Deepest Hole Yet Delivers 905-Meter Gold-Copper Intercept at Ecuador Project

Auro Metals Inc. (AURO:TSXV; AURFF:OTCQB) reported assay results from three additional drillholes from its 2026 Phase I Drill Program at the 100%-owned Santa Barbara Gold-Copper Project in Zamora-Chinchipe Province, southeastern Ecuador. The company also reported completion of the 11,047.35-meter Phase I program and said drilling had continued without interruption into its 20,000-meter Phase II program.

The latest results came from DSB-68, DSB-69, and DSB-70 in the southern part of the known mineralized porphyry system, known as Santa Barbara South. The holes were designed to test continuity between historical drill intercepts and extensions of mineralization up-dip, down-dip, and at depth.

DSB-68 intersected 905.22 meters grading 0.60 g/t gold and 0.12% copper from 56.5 meters to 961.72 meters. Weaker mineralization continued farther down the hole to its final depth of 1,282 meters. The hole was drilled sub-vertically in the southern portion of Santa Barbara South to test the depth extent of the porphyry mineralization system, and was the longest and deepest hole drilled at Santa Barbara to date.

"DSB-68 is the longest and deepest hole drilled at Santa Barbara. On a gram by meter basis, it returned the best reportable intercept at the Project to date, including all historical drilling," CEO Victor Feng said. "The hole remained mineralized to the end at a depth of 1,282m, showing mineralization is open at depth."

DSB-69 intersected 103.05 meters grading 0.53 g/t gold and 0.09% copper from 70.45 meters to 173.5 meters, along with 200.55 meters grading 0.59 g/t gold and 0.08% copper from 247.45 meters to 448 meters. The latter interval included 57.83 meters grading 1.06 g/t gold and 0.10% copper from 266.67 meters to 324.5 meters.

The hole was drilled approximately 120 meters east of DSB-66 at an azimuth of 260 degrees and a dip of minus 63 degrees to a depth of 490.05 meters. It was designed to test the down-dip extension of mineralization intersected in DSB-66, whose results were released Aug. 18, 2026. The company said the DSB-69 results indicated that mineralization remained open in the down-dip direction to the east.

DSB-70 was drilled to 306.6 meters in the northern part of Santa Barbara South to infill between historical hole DSB-10 and 2026 hole DSB-64. It intersected 262.5 meters grading 0.71 g/t gold and 0.10% copper from 10 meters to 272.5 meters, including 100.45 meters grading 1.01 g/t gold and 0.11% copper from 169.35 meters to 269.8 meters.

According to the company, DSB-70 indicated that mineralization began near surface and included higher-grade mineralization in a deeper structural zone containing basaltic andesite, diorite porphyry, and volcano-sediments. From approximately 270 meters to the end of the hole at 306.6 meters, the lithology changed mainly to volcano-sediments with little mineralization and quartz veining.

The Phase I program totaled 11,047.35 meters across 22 drill holes. Results for 17 holes had been published as of September 15, with assays for five remaining holes pending. Phase I was designed to confirm historical drill results, conduct infill drilling to upgrade the existing mineral resource ahead of a future resource update, and obtain fresh drill core to advance the company's understanding of mineralization controls and metallurgy.

The company reported that Phase I increased drill density across large portions of the inferred resource, intersected numerous long intervals of gold-copper mineralization, extended mineralization at depth in several areas, and demonstrated up-dip and down-dip openness in certain areas of the known deposit. In several long infill holes published to date, gold grades were significantly higher than the gold grades of the current inferred resource.

Drill intercepts reported by the company represented core length, with true widths of mineralization unknown. Grades were length weighted, and a cutoff of 0.2 g/t gold was applied to calculate drill intercepts. Gold equivalent was calculated as gold in g/t plus copper percentage multiplied by 0.259, based on a gold price of US$3,200 per ounce and a copper price of US$12,000 per tonne of metal, assuming average processing recoveries of 85.5% for gold and 19.6% for copper.

