25 May Option Agreement
AURASIAN MINERALS SIGNS OPTION ON GOKCANICA GOLD PROJECT, SERBIA
AURASIAN Minerals plc (“Aurasian” or the “Company”) is pleased to announce that it has executed an option agreement with Rockstone Group LLC (“RGS”) pursuant to which Aurasian can earn up to an 80% interest in the Gokcanica project licenses in Southern Serbia (“the Gokcanica Permits”).
The Gokcanica Permits consist of two adjoining permits with a combined area of 110km² located in southern Serbia, 5 km to the north of the town Josaniska Banja. The area is located within the 500 km² Rashka ore field. A Jurassic ophiolite sequence intruded and overlain by Tertiary andesitic volcanics and intermediate stocks covers the area. The board of Aurasian believes that good potential for porphyry and epithermal style mineralisation as well as deeper-level replacement base metal and gold deposits exists throughout the license.
Mining in the Gokcanica licence area dates back beyond contemporary records and is evidenced by many pits and shafts. Exploration from the 1970s focused on lead-zinc-silver veins. Euromax Resources Limited (“Euromax”) conducted exploration in the area from 2006 to 2008. Following this work a major copper company explored the area for porphyry copper mineralisation in 2014-2015.
Euromax completed a detailed mapping and soil geochemistry program over a 6 km long zone of phyllic to argillic altered andesite volcanics and intrusives with abundant ancient mine workings. Drilling at the northern end of this trend by Euromax intersected multiple gossan and massive sulphide intervals, one of which reported 12.4 metres at 1.5% copper, 1.4% lead, 0.8% zinc, 62 g/t silver and 1.6 g/t gold. This program also defined a 3 km by 2 km magmatic complex at the southern end of the trend which remains undrilled.
A major copper company followed-up this work on the large zone of phyllic to argillic alteration, which measures 6 km by 1 km wide, indicating the potential for a porphyry copper gold deposit. They identified a coincident Cu-Mo soil anomaly within this alteration. However after drilling 6 holes the major copper company did not locate the source of this Cu-Mo anomalism. In addition the phyllic alteration occurs within altered andesites immediately above an unconformity contact with the ophiolite basement. This is a classic contact zone for porphyry copper deposits to form, for example the Resk Project (700 million ton @ 0.7 % Cu, 0.3 g/t Au) in Hungary forms at an unconformity contact between basement and overlying altered volcanics.
More recent prospecting work has located a number of arsenopyrite and pyrite rich veins which outcrop over a 200 meter strike length, can be up to 20 meters wide, and with individual assays up to 67 g/t gold.Detailed channel sampling has not been completed on this zone and it has not been drilled. Aurasian plans to focus initial exploration on these zones for a potential high grade gold target. Exploration will consist of geological mapping, rock chip sampling, trenching and drilling.
Peter Mullens CEO of Aurasian Minerals commented, “We are excited to obtain an option over the Gokcanica Permits. With large areas of alteration and many undrilled gossan zones rich in precious metals we feel confident in moving the project forward to the drill stage and with the aim of discovering a significant gold deposit. Much of the previous work has been targeted at base metal veins and porphyry copper deposits and may therefore have overlooked the potential for significant gold mineralisation. The district as a whole is very under explored and previous exploration has mainly focussed on base metals and the Aurasian management therefore feels that we can bring our gold exploration expertise to bear”.
Under the option agreement Aurasian has until July 8 to complete a due diligence period, upon conclusion of which to the sole satisfaction of Aurasian the Company will pay RSG EUR10,000 and within 30 days issue RSG 2 million ordinary shares in the capital of the Company (“Ordinary Shares”). At this time Aurasian will also be required to pay EUR20,000 and issue 5 million Ordinary Shares to an unrelated third party by way of an introducers’ fee.
Upon payment of the sums above, Aurasian may earn up to an 80% interest in the Gokcanica project by completing the following:
(a) Stage 1:
In order to earn a 51% interest in the Gokcanica Permits, Aurasian must commit a minimum expenditure of USD 500,000 on an exploration program that will include a drilling of a minimum of 1,000m of either reverse circulation and/or diamond drilling within 2 years. This could include, but is not restricted to, mapping, trenching, rock-chip sampling, soil sampling, remote sensing, geophysics as well as other relevant items such as logistics and administration.
(b) Stage 2:
In order to earn a 70% interest in the Gokcanica Permits, in addition to the drilling commitment outlined above, Aurasian must complete a Pre-Feasibility Study (“PFS”) within 5 years.
(c) Stage 3:
In order to earn an 80% interest in the Gokcanica Permits, in addition to the drilling commitment and PFS, Aurasian must complete a Bankable Feasibility Study (“BFS”) within the time-frame of the exploration permits, their renewals or conversion to a mining permit.
About Aurasian Minerals
Aurasian Minerals PLC is an AIM listed junior exploration company exploring for copper and gold. Aurasian has an experienced board and technical team headed up by Chris Goss previously leader in project finance for emerging markets for the IFC, International Finance Corporation. The company is well funded in a difficult market. Currently they hold the Chadine polymetallic project located in Serbia which has an historical non-compliant resource, calculated by the Yugoslav Geological Survey, of 7.7 million tons of 1.1 % Cu, 2.6 % Zn, 1.0 % Pb plus Au and Ag credits.
For further information please contact:
Aurasian Minerals Plc
Peter Mullens (CEO) firstname.lastname@example.org
finnCap Limited – Nominated adviser
Christopher Raggett / Scott Mathieson +44 (0)20 7220 0500
Peter Mullens, who has reviewed this update, has more than 30 years’ experience in the mining industry and is a fellow of the Australian Institute of Mining and Metallurgy. He holds a BSc in Geology from Monash University, Melbourne, Australia.