WA drilling finished in next step towards | Australian Markets

Aurumin Ltd has wrapped up a 54-hole reverse circulation program at its Central Sandstone project in Western Australia’s Mid West area, designed to check a clutch of high-priority iron-rich prospects which might be key to a proposed unique option settlement with personal entity Newcam Minerals.

The drilling program, for 1826 metres, zeroed in on seven precedence targets recognized by detailed floor mapping that laid out a collection of banded-iron formations up to 40m broad over a 6-kilometre strike.

Earlier rock chip sampling over the outcropping formations netted grades of up to 67 per cent iron alluding to the potential for the project to provide direct transport iron ore.

The precedence goal areas are characterised by shallow dipping banded iron formations with high-grade hematite close to the present infrastructure. Conveniently, the project space lies on a pre-existing transport route from different working iron ore deposits within the area.

The latest samples are being ready for laboratory evaluation, with the outcomes anticipated in late March. Aurumin can be going to re-assay historic pulps the place out there in its precedence goal areas.

The drilling marketing campaign is a component of a due diligence course of Newcam is enterprise to resolve whether or not it is going to take up an option to kind a three way partnership for the iron rights over three mining leases within Aurumin’s Central Sandstone project, which is 495 kilometres east of Geraldton.

The potential three way partnership with Newcam may very well be value up to $7 million in project funding and can speed up our exercise, take away logistical hurdles for export and de-risk the project general. Importantly for Aurumin shareholders, by joint venturing the iron ore we keep far more upside and potential revenue in comparison with a royalty-based transaction.

Newcam already mines and exports iron ore within the Mid West area from the Mt Gould and JWD Wiluna mines by means of to the Port of Geraldton, the place the company has already established site-to-port haulage routes, a long-term lease on bulk storage capability and entry to ship loading.

The 2 corporations signed a deal in October final yr giving Newcam a six-month option on a 50 per cent curiosity within the iron ore rights on the Central Sandstone project for a $500,000 upfront cost. Newcam pays a additional $500,000 if it workout routines the option and stump up a $5 million loan to begin up manufacturing. The money could be repaid from working revenue.

The personal company will throw a additional $1m into Aurumin’s bank account if a 2012 JORC-compliant useful resource is launched for more than 3 million tonnes grading an average 60pc iron. That may very well be useful fillip for Aurumin, which has a portfolio of WA initiatives the place it’s on the hunt for gold.

It is usually paying for half of the agreed drilling program.

Newcam makes for a strategic bedfellow as Aurumin appears so as to add worth to its Central Sandstone Venture, which additionally hosts an 885,000-ounce gold useful resource, a 500-kilotonne each year carbon in leach processing plant in need of refurbishment, permitted tailings storage, a bore discipline and camp services.

An iron ore price hovering between $90 per tonne and $120/t over the previous yr has in all probability dampened the keenness of even essentially the most stoic iron ore explorer. Compared, the gold price is continuous its stellar run closing at $4623 in yesterday’s trade.

Aurumin says it needs to advance each its gold and iron ore initiatives in parallel. Commodities might be difficult – however the junior explorer appears to be enjoying it sensible with a starter on either side.

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