Aurumin completes first-pass drilling campaign at Sandstone gold project
Aurumin (ASX: AUN) has completed a first-pass drilling campaign at new targets within the Central Sandstone gold project, located 520 kilometres north of Perth in Western Australia.
The campaign comprised 38 reverse circulation holes for a total of 3,888 metres at seven open pit targets.
Five of the holes tested extensions at two of the project’s existing open pits.
Equity agreement
Drilling was carried out by Perth-based contractor and Aurumin shareholder Topdrill, after the two companies renewed an equity agreement in March.
The agreement allows Aurumin to satisfy up to 50% of drilling costs invoiced by Topdrill through the issue of ordinary Aurumin shares up to a maximum of $1 million.
It is expected to give Aurumin the flexibility to increase drilling while preserving its cash reserves.
Multiple targets
The first-pass campaign targeted multiple depositional models as well as porphyry and intrusive-hosted vein, banded iron hosted and structural shear-style hosted mineralisation in mafic and ultramafic units.
All targets are on the Sandstone mining leases, within 3km of the processing plant footprint.
Samples are currently being prepared for transport to the laboratory and follow-up drilling will be fast-tracked subject to results.
Proceeding to plan
Managing director Brad Valiukas said the campaign had proceeded to plan.
“Drilling has been efficient and completed ahead of schedule,” he said.
“Priority and composite samples will be sent to the lab this week and they will be followed up with the next round of drilling.”
“This campaign directly aligns with our focus on generating the critical mass required for future production [from Sandstone], starting with open pits.”
Project cornerstone
The Sandstone gold operations are the cornerstone development of the historic Central Sandstone project, which Aurumin acquired in early 2022.
Central Sandstone comprises an 881,300-ounce mineral resource, significant project infrastructure and an expanding tenement footprint where the company aims to support a gold mining operation in the future.
In March, Aurumin attracted $2.5m in a share placement that will remove a convertible note from its books and free up its finances to focus on Sandstone’s development.