The Sombrero copper-gold property comprises over 100,000 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.
Trenches with 99 meters of 0.46% copper equivalent and 105 meters of 0.3% copper equivalent, where mineralization remains open, are included in the latest results out of Sombrero. In addition, several high-grade gold structures sampled up to 193 g/t gold.
Broad zones of oxide copper and gold mineralization (endo-skarn) have been encountered within a diorite-monzondiorite intrusive complex. This is peripheral to the main exo-skarn target areas between the intrusive body and the Ferrobamba limestone sequence. The exo-skarn target area is interpreted to be between 500 – 1000 meters from the mineralized trenches. Importantly, the endo-skarn mineralization has been encountered over an approximate width of one kilometer, demonstrating the potential size of the mineralized system at Sombrero.
Trench highlights are presented in the table below. It is important to note that the mineralization remains open in trench 18SRT-09 to the east and in trench 18SRT-08 to the south. Auryn is currently conducting induced polarization (IP) and magnetic geophysical surveys to identify buried sulphide bodies along the contact between the intrusives and limestones.
Sombrero Trench 2018 – Copper and Gold Significant Intercepts
|* No less than 5m of >= 0.1 g/t Au, maximum dilution 5m|
** No less than 5m of >= 0.1% Cu, maximum dilution 5m
Metal price used for Eq calculations: Au $1300/oz and Cu $3.28/lb, no adjustments for metallurgical recoveries have been made.
High-grade gold mineralization has been encountered in several discrete structures approximately 1 – 3 meters in width across a 400 meter by 1.5 kilometer long corridor. These samples were taken within the same endo-skarn intrusive body as our trenches with assays up to 193g/t gold. The structures sampled extend up to 1.5 kilometers north of the mineralized trenches and demonstrate a strong component of gold mineralization within the larger mineralized skarn complex. In addition, isolated gold-bearing jasperoid veins were sampled within the Ferrobamba limestone and returned assays up to 7.75g/t gold. This indicates the potential for an exo-skarn body at depth along the contact zone with the intrusive complex. A summary of 2018 rock samples are presented below.
Sombrero Rock 2018 Highlights
|Sample ID||Au (g/t)||Cu (ppm)|