Projects
The Thormodsdalur (Thor) Project
Location
Iceland (earn-in agreement),
~20km east of Reykjavik
Stage
Exploration
Commodities
Gold, Silver
On April 27, 2026 Aurania entered into a definitive option agreement with St-Georges Eco-Mining Corp (“St-Georges”) (CSE: SX), a Canadian incorporated mineral exploration company and its wholly owned subsidiary Iceland Resources ehf (“IR”), an Icelandic incorporated precious metals exploration company to work collaboratively to define and execute a phased exploration program aimed at advancing the Thormodsdalur gold project (“Thor’s Valley” or the “Project”), towards initial modern resource definition. The Thor’s Valley project is held by IR and is located approximately 20 kilometres east of Reykjavík, the capital of Iceland.
The Thor’s Valley project represents a compelling opportunity with strong exploration upside. By formalizing our collaboration with St-Georges, Aurania is positioning itself to unlock the potential of an under-explored geological district. Thor’s Valley displays all the key signatures of a robust epithermal gold system, supported by a history of documented high-grade mineralization and a suite of compelling structural targets that remain largely untested by modern exploration methods. The agreement with St-Georges allows Aurania to deploy its technical expertise toward a highly prospective gold project. Aurania intends to progress the Thor’s Valley project with discipline, technical rigour, and a strong commitment to unlocking its full potential.
Summary of Terms under the Agreement
An Initial payment of US$150,000 in common shares of Aurania was issued to St. Georges on May 8, 2026, the closing date of the Agreement.
- Aurania to incur exploration expenditures of US$5 million over four years to earn a 70% interest in the Project, such exploration expenditures to be incurred as follows:
- At least US$500,000 prior to the first anniversary of the Execution Date;
- At least US$1,000,000 prior to the second anniversary of the Execution Date;
- At least US$1,500,000 prior to the third anniversary of the Execution Date;
- At least US$2,000,000 prior to the fourth anniversary of the Execution Date;
- Upon completing the First Option, St-Georges will have the option to choose between maintaining a 30% interest in the Project through a joint venture or retain an up to 3% net smelter return royalty on the Project, with such Royalty to be reduced as necessary such that the aggregate royalty burden on the Project shall not exceed 3%, inclusive of any pre-existing NSR royalties; and
- If St. Georges elects to retain the Royalty, Aurania will have the right, in its sole discretion, to increase its ownership to in the Project to 100% by incurring an additional US$2,000,000 of exploration expenditures.
A joint exploration committee is being established between Aurania and St-Georges, with Aurania being the technical operator.
Full project details
Thor’s Valley is a historically known gold-bearing, low-sulphidation epithermal system that was initially discovered in 1903 when two Icelandic farm boys picked up pieces of white quartz from a stream, which proved to be gold-bearing. A number of ventures were organized from 1911 to 1924 using German or British capital. Two shafts were sunk and approximately 400 metres of lateral workings performed. As a result of this, the productive vein was estimated to be 1 metre wide and at least 1 kilometre long. Reported grades were 11 g/t to 315 g/t gold[1]. The ore was “direct shipping” and initially sent to Norway and later to Germany for treatment. There are no historic tailings on site. Perhaps significantly, the historical record indicates that the last operator, Arcturus, a German company, failed due to the Weimar hyperinflation rather than ore depletion.
In the 1990’s, several programmes of geochemical and petrographical studies were done, including a vertical geothermal well to a depth of 455 metres which encountered multiple mineralized quartz veins, including one at the bottom of the hole. In 1997, a total of 1069.21metres were diamond drilled in nine holes, however, average core recovery was only 52%. The intervals sampled graded 1.13 g/t to 46.10 g/t Au but this is not considered representative and true widths could not be calculated.
Between 2005 and 2006, the private exploration company Melmi ehf drilled 32 holes totaling 2431m, which returned results up to 415.40 g/t Au. Melmi ehf was acquired by Iceland Resources in 2020, which completed 11 additional drill holes totaling 1780m with results of up to 113 g/t Au1.
[1] Additional information regarding the Thormodsdalur project is available on Iceland Resources’ website at www.icelandresources.is/thormodsdalur .
Why Iceland?
Aurania is beginning an exciting new chapter with gold exploration in Iceland—a jurisdiction known for innovation, transparency, and geological opportunity.
Iceland’s geological potential lies in its rare tectonic setting, proven epithermal gold occurrences, active geothermal systems, and limited modern exploration. While not yet a mature mining jurisdiction, it offers compelling discovery upside for companies capable of applying contemporary geological models and technologies to unlock its concealed mineral systems.
Iceland offers a highly skilled workforce, well-developed infrastructure, and relatively barren landscapes with excellent bedrock exposure and minimal vegetation cover—conditions that are ideal for exploration.
The Thor Valley mineralization is a classic banded epithermal chalcedony-ginguro vein system with gold occurring both in free form and in association with sulphides. There are obviously a number of different vein sets here that appear controlled by regional and local structures.
The Project consists of a National Exploration Permit covering approximately 51,300 hectares in Iceland.
Planned Work Program
Aurania anticipates completing an initial exploration program focused on targeted drilling and surface exploration designed to test deeper and along-strike continuity of the known mineralized zones, utilising both historical data and newly generated technical information. Several of the previous drill holes with poor recovery will be twinned.