Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Newfoundland-headquartered gold junior Aurion Resources’ (TSX-V: AU) stock soared over 27% on Tuesday after reporting new high-grade assay results from drilling at the Aamurusko prospect on its Risti project in northern Finland.
Two of the first three drillholes intersected high-grade gold mineralization near surface, with 42.28 g/t Au over 4.00 m intersected in one drillhole and 24.50 g/t Au over 4.75 m intersected in another, Aurion said in a media statement.
Aurion’s shares more than tripled in 2017 when it first announced the Finland discovery.
This isn’t the first time Aurion’s Finland prospect has attracted investors’ attention. Aurion’s shares more than tripled in 2017 when it first announced the Finland discovery.
Current work at the project site has also intersected gold mineralization in a 500 m step out drillhole, providing further evidence that additional near surface gold mineralization may exist in the same geological/structural setting west of the current main focus of drilling, Aurion also reported Tuesday.
Vancouver-based Haywood securities, an investment firm with $7 billion in assets under management offered it’s take on the results.
“Today’s results continue to support the thesis that mineralization is broadly associated with the east-west trending intrusive gabbro and sedimentary rocks,” Haywood stated.
Haywood also noted that several intersections occur away from the faulted contact, which could also widen the zone of potential mineralization at Aamurusko.
“More work is required to determine how significant these intersections are. The relative location of the high-grade drill intercepts and the high-grade boulders on surface suggests that there could be multiple zones of gold mineralization associated with the boulders,” the firm noted.
Drilling continues at Aamurusko, with assays pending for another six drillholes.
By market close on Tuesday, in heavy volumes of seven times the daily average, Aurion’s shares were trading at C$1.25. The company has a $84.2 million market capitalization.
Comments
Kurt Hoffman
Should read Finnish project.