Aruma Resources acquires IOCG-uranium projects in South Australia and Queensland
Aruma Resources (ASX: AAJ) has announced it will acquire the Wilan iron oxide-copper-gold-(IOCG)-uranium project in South Australia, as well as the Fiery Creek and Bortala copper projects in Queensland.
The company secured the projects from NHM Holdings, the holding vehicle for private explorers Rab Resources, New Horizon Metals and Wilan Resources.
The projects are believed to have potential for both copper-gold (stratiform and IOCG), with Wilan additionally offering playa lake and paleochannel uranium targets.
Deal Consideration
Consideration for the deal will consist of 26.5 million fully-paid Aruma shares plus 24.5m non-transferable options, exercisable at no cost into one Aruma share once Wilan drilling approvals have been received.
A further 28m non-transferable options, each exercisable at no cost into one Aruma share, will be issued once Aruma reports an aggregate intercept in one drill hole at any project of 3 metres grading more than 600 parts per million uranium oxide, or at least 20m at more than 0.8% copper or metals equivalent.
Aruma will also pay a 2% net smelter royalty to NHM shareholders for any minerals extracted and sold from the tenements.
High-potential portfolio
Aruma’s managing director Glenn Grayson said that this pivotal acquisition offers a portfolio of high-potential exploration projects in two of Australia’s pre-eminent and active mineral precincts.
“We are excited about the company-changing potential of this acquisition,” he said.
“Our ability to acquire this portfolio at a time of prevailing strength in these commodity markets, underpinned by a bullish long-term outlook, could be transformational.”
“The combination of quality exploration assets with high-demand commodities in active Tier-1 mineral belts and progressive mining jurisdictions is the right fit for Aruma.”
He mentioned that the company had planned targeted and systematic field work across the new projects to define priority drill targets and unlock their full IOCG, uranium and copper potential.
Wilan location
The Wilan project is situated on the eastern side of South Australia’s prolific Gawler Craton, covering a total area of 1993 square kilometres.
The minerals belt is host to the Prominent Hill copper project and the world’s largest single source of copper-gold-rare earths and uranium at Olympic Dam, both owned by BHP Group (ASX: BHP), as well as the Paradise Dam prospect owned by Copper Search (ASX: CUS).
Mr Grayson said Aruma would be exploring for IOCG mineralisation at Wilan, as well as potential sedimentary-hosted copper mineralisation.
Detailed gravity surveys will be conducted to develop drill targets and will be followed by geophysical surveys with the aim of identifying conductive bodies for first-phase drilling.
Uranium target
A playa lake uranium target is located in the west of the Wilan project area.
Playa-type deposits tend to be shallow and laterally continuous, making them relatively easy to explore and exploit.
The target was identified through a radiometric anomaly with a coincident helium hyperspectral response, where the helium is produced by the decay of uranium in a lake area.
The radiometric and helium anomalies occur over an area of approximately 4 kilometres by 1.5km that will also be drill tested for uranium anomalism.
Aruma also plans to further evaluate other elevated areas for their exploration potential.
Mt Isa projects
The Fiery Creek and Bortala projects are located in an under-explored part of the world-class Mt Isa copper belt.
The belt hosts multiple significant copper mines including Mount Oxide, operated by True North Copper (ASX: TNC), Lady Loretta (Glencore) and 29Metals’ (ASX: 29M) Capricorn.
Global blue-chip miners such as Rio Tinto (ASX: RIO), Anglo American and Teck Resources also own substantial acreage in the region.
Bortala is interpreted as being prospective for both breccia copper deposits and uranium mineralisation.
The geology of Fiery Creek is analogous to the units that host copper deposits within the western fold belt of the Mount Isa inlier.
Mr Grayson said Aruma would adopt the Lady Loretta and Esperanza formations as a stratigraphic model to explore for a stratiform copper deposit within the project area.