Aurumin (ASX:AUN) has entered into dialogue with several interested parties regarding iron ore from its sandstone operations, located 520km northeast of Perth.
Managing Director Brad Valiukas said the iron ore talks “can clearly accelerate the restart”.
Valiukas added that the iron ore’s proximity to some of the company’s gold deposits, and the potential value of the iron ore itself, could significantly change the economics of the project.
Giving an update on exploration activities at the company’s 100%-owned 946,000 oz gold sandstone operation, Aurum Inn’s managing director said: “The company remains focused on generating the critical mass required for future production at the sandstone operation and is targeting additional open pit material to support the restart of operations.”
“The next round of drilling will expand Plum Pudding’s existing gold resource, detail some of the new confirmed gold deposits with mining rights, and extend further afield to the Billigrin Project and the Dandaraga Prospect to target deposits with higher-grade sweetener potential.”
“When we think about the iron ore, part of the target has already been drilled and not assayed for iron, and the fact that the pulp is stored on-site is a bonus. We have selected samples from 19 holes that overlap with what we were able to conduct as a first stage drilling, following surface sampling and modelling.
“This will provide a cost-effective assessment of the iron potential implied by the outcrop and position us to act quickly depending on the results. We plan to conclude the entire upcoming campaign once the samples currently in transit have been analysed.”
Aurumin is focused on the sandstone region of Western Australia. The sandstone business was anchored by the acquisition of the Central Sandstone project in early 2022.
The Central Sandstone Project consists of an 881,300 ounce gold mineral resource, significant project infrastructure and an expanding mining area where the Company intends to support future gold mining operations.
The company’s Johnson Range project is located midway between Southern Cross and Sandstone and holds a Mineral Resource of 64,700 ounces at 2.51 g/t gold.
The Billigrin Project area will be added in late 2022 and is located 70km north of the Central Sandstone Gold Project. The project has 39 mapped shafts dating back to the early 1900s with recorded production grades of up to 196 g/t Au.
The Central Sandstone Project also has DSO iron ore potential, which the Company aims to advance in tandem with its gold resource.
Contact Adam Orlando at Mining.com.au
Image: Aurumin
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