Aura Silver has two active projects where we are searching for precious metals. One is located in an established silver producing district in Mexico and the second is located in an under explored, but active Archean greenstone belt in northern Canada.
In Mexico, Aura Silver holds properties in the prolific San José mining district in Oaxaca. The Company holds a 100% interest in the Taviche Project (986 hectares) after acquiring its former joint venture partner's interest in February 2016. The property is underlain by a large number of gold and silver-bearing quartz veins and former Spanish colonial mines. From the late 1800s to the early 1900s, over 60 small mines operated in the San José district. Presently, Fortuna Silver Mines Inc. operates the San José silver mine located approximately forty kilometres west of the Company's Taviche Concession.
Exploration by Aura Silver discovered the Higo Blanco jasperoid and vein breccias complex, a 7 kilometre long silicified ridge dotted with surface values of gold and silver mineralization with pathfinder minerals such as antimony indicating that epithermal gold veins may lie deeper in the stratigraphy. Since 2009, Aura Silver has focused its Mexican exploration in this area.
Drill results at Higo Blanco have included significant high grade silver intercepts, for example; 34.2 metres averaging 269.7 g/t silver equivalent including 1.45 metres grading 1,116.2 g/t silver equivalent and 12.1 metres averaging a grade of 533.1 g/t silver equivalent with 1.3 metres grading 2,466.5 g/t silver equivalent in a second hole. Drilling from 2009 to 2011 led to the completion of an initial NI 43-101 resource estimate which reported an Inferred silver resource of 865,000 tonnes at a grade of 119 g/t for 3.3 million ounces of contained silver and an Inferred gold resource of 3.3 million tonnes at a grade of 0.51 g/t for 54,000 ounces of contained gold. Funding to test additional targets is being actively sought by management. The potential to enlarge the current deposit and to find additional resources is thought to be excellent.
Aura Silver's Greyhound Project is a high-grade gold/silver and base metal project located in the Churchill region of Nunavut, Canada. The Company holds a 100% interest in 13,585 hectares of staked land currently optioned to Agnico Eagle Mines Limited ("Agnico"). Agnico's Meadowbank gold Mine lies 50 km to the north of Aura Silver's Greyhound Project. Prospecting has uncovered subcrop rock assaying up to 28 g/t gold, 5,380 g/t silver, 9.2% copper and 18.5% zinc. These showings lie along a discontinuous iron formation horizon within an Archean greenstone belt.
The Greyhound project is located north of the community of Baker Lake, Nunavut and south of Agnico's Meadowbank Gold Mine. An all-weather road to the Meadowbank Mine from Baker Lake crosses portions of the Greyhound property which greatly enhances the project's access and infrastructure setting the project apart from many other exploration projects in the north.
Agnico holds the right to earn an interest in the 13 claims. During the initial three-year term of the option agreement Agnico can earn a 51% interest in the Greyhound claims by incurring $1,750,000 in exploration and providing a total of $210,000 cash option payments to the Company. Agnico intends to enter the third year of exploration during June 2016 and is committed to spending a minimum of $1,000,000 to further exploration during the field season. Interest in the project is high due to excellent drill results in 2015. One hole intersected 25 metres of a stockwork zone of quartz-carbonate veining hosted within mafic volcanics. Of particular note is that the last 1.5 metres of the 195 metre length of core assayed an impressive 6.41 g/t gold. Follow-up of this hole and others in 2016 is warranted. Exploration continues.
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