Latest news with #AuruminLimited
West Australian
11 hours ago
- Business
- West Australian
Kula, Aurumin buoyed by up to 1-ounce-per-tonne WA drilling results
Kula Gold has nailed good gold in recent 1-metre re-assays of 3m composite results the company received two months ago from its joint venture Mt Palmer gold project, near Southern Cross. A best updated hit of 18m at 4.4 grams per tonne (g/t) gold from surface includes 2m assaying 32.3g/t gold from 15m. The original intercept, based on 3m composite sampling, delivered a best result of 18m at 4.7g/t gold from surface, including 3m at 23.4g/t gold. The re-assaying relates to April results from Kula Gold's Mt Palmer gold project, which Kula owns in an 80:20 joint venture with fellow ASX-listed explorer Aurumin Limited. The second-best intercept produced from the 1m re-assays delivered 7m going 7.7g/t gold from surface, including 3m running 17.2g/t gold from 3m. The original 3m composite sampling analysis last April delivered 6m at 8.1g/t gold from surface, including 3m at 15.3g/t gold, which also points to a fair representivity of the faster composite sampling approach for reconnaissance. A third-best 3m composite gave up 12m at 2.3g/t gold from 15m, which included 6m assaying 3.5g/t gold. The 1m re-assay produced 4m at 1.4g/t gold from 15m and 7m at 3.5g/t gold from 20m. Explorers often undertake composite sampling to speed up drilling programs, reduce consumable use and reduce assay costs, especially where knowledge of the environment being drilled is uncertain. If an explorer gets the feeling from initial results that it is 'in the zone', it may dispense with the composite analyses and go straight to smaller sample intervals, which are typically 1m in Australian mineral exploration. Comparing Kula's 3m composites and later 1m re-assays suggests the 3m composites are fairly representative of mineralisation for scout drilling. Overall, the original drilling came up with a bunch of solid gold intercepts, which reinforce Kula's view of Mt Palmer's potential to come up with the goods. Which made it logical for Kula to examine the distribution of gold mineralisation and pick out localised signs of grade enhancement, especially within or near known structural influences. A sniff of mineralisation showing up in a composite almost always needs to be revisited to better resolve what is going on, and the longer the composite run is, the more this observation applies. The shallow depth results so far show early potential for low-cost open-pit mining, which could change depending on the drilling in progress, as well as its orebody wireframing, modelling and economic studies. Kula is continuing with its analytical program on selected 1m splits, while stage two drilling is underway. The company is leaning toward non-destructive photon analysis as its preferred assay method, as it offers a bigger and more representative sample size. Photon assay is used for rapid, non-destructive analysis of gold, silver and other elements in geological and process samples. The technology is capable of faster, more environmentally friendly analysis than traditional fire assay and is often used for high-grade and/or coarse gold, which can be difficult to accurately interpret due to the 'nugget effect'. The new method is non-destructive, which means a sample can be re-used for repeat or alternative analyses and other investigations, such as multi-element work and metallurgy. Kula already sees benefits from using the new method, particularly when close-spaced drill holes return wildly differing gold grades from the same zone or when a hole analysed by fire assay misses what later turns out to be significant gold. The old Mt Palmer mine produced more than 150,000 ounces at 15.9g/t gold from 1934 to 1944. It closed partly due to labour and materials shortages during World War II, became flooded and was never reopened. The old show has seen little systematic exploration since then, until Kula reopened it and launched a more concerted investigation, invigorated by the buoyant gold price. Is your ASX-listed company doing something interesting? Contact:
West Australian
19-05-2025
- Business
- West Australian
Aurumin moves closer to cashflow after JV with mining contractor
Aurumin Limited is a big step closer to early cashflows by agreeing to enter into a new joint venture with contract miner Newcam, which will spend up to $4 million to farm into two of its gold projects. One project has an almost shovel-ready 64,000 shallow ounces of gold that could end up being a quick cash cow for the JV partners, courtesy of toll treating. Aurumin has also landed a million dollars from Newcam after agreeing to sell the non-gold rights at another of its Western Australian gold projects. The deal with Newcam has three legs to it – Newcam can earn up to 50 per cent of Aurumin's Johnson Range project that already has the 64,000-ounce deposit. It can also earn up to 50 per cent of Aurumin's Mt Dimer gold project, which is littered with interesting gold targets. Newcam must spend $4M across Mt Dimer and Johnson Range to earn its 50 per cent. Remarkably, Aurumin can elect to be free carried all the way to net profit – something that could come sooner rather than later from the Gwendolyn deposit at Johnson Range. Gwendolin already has 64,700 ounces of gold going 2.51 grams per tonne (g/t) gold within cooee of a number of mills. And the kicker is that Newcam comes replete with its own heavy mining equipment and mining know-how, giving rise to the possibility of early cash flows for the partners. The $1M cash injection will come courtesy of the sale of Aurumin's non-gold mineral rights, primarily iron ore, at its flagship Sandstone project in WA. Aurumin previously did a deal with ASX-listed Beacon Minerals, run by Kalgoorlie identity Graham McGarry, on its mining leases at Mt Dimer, which will see it pick up a 2 per cent royalty on gold production above 12,000 ounces on that ground. It still holds a lot of exploration ground around that land that has seen very little modern-day exploration, despite it being a historical mining region that once pumped out 125,000 ounces at an impressive head grade of 6.4g/t gold. The company's core focus remains on its Central Sandstone's 885,800-ounce gold resource, however, the deal with Newcam, particularly as it relates to the Gwendoline deposit, cannot be overstated in a gold price environment at about $5000 an ounce. Fellow ASX-listed company Auric Mining did a similar toll treating deal with a private contractor at its Jeffries find deposit near Norseman and pulled about $100M worth of gold out of it that was toll treated near Coolgardie. With a fresh $1M cash influx, a fully funded new joint venture and a sharpened focus on Central Sandstone, with upside from both Johnson Range and Mt Dimer, Aurumin is starting to take on a remarkably different complexion and could be on the cusp of actually making some money. Is your ASX-listed company doing something interesting? Contact:
