Aurumin (ASX:AUN) has started multiple dialogues with interested parties around the iron ore from its Sandstone Operations, located 520km northeast of Perth.
Managing Director Brad Valiukas says the talks around the iron ore is “clearly something that could accelerate an operational restart”.
The close proximity of the iron to some of the company’s gold deposits, as well as the potential value of the iron ore itself, could significantly alter the project economics, Valiukas adds.
In an update on exploration activity at its 100% owned, 946,000oz gold Sandstone Operations, Aurumin’s Managing Director says: “We remain focussed on generating the critical mass required for future production at our Sandstone Operations, targeting additional open pit material to support an operational restart.”
“This next round of drilling will look to expand the existing gold Resource at Plum Pudding, flesh-out some of the confirmed new gold targets on the mining leases and step further afield to the Birrigrin Project and Dandaraga prospect to target some potential higher-grade sweeteners.
“As we consider the iron ore, it’s a bonus that some of our targets are already drilled, never assayed for iron and have the pulps stored on site. We have selected samples from 19 holes that overlap with what we could have done as first pass drilling, following up the surface sampling and modelling.
“This is a cost-efficient assessment of the iron potential suggested by outcrop and puts us in a position to move quickly subject to results We will finalise the next campaign as a whole once the now in transit samples are assayed.”
Aurumin is focused on the Sandstone region in Western Australia. The Sandstone Operations were cornerstone by the acquisition of the Central Sandstone Project by in early 2022.
The Central Sandstone Project comprises an 881,300-ounce gold mineral resource, significant project infrastructure and an expanding tenement footprint where the Company aims to support a gold mining operation in the future.
The company’s Johnson Range Project has a mineral resource of 64,700 ounces at a grade of 2.51g/t Au, located midway between Southern Cross and Sandstone.
The Birrigrin Project area was added in late 2022 and is 70km north of the Central Sandstone Gold Project. The Project has 39 mapped shafts dating to the early 1900s with recorded production grades up to 196g/t Au.
The Central Sandstone Project also has DSO iron ore potential, that the company is looking to advance in parallel with the gold resources.
Write to Adam Orlando at Mining.com.au
Images: Aurumin
