(Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long AU.V)
Aurion Resources (AU.V, last at C$2.29) released a brief update this morning on the progress of its ongoing drill program in the Central Lapland Greenstone Belt of Finland. The drilling started just after I concluded my site visit in mid-September and the company has drilled 14 holes since that time. 2630 metres of an initially planned 3400-metre maiden drill program have been completed to date and the 2017 program is being increased to 5000 metres, which should be completed by year-end if drilling productivity is consistent. It's not surprising that the drill program has been extended given that Aurion has now found "structure" with quartz veining and accessory mineralization in core that seems to match what I saw first-hand in boulders at surface. There is also mention of "trace" visible gold (VG), which is welcome news indeed. VG of any sort usually leads to companies rushing to put magnified photos of said gold grain(s) on their website for investors to pore over, but I suspect that Aurion will take a more conservative tack and let the assays do the talking instead. All in all, it would be very difficult for me to read today's news as anything but supportive of the exploration story at Aamurusko, but now the real work of delineation and waiting for assays begins.
So has Aurion hit the proverbial motherlode? The answer is "maybe", but the company will need to drill more and wait for assays before that can be said for sure. Finding "a number of zones with quartz veining and quartz-stockworking" with "trace" VG after only 14 holes is some good fortune indeed; and it speaks to the quality of Aurion's geological model at Aamurusko. Aurion appears to have already found a favourable structural corridor that may be the source of the boulders seen at surface in the area. The company has guided that the market will have to wait until January for assays, but now that the company appears to be "on structure" the focus will be on the delineation of that structural corridor with more drilling between now and mid-December before the team takes a well-deserved break over Christmas.
Making any kind of grade interpretation based on the information released is impossible at this stage, but the real key to me is that Aurion has already hit structure. The importance of this may not be readily apparent to the casual observer, but the descriptions of quartz veins and quartz stockwork veining in core should start setting lightbulbs off in people's heads with respect to the potential for this zone to be the source of at least some of the gold-bearing quartz boulders at surface. In those boulders, in addition to gold, I saw (or saw evidence of) most of the accessory minerals (pyrite, pyrrhotite, chalcopyrite, and galena) that Aurion mentioned in its press release today. That gives me some real encouragement. If I think of those accessory minerals almost like a geochemical "fingerprint" of the boulders, and consider that Aurion is now seeing those same minerals in core at depth, it gives me some comfort in believing that the boulders may have been sourced from this quartz-veined corridor of underlying bedrock.
Now the only thing to do is drill, drill, drill... and of course wait patiently for assays. Discovery is a long process punctuated by key events. I think today is one of those key "derisking" events, but as always, time will tell.