Aruma Resources (ASX:AAJ) has found itself in unique set of circumstances following the discovery of rare earth elements while exploring for precious metals in a prospective gold region of Western Australia.
The Perth-based company will descend into Singapore next week to present at the Future Facing Commodities conference where Managing Director Glenn Grayson will discuss the company’s unique greenfields exploration ground in Western Australia.
Held from 4-6 April, the event will feature keynotes, panels, and presentations on commodities such as lithium, uranium, rare earths, among others.
Speaking to Mining.com.au ahead of the trip, Grayson says Singapore is emerging as a source of capital for the resource industry and the conference is set to unite investors with exploration and mining companies focused on the energy transition.
“This conference is the first one Aruma has done that exposes us to the Southeast Asian market. This will expose Aruma to a whole new set of investors with potentially very deep pockets.”
The MD adds such the event offers an ideal platform to convey to investors that Aruma has “exciting projects with a diverse commodity target”. The company currently has 5 projects in Western Australia – a lithium asset and 4 gold projects.
While the company has predominantly been exploring for gold, Grayson says it has uncovered rare earth elements (REEs) at its 100% owned Saltwater Gold Project. Under the common models in which REEs are generally found, those associated with sedimentary rocks can also be associated with gold and base metals, meaning uncovering REEs is not actually that rare.
The MD adds, having exposure to such a future facing commodity is an exciting proposition for Aruma.
“The lithium has given Aruma great exposure in the current lithium market. The REE targeting at a very under-explored area at Saltwater, and with the banking turmoil, the gold focus at Salmon Gums has created a unique set of circumstances that places Aruma in a really good place for success.
We peg ground based on our understanding of the geology and the model of mineralisation that we are wanting to explore for. Great work does not always return orebodies if the ore isn’t in the ground. But pegging the right ground for the wrong reason can happen. The good work is recognising what in fact could be there and changing to explore for other minerals or commodities. I don’t believe in keeping blinkers on in search for one commodity when other value could be there.”
“I don’t believe in keeping blinkers on in search for one commodity when other value could be there”
Grayson notes that it is not uncommon to discover REEs when exploring for gold within sedimentary rocks. The chemistry of the fluids that scavenge gold from the sedimentary rocks also scavenge (or dissolve) other metals. The fluid could be fertile with multiple elements and it is the reaction of the fluid during deposition of the metal and the interaction with the final host rock that defines which mineral or commodity is deposited.
On 15 February, Aruma reported it will aggressively pursue the REE potential at the Saltwater Project in the Pilbara region of Western Australia. The company plans to undertake a targeted fieldwork program at Saltwater designed to position Aruma with a first mover advantage in what is an emerging REE province.
The Saltwater Project consists of 4 granted Exploration Licences (EL52/3818, EL52/3846, and EL52/3857) over a total area of 450km-square and is situated some 100km south-west of the regional mining centre of Newman.
The project was originally pegged by Aruma in 2020 for its gold prospectivity, based on the reactive stratigraphy adjacent to the Nanjilgardy Fault within the project area that controls about 6 million ounces of known gold mineralisation along its entire strike.
Dreadnought Resources (ASX:DRE) has accumulated a major landholding at its Bresnahan REE Project immediately adjacent to Saltwater where significant initial light and heavy REE results have been delivered.
Write to Adam Orlando at Mining.com.au
Images: Aruma Resources Ltd
