Auryn Resources (AUG.V) has recently completed the acquisition of North Country Gold (NCG.V) which owned the Committee Bay gold project in Nunavut, Canada. Even though Auryn was already earning a 51% stake in the project by completing C$6M in exploration expenditures, the company soon realized it would make more sense to just acquire North Country Gold and own 100% of the property.
Auryn didn’t waste any time and has quadrupled the company’s land position at and around the Three Bluffs project, and Auryn now owns a total claim position of almost 218,000 hectares (2,180 square kilometers). The reason for this aggressive expansion is pretty simple. Three Bluffs is part of a 300 kilometer long greenstone belt and it’s in the company’s best interest to stake as many claims on this greenstone belt as possible to ensure it has full access to a lot of interesting zones that might help to increase the total resources at Three Bluffs.
And this seems to have been the right decision as the company’s summer/fall drill program at Three Bluffs was successful in finding more high-grade mineralized structures with drill intercepts of for instance almost 17 meters at 10.36 g/t gold and some longer, but lower grade intervals of almost 30 meters containing 1.41 g/t gold and 27.5 meters at 2.97 g/t gold. Keep in mind this is just a first pass at the property and finding decently-graded zones could and should already be seen as an exploration success.
Add the fact Auryn has recently confirmed the existence of a mineralized corridor with a strike length of at least 20 kilometers, and you immediately understand the current 1.2Moz resource estimate at Three Bluffs is just the beginning and there’s a pretty good chance to find a double digit amount of ounces at Committee Bay. It doesn’t happen very often we are making bold statements, but the exploration potential at Committee Bay is huge.
Auryn will outline an exploration program for 2016 after getting all results from the 2015 exploration program but as the first drill results and sampling program have been very encouraging, we are expecting quite a substantial amount of drilling to occur next year.
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Disclosure: The author holds a long position in Auryn Resources and plans to increase this position. Please see our disclaimer for current positions.
