High grade Aurumin iron in WA Mid West triggers JV | Australian Markets

Aurumin Limited’s scout reverse circulation drilling program – together with re-assays of pulps from earlier third occasion drilling – has thrown up some high-grade iron hits at its Central Sandstone project in Western Australia’s Mid West area, together with a best 10-metre intercept at 62 per cent iron from 1m.

The 2000m drill marketing campaign on two of Aurumin’s three granted mining leases was half of non-public company Newcam Mineral’s due diligence earlier than the company workouts its option to enter into a three way partnership with Aurumin.

The drilling program targeted on high-grade direct delivery ore (DSO) iron in seven precedence goal areas recognized from outcropping-enriched iron formations, backed up by rock chip pattern outcomes assaying higher than 60 per cent iron.

Aurumin’s focused resampling program drew from laboratory pulps from a reverse circulation drilling program undertaken by explorer Middle Island Resources in 2019 and 2022. Aurumin’s geologists chosen the pulps for re-assay from the unique geological logging and a review of the accessible chip trays.

Analyses from the drilling and pulp re-sampling have returned important proof of shallow high grade iron, with 5 highlights together with 10m at 62.12 per cent iron from 1m, 15m at 59.24 per cent iron from 14m, 9m at 60.75 per cent iron from 3m, 8m going 60.42 per cent iron from 10m and 8m assaying 59.93 per cent iron from 10m.

The analysis produced encouraging outcomes with low ranges of deleterious phosphorous and silica from three of the targets, figuring out high-grade iron mineralisation at depths of much less than 30m.

The work proves the existence of iron at DSO grade within easily-mineable shallow depths, at low dip angles and over widths of up to 15m downhole, that are nearly true thickness.

The program’s beneficial consequence signifies potential for shallow, low strip-ratio open pit mining and has inspired Newcam to increase the three way partnership option till October 8.

The corporations will even increase the scale of the option by 241 sq. kilometres throughout 10 further tenements which might be believed to carry iron potential. The further ground is both granted, awaiting approval or is subject to different acquisition agreements.

The company says the potential three way partnership with Newcam may very well be price up to $7 million in project funding, would speed up exploration exercise at web site and will de-risk Aurumin’s total Central Sandstone project.

Aurumin and Newcam inked the three way partnership deal final October, which gave Newcam an unique six-month option to conduct due diligence and earn a 50 per cent curiosity in the iron rights at Central Sandstone.

Aurumin pocketed a helpful $500,000 money from Newcam upon granting the option and agreed to fund 50 per cent of the on-ground exploration prices earlier than the option expired.

When the option is exercised, Newcam pays Aurumin a additional $500,000 and in addition present a loan of up to $5 million to the three way partnership to fund manufacturing start-up actions, which will probably be repaid from working revenue.

The deal additionally supplies for Newcam to pay Aurumin an further $1M success consideration if the three way partnership delivers a JORC-compliant mineral useful resource estimate of more than 3 million tonnes at an average grade of 60 per cent iron.

Aurumin’s Central Sandstone project, 520 kilometres northeast of Perth, consists of three granted mining licences, a 500,000 tonne per yr carbon-in-leach gold processing plant that requires refurbishing, a permitted tailings storage facility, bore discipline and camp services.

So far, all of the doubtless mineable high-grade iron mineralisation has been recognized within the company’s granted mining leases that are close to main roads.

The mixed benefits of its granted mining leases, historic datasets and current camp and street infrastructure will nearly definitely help the businesses to develop a mining operation, facilitate the mandatory approvals and cut back the project’s total development prices and timeline.

These constructive outcomes have been generated from our first iron ore exploration drilling program and show the potential of the Central Sandstone project for DSO iron ore. The company could be very happy to develop and prolong the JV alternative with Newcam, an superb associate with which to quickly commercialise any financial DSO iron ore recognized by means of the proposed JV.

The consequence of the drilling and sampling program has prompted Aurumin to undertake a more intensive review of its different Sandstone ground for extra DSO iron potential.

Some of Aurumin’s ground outdoors its mining centre stays in software standing and encouragingly, early scout visits have recognized floor iron mineralisation as a hematite-enriched banded-iron formation (BIF) and as detrital iron pisolites that might characterize immature paleochannels or caps on attainable BIF.

The work has already resulted in an further 5 areas being recognized which exhibit a number of BIF models subject to deformation.

Recent discipline reconnaissance carried out on some of the prospects outdoors the mining centre has confirmed further outcropping enriched BIF models. Rock chip sampling throughout a number of prospects has returned grades of higher than 60 per cent iron, whereas the detrital iron show decrease grades round mid-50 per cent iron.

Aurumin’s speedy plans for its iron program at Sandstone embody ramping up its discipline work to conduct prospect mapping and rock chip sampling to unveil new targets for future drilling, from which the company goals to construct up its DSO iron useful resource stock to the purpose the place it is going to maintain a full-on iron operation.

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