VM Drilling has won a tender at OzAurum Resources’ (ASX:OZM) Mulgabbie North Gold Project, 130km northeast of Kalgoorlie.
The mid-sized drilling company will be responsible for delivering “efficient, cost-effective” grade control and first pass exploration drilling services.
VM has started work on the 18km drill program, which will hopefully remove the need for traditional air core/rotary air blast work.
Reverse circulation drilling will target the Paleochannel Prospect within stage two pit designs and form a key component of the ongoing heap leach feasibility study.
VM agrees to receive fully paid ordinary shares in OzAurum as payment. At the time of publication the gold producer’s stock was trading at 11 cents per unit, which was 10% up since trading opened on 13 March.
OzAurum previously made a $4.1 million strategic placement to Forrestania Resources (ASX:FRS). That deal is promised to strengthen OzAurum’s balance sheet and help to advance “near-term production initiatives” at Mulgabbie North.
“Our previous drilling has delivered excellent shallow high-grade results, and this grade control program is designed to increase our confidence in that mineralisation within the stage two pit designs,” CEO and Managing Director Andrew Pumphrey says.
“With a strengthened balance sheet following our recent strategic investment by Forrestania Resources, ongoing heap leach plant refurbishment, and now the commencement of this drilling campaign we are building strong momentum as we progress toward a capital-light pathway to gold production,” Pumphrey adds.
OzAurum Resources is an Australian gold, lithium and rare earth elements exploration company with operations in Western Australia’s Kalgoorlie-Boulder region.
Write to Richard Szabo at Mining.com.au
Images: OzAurum Resources
