Categories: Precious Metals
Topics: General Precious Metals

Brien Lundin on Auryn Resources (TSX: AUG)

March 22, 2017

By: Brien Lundin
Gold Newsletter

I did have a chance to meet with Auryn Resources (AUG.TO; C$2.72) and Stratton Resources (SI.V; C$0.82), which largely share management teams, and came away even more positive than before.

For Auryn, the big news was that exploration on the Sombrero Project, part of the company’s Peruvian property portfolio, had recently yielded a remarkable 53-meter-long trend averaging 1.75 g/t gold. The trench was at the margin of a very large, 2.3-kilometer by 500 meter gold-in-soils anomaly.

In addition, the “known footprint” of gold-copper mineralization was extended to 4.5 kilometers by 4.2 kilometers. And all of this was accomplished by the company’s initial, two-week reconnaissance sampling program in December.

So it’s obvious that there’ll be much more news to come here.

I’ll admit that at first look I thought Sombrero was the most exciting exploration project in Auryn’s portfolio, in Peru or without. But these results are surprisingly good, even to me.

Auryn’s share price has been sliding ever since the company completed a C$41 million investment by Goldcorp in late January, and indeed it seems that Goldcorp might’ve top-ticked the share price in the near term.

But at current levels, and given the scope of the company’s prospects and its financial ability to explore them properly, current levels are a rare bargain for one of this group’s flagship ventures.

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