Aurumin completes four-hole lithium exploration program at Mt Palmer

Aurumin (ASX: AUN) is eagerly awaiting assay results after successfully completing a four hole lithium exploration program at the 100% owned Mt Palmer project 40km southeast of Southern Cross in Western Australia.

The four diamond holes at Mt Palmer targeted lithium bearing pegmatites and the program was successfully completed for a total of 994m drilled.

The company is currently undertaking drill core logging and preparing samples for assay tests.

“Mt Palmer is prospective for lithium mineralisation and has been unfinished business for the company since we announced results from orientation drilling in June last year. We are pleased to have completed drilling and look forward to updating the market with the results,” Aurumin managing director Brad Valiukas said.

The Mt Palmer lithium program was designed to test a geochemical multielemental anomaly which produced lithium results of up to 146ppm and resampled (historical) drill spoils returning tantalum results up to 391ppm.

Vertical drilling design

The program’s diamond drilling tails were designed to be drilled vertically, to a nominal depth of 250m, providing the company with the opportunity to test for interpreted broad-flat lying pegmatites.

Previous RC drilling undertaken at Mt Palmer was found to have intercepted multiple flat lying pegmatites, extensive pathfinder elements and low-level lithium.

However, that program was halted short of key targets as it was unsuccessful in drilling below approximately 100m due to ground conditions and water ingress.

EIS funding support

Earlier this year the company was awarded Exploration Incentive Scheme (EIS) co-funding of up to $150,000 by the WA Department of Mines, Industry Regulation and Safety (DMIRS).

The EIS is a Western Australian State Government initiative, operated through the DMIRS that aims to encourage exploration in Western Australia for the long-term sustainability of the state’s resources sector.

The EIS funding was evaluated under a competitive process and Mr Valiukas said the company’s success provided excellent recognition of the lithium potential at Mt Palmer.

Aurumin believed it was the only successful applicant for lithium exploration in that funding round.

Gold hunt focus

In mid-June, Aurumin confirmed it had kicked of activity for its planned development of the Mt Dimer project near Southern Cross in WA.

A historical high-grade production centre, Mt Dimer produced over 125,000 ounces of gold, including open pit and underground production of 600,000 tonnes at 6.4 grams per tonne gold.

The initial targets are the small, but high-grade, Lightning and Golden Slipper deposits which are located on granted mining leases, with road access, airstrip and nearby camp facilities.

Two phases of development are proposed for Mt Dimer and pre-development activities have commenced for a Phase 1 operation. Phase 1 operations are intended to be on a toll-treat or ore sale basis.

The company is currently focused on work to lock in toll treatment capacity or an ore purchase agreement, mining costs and engage with the government to finalise permitting requirements.

This will allow the company to finalise cut-off grades for resource reporting and design purposes and update the market as appropriate, including specific timelines.

Sandstone the main target

The company’s main development target is the Sandstone Gold operations it acquired in early 2022, located to the north of Southern Cross.

The Sandstone project contains an 881,300 ounce gold mineral resource, significant project infrastructure and an expanding tenement footprint where the company aims to support a gold mining operation in the future.

It also holds the Johnson Range project with a mineral resource of 64,700 ounces at a grade of 2.51 g/t gold, located midway between Southern Cross and Sandstone.

Aurumin added the historic Birrigrin Project in late 2022, located 70km north of the Central Sandstone project.

Research has identified 39 mapped shafts dating to the early 1900s and recorded production grades up to 196 g/t gold in the area.