Aurumin readies Sandstone gold play for early cashflow

Aurumin Limited has wrapped up its latest reverse-circulation drill program at the company’s Johnson Range project, which is part of its wider Central Sandstone gold project in the Western Australian Goldfields. The company aims to ramp up its existing 64,700-ounce resource grading a solid 2.51 grams per tonne (g/t) gold. 

Johnson Range is on a granted mining lease and near multiple processing centres, potentially enabling near-term development and mining opportunities to cash in on a roaring gold price, sitting at an impressive US$3214 (A$5078) per ounce.

The reverse circulation program drilled 18 holes for 1353 metres at the Gwendolyn deposit, which contains the 64,700-ounce resource, testing three targets within the top 80m of the resource. The program focussed on higher value areas within the resource’s current model.

The drilling goal is to increase Aurumin’s geological confidence in the existing inferred resource and to upgrade it to an indicated classification to support future mining studies.

Management plans to initiate economic studies and mine permitting on the basis of promising drill results. It has commenced baseline environmental and water studies to allow for the progression of mine permitting.

The company has finalised samples for laboratory testing and expects to receive the results in mid-May.

Aurumin managing director Daniel Raihani said: “Our focus is on validating and upgrading the Gwendolyn resource, which we believe could become a key near-term development opportunity within our broader Sandstone strategy. With the deposit located on a granted mining lease and gold trading above $5000 per ounce, the timing couldn’t be better to advance this asset toward development.”

The Gwendolyn deposit has a history of mining dating to the 1980s. Then-owner Vector Resources conducted a bulk sampling program at the project in 2014, producing 3150 gold ounces from 29,219t at a grade of 3.35g/t with 94.08 per cent recovery levels.

Central Sandstone’s total resource stands at 950,500 ounces, including the 64,700-ounce gold resource at Johnson Range’s Gwendolyn deposit, bringing the company tantalisingly close to the coveted million-ounce club.

Aurumin also recently completed drilling at its Shillington deposit, which is part of Central Sandstone, and is planning to soon release an updated mineral resource. Assays returned an 8m slice grading 2.5g/t gold from a shallow 12m, a section running 14m at 1.3g/t from 56m and 6m going 1.8g/t from 46m. 

Gold-laced Central Sandstone includes three granted mining licences, a 500,000 tonne per year carbon-in-leach gold processing plant that requires refurbishing, a permitted tailings storage facility, bore field and camp facilities. It also has the potential to host a sizeable iron ore deposit.

Recent drilling of 54 scout reverse circulation drill holes over seven targets and resampling of laboratory pulps from previous holes at the project unearthed several high-grade hits.

The 2000m drill campaign was jointly funded and undertaken on two of Aurumin’s three granted mining leases as part of private miner Newcam’s due diligence before it exercised its option to enter a joint venture agreement with Aurumin.

The drilling program focused on high-grade direct shipping ore iron, with the seven priority targets being identified from outcropping enriched iron formations, backed up by rock chip sample results assaying more than 60 per cent iron.

Analyses from the recent drilling and pulp resampling from reverse circulation drill testing in 2019 and 2022 returned significant evidence of shallow high-grade iron mineralisation.

Highlights of iron mineralisation include 10m at 62.12 per cent iron from 1m, 15m at 59.24 per cent from 14m, 9m at 60.75 per cent from 3m and 8m going 60.42 per cent iron from 10m.

With several shallow hits and assays pointing to desirable low levels of the deleterious components of phosphorous and silica, Newcam has elected to expand and extend the joint venture option agreement, possibly providing Aurumin with a stake in another viable asset.

Aurumin will keenly await the assay results from its latest drill program at Gwendolyn, as it looks to seize an invitation to the gold producers’ party now in full swing.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au