Ann: Sampling returns results up to 569g/t just 6km from Resource, page-27

listen like like Shaw and Partners have jus completed an update on AUT. Thi# was just on pro active.

AuTECO Minerals Ltd (ASX:AUT) has maintained its buy recommendation with a share price target of A$0.21 in a research report compiled by Shaw and Partners Financial Services.

The analysis is backed by recently collected bonanza-grade surface samples of up to 569 g/t, highlighting the potential presence of a district-scale mineralised system at the Pickle Crow Project in Canada.

AuTECO has established a 2.23 million resource, including 1.92 million ounces at 9.3 g/t, making it one of the highest-grade gold explorers on the ASX.

The company’s shares are currently trading at A$0.043 with a market cap of $97.81 million

Following are the excerpts from the Shaw and Partnersresearch report:

Event

AuTECO has released results from its summer regional field activities at its high-grade Pickle Crow Gold Project. Some of the grades from the Tarp Lake Shear zone are exceptional.

Sampling at the outcropping veins of the Metcalf prospect has returned assays as high as 569g/t gold.

This prospect is six kilometres away from the existing 2.23-million-ounce resource and will be drilled as part of the upcoming winter drill program.

Pickle Crow is shaping up as a multi-million-ounce gold province.

We find it remarkable that AuTECO is now trading at less than half its value prior to the last resource upgrade and with ongoing exciting exploration results.

In our view, AuTECO is one of the most exciting junior gold explorers on the ASX.

Highlights

AuTECO Minerals is re-establishing gold production at the Pickle Crow Gold Project in Ontario, Canada. Pickle Crow was originally discovered in the early 1930s and commenced commercial production in 1935. The mine operated until 1966 during which time it produced 1.5 million ounces of gold at an average grade of 16 g/t gold.

Pickle Crow sits in a highly prospective but lightly explored region of Ontario. The initial exploration focus was on the near mine discovery, extension and infill drilling to enable the rapid growth in the Pickle Crow resource. The focus is now regional exploration targets, with two rigs now testing targets outside the resource area.

There are two distinct types of mineralisation at Pickle Crow; a high-grade quartz vein system and an alteration-hosted shallow resource in the Banded Iron Formation (BIF).
Historical production was from high-grade veins, but the discovery of mineralisation in the BIF is potentially game-changing for how the project will be developed.

AuTECO has released results from its summer regional field activities including surface sampling at the Metcalf prospect on the Tarp Lake Shear, about 6 kilometres north of the historic mine workings and the current resource. Sample assays include 569 g/t, 27.4 g/t and 9.0 g/t.

AuTECO also reports that a rock chip sample on an outcropping vein around 3 kilometres south of Metcalf has returned 35.5 g/t – which highlights the potential for the Tarp Lake Shear to host a significant high-grade gold discovery.

AuTECO is now gearing up for its winter drilling campaign where ground conditions are more favourable for rig mobilisation and the Metcalf prospect will be drill tested in coming months.

In this release, AuTECO also outlined further excellent results on the Vein 5 structure showing that the mineralisation extends along strike away from the historic mining activity. in our view it is highly likely that the existing 2.23-million-ounce resource will increase.

Earlier this year AuTECO announced excellent results from resource definitional and extensional drilling on the existing resource. One hole on the new Tyson vein discovery had multiple stacked intersects including 1.2 metres at 37.5 g/t from 284m, 7.8 metres at 17 g/t from 335 metres and 5.6 metres at 4.9g/t from 442 metres.

AuTECO remains well funded with A$17.4 million of cash on June 30, 2022, but has reduced the number of active rigs to two to conserve cash whilst capital markets remain difficult.

Recommendation

We (Shaw and Partners) maintain our buy recommendation and A$0.21ps price target.

Catalysts for the stock to reach our price target include further drilling results and a resource upgrade.