Gold and Copper Markets Remain Supported by Longer-Term Demand Factors

The gold market remained elevated in late September, with Trading Economics reporting on September 22 that gold was trading at US$4,337.63 per ounce, up 15.14% over the previous year. The metal had come under near-term pressure as comments from Federal Reserve officials strengthened expectations for additional U.S. interest rate increases. Trading Economics reported that gold had also remained supported by broader factors, including central bank purchases, geopolitical uncertainty, fiscal sustainability concerns, and currency debasement.

The report described gold as "one of the most widely followed precious metals" and noted that demand had been driven by financial markets, jewelry consumption, and industrial use.

The copper market had also strengthened. According to September 22 data from Trading Economics, copper futures had risen above US$6.70 per pound during a sixth consecutive session of gains, with the quoted price at US$6.7736 per pound. The metal had gained 47.75% over the previous year.

Chen Lin of What is Chen Buying? What is Chen Selling? wrote, "AURO.v hit one of the best holes."

Trading Economics said "supply concerns continued to support prices," while global mine production had declined 1.1% year over year during the first half of the year.

The report also cited strong demand from power grids, AI data centers, and defense. It described copper as playing "a critical role in construction, electronics, power generation, and renewable energy systems."

David Jagielski of The Motley Fool examined the gold market on September 21 following the Federal Reserve's first interest rate increase in multiple years.

He noted that gold had been trading at approximately US$4,300 per ounce after having exceeded US$5,000 earlier in the year. Jagielski wrote that "economic and political uncertainty could lead to investors loading up on safe-haven assets such as gold." He also pointed to political and geopolitical uncertainty and elevated stock valuations as factors that had contributed to investor interest in safe-haven assets.

Jagielski contrasted the environment with the interest-rate cycle that began in early 2022, when gold declined as the Federal Reserve raised rates aggressively in response to inflation. He noted that the circumstances in 2026 had differed from that earlier period. Regarding the relationship between rates and the precious metal, he wrote, "Although rising interest rates alone might not lead to higher gold prices, they could very well contribute to them."

Chen Lin Sees Parallel With Major Porphyry Drill Result

Chen Lin of What is Chen Buying? What is Chen Selling? commented on Auro Metals on September 17, highlighting the length and grade of DSB-68.

"AURO.v hit one of the best holes. DSB-68 was the longest and deepest hole ever drilled at Santa Barbara, 905.22m @ 0.60 g/t Au and 0.12% Cu from 56.50m. Further down the drillhole, weaker mineralization continues until the end of the hole at a depth of 1,282m," Lin wrote.

Lin compared the result with FSDH044 at the Filo Del Sol project, which he said intersected 942 meters of 0.42% copper, 0.32 g/t gold, and 2.2 g/t silver, or 0.67% copper equivalent.

"It is of similar length and grade as Filo's hole FSDH044 at the Filo Del Sol project," Lin wrote. He said the Filo result was reported on March 31, 2021, and described it as "the catalyst that kick-started their incredible share performance."

Lin concluded, "Let's hope for a repeat with AURO!"

Drilling, Metallurgy, and the Next Phase of Work

Auro's 20,000-meter Phase II diamond drill program was underway following completion of Phase I. The program was designed to test gaps between known parts of the deposit, conduct step-out drilling on targets identified through historical surface rock-chip sampling and chargeability anomalies from a historical IP survey, test depth extensions of known mineralized zones, and complete additional infill drilling.

The September 16 corporate presentation stated that four drill rigs were operating and another three were being mobilized to the site. The three additional rigs were identified in the September 15 announcement as KD1700 rigs capable of drilling to depths exceeding 1,000 meters, with the rigs to be used to test resource extensions at depth.

The presentation scheduled the completion of the Phase II drill campaign for the fourth quarter of 2026. It also listed the Phase II drill campaign as having begun in August 2026 and remaining ongoing as of the presentation date.

The company's 2026 budget table, which was denominated in Canadian dollars, allocated CA$8.0 million to the 20,000-meter Phase II drill program. It also listed CA$4.0 million for the completed Phase I drill program, CA$500,000 for Ecuador operations, and CA$1.0 million for general and administrative expenses. The table included an upfront cash payment of CA$2.07 million to Silvercorp, which was marked as paid, bringing the listed 2026 budget to CA$15.57 million.

