Aurumin Limited (ASX AUN) is a high-grade gold mining company on the Australian Stock Exchange, concentrating on two Western Australian projects. The two projects are the Sandstone Gold Operations and the Southern Cross Operations.
The Sandstone Gold Operations comprises of Central Sandstone Project and the Johnson Range Project. The company purchased the Central Sandstone Project in early 2022 and laid the foundations for its Sandstone Gold Operations.
While the Southern Cross Operations include two historically significant high-grade production centres—Mt. Dimer and Mt. Palmer.
To create additional value for Aurumin ASX shareholders, the company is making significant progress in exploring its tenements and pursuing further acquisitions that complement its current emphasis.
AUN ASX shares are shining and have gained 50% after the company announced positive results of its drilling at the Central Sandstone Gold Project.
ASX AUN: 1H22 Key Financials
The Aurumin share price, the small cap gold stock, is trading at $0.14 and has gained around 50% in a single day after the announcement of positive results. The current market cap of the company is approximately 14.81 Million AUD.
- The company is at the pre-revenue stage, so there was no revenue in the first half of 2022.
- Its other income was $12,146.
- The exploration and evaluation expenditure was $1.8 million, more than double the same period last year.
- The company had a loss after tax of $2.9 million in 1H22.
- Its basic and diluted loss per ASX AUN share was $3.30.
- As of 31 December 2021, the company had cash and cash equivalents of $3.9 million.
AUN: Central Sandstone Exploration Update
Aurumin Limited’s Reverse Circulation (RC) and Diamond Drilling (DD) program’s first hole at its 100% owned Central Sandstone Gold Project has returned assay results.
The first hole was drilled as a pre-collar to a depth of 109.5m, and Aurumin used the diamond drilling tail to expand the hole to a depth of 582.5m. Tonalite intrusion was documented for 313 metres, with multiple evident gold deposits identified. After the main tonalite body was drilled, a mineralized basalt and tonalite hanging wall zone were also discovered.
The test findings indicated 344m @ 1.29g/t. Typically, grades exceeding 5g/t are considered high grades. However, there were some high-grade highlights at 16.1m @ 2.9g/t, but note that this was a large intersection.
AUN: Managing Director’s Remarks
According to Aurumin’s Managing Director Brad Valiukas, the company is pleased with the development of Sandstone. Discoveries are being made, and the 500koz Au Two Mile Hill underground deposit is being advanced with deep drills as they increase its tenement footprint.
From its first shot at Two Mile, they have got a fantastic score. After completing the 4th diamond drill hole and programme, Aurumin Limited is eager to see what the future holds.
This subsurface deposit is still a significant portion of the project and has the potential to support future production.
AUN: What Next?
Is this a good trend for the Aurumin Limited Gold Stock? Should you add ASX AUN shares on your to buy list?
Aurumin Limited intends to extend the exploration process. At Two Mile Hill, drilling is being done to expand and better define the current inferred underground Mineral Resource Estimate (MRE) of 14.2Mt @ 1.1g/t Au for 500koz Au. This recent news and forecast for Aurumin shows they will be able to achieve significant findings as they acquired their exploration license a few weeks ago.