Aurumin Ltd has sunk its teeth into the company’s Plum Pudding gold deposit, revealing a 33 per cent rise in its resource after recent drilling at its Central Sandstone gold project, in Western Australia’s Mid West region, about 520 kilometres northeast of Perth.
The additional 4600 ounces of gold in the Plum Pudding resource boosted the company’s overall tally to 951,000 ounces, edging closer to a magical million ounces. The 951,000 ounces includes a 64,700-ounce gold resource grading 2.51g/t at its Johnson Range project, combining for the overall resource across its projects.
Drilling at the Plum Pudding deposit followed up on a stellar 18m hit running at 25.8 grams per tonne (g/t) gold, which excited the market about the deposit’s potential to define a decent gold resource.
After drill programs in April and December last year, the Plum Pudding resource has been increased to 413,442 tonnes grading 1.4g/t for 18,700 ounces of gold, with the vitally-important indicated category comprising 325,480t at 1.45g/t for 15,200 ounces.
The indicated component of the resource now represents a healthy 81 per cent of the total resource figure.
Results from the latest reverse circulation drilling program returned 3m at 2.79g/t gold from 20m, 11m going 0.82g/t from 35m in the same hole and 4m grading 1.08g/t gold from 23m.
Management says the mineralisation occurs as a sub-vertical zone of stockwork quartz veining within sheared ultramafic rocks. The drilling focused on the edges of the mineralised corridor to expand the gold zone. No bonanza zones were encountered outside the main mineralised shear corridor, reinforcing its belief the primary control on the mineralisation is the north/northwest-striking shear corridor.
Plum Pudding sits about 900m west/northwest of the company’s 500,000-tonne carbon-in-leach processing plant, an integral component to extracting gold, which will require upgrading before it can be brought back into the fold.
Aurumin managing director Daniel Raihani said: “We are very pleased to announce this resource upgrade after a successful quarter across the board for Aurumin, completing a capital raising that was well supported by major shareholders and board members, recommencing exploration and resource drilling programs at our highly prospective Central Sandstone project and announcing the Sandstone iron ore joint venture.”
The company also carried out drilling at its Shillington deposit, with assays returning an 8m slice grading 2.5g/t gold from a shallow 12m, a 14m section going 1.3g/t from 56m and 6m at 1.8g/t from 46m.
Several 4m composite samples returned anomalous gold. The company will collect and re-submit 1m samples from the anomalous zones for further analysis.
Management plans to release an updated mineral resource for the Shillington deposit within the next two months.
Aurumin is planning further drilling in the coming months. It has submitted a program of works for its Gwendolyn gold prospect and expects to undertake drilling this year.
Drilling will soon commence to target the iron-ore prospectivity at Central Sandstone, following an October announcement of its deal with private company Newcam Minerals for an exclusive six-month option on the iron ore rights at the project. The deal netted Aurumin a cool $500,000 upfront.
Newcam will conduct due diligence across the site. If it is satisfied with the exploration results from an agreed program decided upon by the two parties, it may exercise its right to earn a 50pc interest in the iron ore rights and establish a joint venture agreement with Aurumin.
If Newcam exercises the option, Aurumin will receive a further $500,000 payment. Newcam will also stump-up a $5 million loan to fund production start-up, with the money to be repaid from operating profit.
In a potential further boost for Aurumin, Newcam will pump a further $1m into the goldie’s bank account if a 2012 JORC-compliant resource is released for more than 3 million tonnes grading an average 60pc iron.
The two firms plan to contribute 50pc each of the agreed exploration costs incurred within six months. Aurumin is responsible for covering any holding costs for its tenements before the option expires.
A peak return of 67pc iron from rock chips and a series of banded-iron outcrops, potentially 5m to 40m wide across a non-continuous 6km strike of banded-iron material at surface, has given management confidence in the potential for economic iron deposits contained within its ground.
With the booming gold price soaring to ever-increasing heights and now returning more than $4500 per ounce in Aussie dollar terms, Aurumin’s Central Sandstone project with its near-million ounces and possible iron-ore upside, could soon find itself appealing to hungry competitors seeking to expand their gold inventory.
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By Craig Nolan