Initial metallurgical test work was scheduled to commence in October 2026. Fresh rock collected during Phase I was designated for the program. The September 15 announcement stated that Auro was preparing samples for testing that would include gravity concentration, comminution, flotation, and cyanide leaching. Three sample types were to be evaluated for each test: oxide material, sulfide material from the upper portion of the deposit at less than 400 meters, and sulfide material from the lower portion at greater than 400 meters. The stated objective was to optimize the processing flowsheet and maximize gold and copper recoveries.

A subsequent Phase III drill program was expected to follow the conclusion of Phase II. According to the September 15 announcement, Phase III was planned to continue focusing on step-out drilling and resource expansion, including testing targets at depth.

Ownership and Share Information¹

Auro Metals Inc. has a market cap of approximately CA$221.40 million, with 131 million shares outstanding. The company's 52-week range is CA$0.14-CA$2.25.

Management and Insiders own 47.4%, and Strategic Investors own 27.5%. The rest is retail.

FAQs

What were the latest Auro Metals Santa Barbara gold-copper drill results?
Auro Metals Inc. reported three additional holes from its 2026 Phase I Drill Program at the Santa Barbara Gold-Copper Project in Ecuador. The results included DSB-68, which intersected 905.22 meters grading 0.60 g/t gold and 0.12% copper from 56.5 meters to 961.72 meters.

How much gold and copper did Auro Metals intersect in drillhole DSB-68?
DSB-68 intersected 905.22 meters at 0.60 g/t gold and 0.12% copper. Weaker mineralization continued farther down the hole to its final depth of 1,282 meters. The company identified DSB-68 as the longest and deepest hole drilled at Santa Barbara to date.

What did Auro Metals report from drillholes DSB-69 and DSB-70?
DSB-69 returned 103.05 meters grading 0.53 g/t gold and 0.09% copper and a separate 200.55-meter interval grading 0.59 g/t gold and 0.08% copper, including 57.83 meters at 1.06 g/t gold and 0.10% copper. DSB-70 intersected 262.5 meters grading 0.71 g/t gold and 0.10% copper, including 100.45 meters grading 1.01 g/t gold and 0.11% copper.

What is Auro Metals' Phase II drill program at the Santa Barbara Gold-Copper Project?
Auro Metals' ongoing Phase II program consists of 20,000 meters of diamond drilling. It was designed to test gaps between known portions of the deposit, conduct step-out drilling on new targets, test depth extensions of known mineralized zones, and complete additional infill drilling.

How many drill rigs are being used at the Santa Barbara Project?
Auro's September corporate presentation reported four drill rigs turning, with another three rigs being mobilized to the site. The three additional KD1700 rigs are capable of drilling to depths of more than 1,000 meters.

When will Auro Metals complete its Phase II drilling program?
The company's September corporate presentation scheduled the completion of the 20,000-meter Phase II drill campaign for the fourth quarter.

What metallurgical testing is planned for the Santa Barbara Gold-Copper Project?
Initial metallurgical testing was scheduled to begin in October. The program includes gravity concentration, comminution, flotation, and cyanide leaching using oxide material and sulfide material from both the upper and lower portions of the deposit.

What is planned after Auro Metals' Phase II drilling at Santa Barbara?
A subsequent Phase III drill program was expected to follow Phase II and continue focusing on step-out drilling and resource expansion, including testing targets at depth.

What did Chen Lin say about Auro Metals' DSB-68 drill result?
Chen Lin of What is Chen Buying? What is Chen Selling? highlighted DSB-68 on September 17 and compared its length and grade with a 942-meter historical drill intercept from the Filo Del Sol project. He described DSB-68 as "one of the best holes."

What are the current gold and copper prices?
Trading Economics reported on September 22 that gold was at US$4,337.63 per ounce, representing a 15.14% year-over-year increase. Copper was quoted at US$6.7736 per pound, up 47.75% over the previous year.