Aurion Resources Ltd (AU-V: 1.64)
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Tracker - July 10, 2019: Spec Value Rating for Aurion Resources Ltd (AU-V)

Aurion Resources Ltd was assigned a Bottom-Fish Speculative Value rating on December 14, 2018 at $1.10 based on a strong working capital position in excess of $10 million and the potential of its 100% owned Risti project in the Central Lapland Belt of Finland to turn into a rich high grade gold vein district similar to the Timmins district of Canada. The rating was shifted to Fair Speculative Value effective July 10, 2019 following a 50% price increase in H1 of 2019 arising from initial drill results whose bonanza grades are flashy but very short and still lacking a structural framework that allows one to start visualizing tonnage. However, the geological context resembles that of the Timmins district in Ontario where splays from the crustal scale Porcupine-Destor fault in close association with conglomerate units are the hosts for high grade gold quartz veins. Aurion's 100,000 ha Finnish land position covers 80 km of the equivalent 125 km Sirkka shear zone within the Central Lapland greenstone belt of which the Risti project is a 100% owned discovery exploration focus while other parts are optioned out to B2 Gold and Kinross as homage to the prospect-generator-farmout model. The Proterozoic Central Lapland greenstone belt has a similar size to the Archean Abitibi belt but has only 9.1 million ounces gold identified compared with 83.6 million for the Abitibi belt. The biggest deposit is Agnico-Eagle's Kittila Mine which is not associated with the Sirkka Shear Zone. Since acquiring the Finnish property portfolio in 2014 from Dragon Mining ltd, a former ASX listing that now trades on Hong Kong and which operates gold mines in Sweden and Finland, Aurion has had two major seasonal price spikes since 2017 ($3.39 peak in 2017) based on an emerging high grade orogenic quartz vein gold system at the Risti project. The 2017 run enabled Aurion to raise $25 million including $15.9 million at $2.32 from Kinross Gold, while no financings were done in 2018. The goal is to outline a substantial bedrock source for a field of high grade boulders called Aurora found in 2016 which sparked the stock run in 2017. So far Aurion has intersected high grade veins, but has suffered seasonal winter slumps because the mineralization has not hung together to form a coherent zone that qualifies as a major discovery and the winter darkness of the Arctic location prevents helicopter support. Since drilling resumed in January 2019 Aurion has done two financings that raised $16.4 million: $6.4 million at $1.05 in April and an upsized $10 million bought deal at $1.50 in July led by Eric Sprott with a personal $5 million investment. Aurion has not allowed warrants since David Lotan emerged as the largest shareholder in early 2016 and became the financing engine behind Mike Basha's Finnish initiative after Aurion's failed effort as a Carlsbad backed prospect-generator in Nevada. So far the farmouts to B2Gold and Kinross have not generated anything newsworthy during the past two years. The focus for the 10,000 m 2019 drill program is the Aamurusko prospect within the Risti project. Upon completion of the July 2019 bought deal Aurion will have 88.8 million shares and more than $20 million working capital to fund a critical exploration season where the goal is give shape to a gold zone that can be systematically delineated.

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