Gold strikes in oxidised shale at Aruma Resources’ Melrose project in the Pilbara similar to those found in nearby mines have spurred the company on to keep sniffing around the iron ore-rich region.
Aruma’s maiden RC drill program at Gossan Hill hit several low-grade intercepts, chief among which were a 7m strike at 0.41 g/t gold from 35m and a 2m strike going 0.67 g/t from 3m.
Some 48 holes were sunk during the campaign probing 4784m.
Gossan Hill sits in the north of Aruma’s swag of peggings 200km west of the iron ore town of Paraburdoo and 5km north of the Paulsens goldmine.
The company says the location of the strikes in coarse greywacke on a shale-dolomite contact is in line with those found at the Mt Olympus and Paulsens gold projects.
The mothballed Mt Olympus produced 340,000 ounces of gold and was in 2003 estimated to still hold a 50,000-ounce reserve.
Black Cat Syndicate’s Paulsens mine has been in operation on-and-off since the 1930s, including by gold major Northern Star Resources which extracted up to 100,000 ounces of gold per year until 2017 from the site.
The high-grade underground resource has churned out 907,344 ounces at 7.3 g/t since 2005 but has been on ice since 2017.
Black Cat is targeting a 2024 restart decision based on a remnant mining operation of the 2.9Mt resource.
The company has also noted the lack of drilling for gold in the area and has its eyes on targets north, west and south of the Paulsens corridor.
Focus for Aruma now turns to mapping and chip sampling at Gossan Hill and exploration of the Mt McGrath site south of Paulsens where gold in veins has been reported.
The company has also received an early Christmas present via an $830,677 tax incentive refund to swell its coffers.
Aruma will be watching its neighbour’s developments with interest given its tenements surround Paulsens along and around the Nanjilgardy fault where the riches have come from.
As Paulsens owner Black Cat Syndicate says, it is highly unlikely its mine is the only significant deposit in the area.
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