Junior explorer Aurumin has just wrapped up the first stage of auger drilling at its recently-acquired Central Sandstone gold project in Western Australia. A vehicle-mounted auger drill rig tested five near-mill targets in addition to a further 29 areas of interest.
The 467-hole program aimed to geochemically sample the interface between the covering sediments and bedrock and bolster its litho-geochemical database. Ultimately the work will help refine drill targets with the company expecting results in a few weeks.
The explorer says the original scope and coverage of the program were adjusted in response to the hard ground and inability to efficiently test areas of greater depth of transported cover with the auger rig. Sampling was completed at 29 of the initial 36 areas of interest. Alternative sampling strategies are being planned for the areas that were deferred.
The Sandstone project houses a sizeable resource of 22 million tonnes going 1.1 grams per tonne gold for a total 784,000 ounces with the company believing there is a lot of potential exploration upside.
Auger programs by the project’s previous owner – Middle Island Resources – were focused on the five near-mill geochemical targets. When Aurumin took the reins the fresh-eyed explorer identified a further 36 areas of interest.
In late 2021, the company purchased the project and processing plant package from Middle Island for $6m cash and $6m in Aurumin shares.
Interestingly Middle Island’s 2021 feasibility study into the project determined it would be cashflow positive, although to really get the project off the ground it needed additional mill feed. The additional ore would need to be derived from further open pit exploration, advancing underground deposits or accessing third party deposits.
Whilst there is plenty of room for exploration and extensions, Aurumin also has additional ounces about 150km to the south.
Drawing its 64,700 gold-ounce Johnson Range project into the fold would bring its total ounces in the area to more than 800,000.
Aurumin has already run the numbers and concluded it would cost $30 per tonne to truck ore from Johnson Range north to Sandstone.
The company can further boost its bottom line by upgrading the existing 500,000 tonnes per annum plant to 750,000tpa.
A little down the line, however, it is also eyeing the possibility of Sandstone as a low-cost regional hub where it would regionally reel in dirt to feed a plant with a capacity of over 1.2Mtpa.
Interestingly the combined gold inventories of Aurumin’s Sandstone resource and surrounding players in the region amount to nearly six million ounces of gold – giving the region a serious glow.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
