Aurum Resources to ramp up drilling at Boundiali gold project following successful quarter

Aurum Resources (ASX: AUE) is preparing to further accelerate drilling activities at its 80%-owned Boundiali gold project in Côte d’Ivoire after another successful quarter.

Releasing its June quarterly report, the company informed shareholders it is on target to have six rigs in the field next month as it continues to expand its knowledge of Boundiali’s gold potential.

The addition of the new rig will see the company increase its drilling rate to approximately 10,000 metres per month in August 2024.

Diamond drilling program

The company’s upcoming activities at Boundiali will focus on scout and step back diamond drilling to follow up on existing targets and test new ones.

The accelerated drilling is aimed at producing an initial Boundiali mineral resource estimate in late 2024.

Aurum is also stepping up its preliminary metallurgical test work.

Metallurgical tests have so far delivered gold recoveries up to 99% from oxide ore and more than 93% for samples grading 0.25 grams per tonne gold or higher.

The company is planning to undertake further metallurgical studies to help establish and optimise processing flowsheets.

Strong finances

Aurum finds itself in a strong financial position to fund its plans to accelerate exploration at Boundiali.

During the quarter, the company received firm commitments from new and existing institutional investors for a $17 million two-tranche placement with similar support expected for an accompanying share purchase plan seeking to raise up to $3m.

Aurum had $10.8m in cash available at the end of June 2024, with $9.46m still to be received from the capital raise, subject to approval at a shareholders’ meeting to be held on 6 August 2024.

The funds are going fully into supporting Aurum’s aggressive gold exploration drilling at Boundiali.

Boundiali approval

Côte d’Ivoire’s Ministry of Mines, Petroleum and Energy recently approved Aurum’s ownership of the Boundiali exploration permit.

Aurum acquired its stake in the project in mid-November 2023 when it entered into a binding heads of agreement to acquire specialist West African drilling company PlusOr Global.

Initially using drilling equipment that came with the PlusOr Global takeover, the company enjoyed instant exploration success, giving it the confidence to add extra drilling rigs to its stable.