo property through an option agreement with a local Peruvian company, Inversiones Sol S.A.C. (the “Huilacollo Option”). Under the Huilacollo option, the Company may acquire a 100% interest, subject to a NSR, through a combination of work expenditures and cash payments as detailed in the table below:

Due dates Property Payments Work Expenditures
All amounts in US dollars
Effective Date (May 31, 2016) $ 250,000 -
Within 24 months of the Effective Date $ 500,000 $ 2,000,000
Within 36 months of the Effective Date - $ 3,000,000
Within 48 months of the Effective Date $ 250,000 -
Within 60 months of the Effective Date $ 250,000 $ 2,000,000
Within 72 months of the Effective Date $ 7,500,000 -
Total $ 8,750,000 $ 7,000,000

The Huilacollo NSR is 1.5% and buyable for $2,500,000 on precious metals and 2.5% buyable for $7,000,000 on base metals.

Baños del Indio

The Baños del Indio epithermal property is comprised of 5,000 hectares of well-developed high-level steam heated epithermal style alteration and is considered by Auryn to be one of the largest untested epithermal alteration centers in Peru. 

Baños del Indio shares many similarities with the La Coipa mine complex in northern Chile where economic mineralization is principally located beneath similar high-level steam heated epithermal alteration. Initial exploration to define drill targets will focus on structural mapping, multi-spectral analysis to identify high temperature clays, volumetric sampling and induced polarization geophysical surveys. 

The Company acquired the rights to the Baños del Indio property through an option agreement with a local Peruvian company, Exploandes S.A.C (the “Banos Option”). Under the Baños Option, the Company may acquire a 100% interest, subject to a net smelter return royalty (NSR), through a combination of work expenditures and cash payments (all dollar amounts are in USD) as detailed in the table below:

Due dates

Property Payments

Work Expenditures

On signing

$ 100,000


Within 12 months of the commence of work (additional)

$ 100,000

$ 200,000

Within 24 months of the commence of work (additional)

$ 100,000

$ 250,000

Within 36 months of the commence of work (additional)

$ 200,000

$ 1,000,000

Within 48 months of the commence of work (additional)

$ 150,000

$ 2,000,000

Within 60 months of the commence of work (additional)

$ 2,500,000



$ 3,150,000

$ 3,450,000

The Banos del Indio NSR is 3.0% with 50% (being 1.5%) buyable for $6,000,000. In the event the Company does not complete a feasibility study within 3 years of exercising the option, an escalating advanced royalty starting at $200,000 per annum shall become payable. The total amount of the advanced royalty is capped at $1.5 million.

The Company is also obligated to pay a production bonus of $2,500,000 upon initial commercial production.


The Curibaya property comprises of 31,600 hectares covering the regional Incapuquio fault zone and subsidiary structures that are collectively interpreted as one of the fundamental controls for both epithermal and porphyry styles of mineralization within the region. Importantly the licenses host a number of cross structures to the Incapuquio fault zone that are considered highly prospective.

Auryn has undertaken some initial exploration efforts which consisted of a cyanide leach stream sediment survey that has identified a cluster of gold & copper anomalies in contiguous drainage basins within the SW portion of the claim block spanning an area of approximately 50 square kilometres. These anomalies are the first stage of developing Cu/Au porphyry and Au epithermal targets.


The Sombrero copper-gold property comprises 4,600 hectares located 340 kilometres SE of Lima in southern Peru.

The Sombrero property is hosted in the Andahuaylas-Yauri belt and is interpreted to be on the north-western margins of the Eocene-Oligocene aged copper-gold porphyry and skarn belt that hosts the Las Bambas, Haquira, Los Chancas, Cotambambas, Constancia, Antapaccay and Tintaya deposits. The principal target at Sombrero is copper-gold skarn mineralization that Auryn feels have similarities to the Tintaya and Las Bambas mines in terms of their geological setting. The project is characterized by a strong structural control and significant copper and gold values from historical surface samples. Importantly there has been no drilling that has occurred on the project to date.

Geological mapping and geochemical sampling were completed over the project in 2007, and high-resolution ground magnetic and induced polarization surveys were completed during 2008.

The Company acquired the rights to the Sombrero property through an option agreement with Alturas Minerals Corp. In order to exercise the Option and acquire a participating interests (“Interest”) for 80% of the Sombrero concessions, Auryn must incur up to US$2.1 million work expenditures within a five year period and make cash payments of $200,000 as follows:

  • $140,000 upon entering into this Agreement which has been paid; and
  • $60,000 on or before the first anniversary of the Effective Date

Upon Auryn having completed its requirements to earn an 80% interest in the Sombrero Project, the parties shall form a customary 80:20 joint venture vehicle. For a period of 1 year after the formation of the Joint Venture (the “Initial Period”), Alturas’ 20% interest shall be “free carried” and Auryn shall have a right to acquire the remaining 20% from Alturas for $5 million.

Cautionary Wording with Respect to the Mineral Interests

Certain licenses with respect to Auryn’s projects in Peru are located within a special economic zone situated within 50km of the Peruvian border. As a non-resident company, Auryn’s right to ultimately exploit these licenses or register its interests require approval from the Peruvian government in the form of a Supreme Decree. Auryn is in the process of submitting its applications with respect the approval and anticipates receiving the approval prior to exercising it rights under the option agreements.