Aruma Resources Ltd (ASX:AAJ) has significantly expanded its Tillex Copper-Silver Project in Ontario’s Timmins mining district through the acquisition of 94 adjoining mineral claims, while securing firm commitments for a $3.5 million placement to fund an accelerated exploration program.
The acquisition adds around 16 square kilometres of ground immediately surrounding the existing project, increasing the total Tillex landholding to about 18.6 square kilometres and extending the interpreted prospective Tillex trend to around 2.4 kilometres.
The expanded tenure also brings additional known copper occurrences, historical gold anomalies and largely untested electromagnetic conductors into Aruma’s portfolio, materially increasing the area available for follow-up exploration.
At the office, Aruma has received commitments to raise approximately $3.5 million before costs through a 2-tranche placement priced at $0.0045 per share.
Expanded Tillex Project area showing existing project area (red) and the newly acquired ground (black shaded area), with known mineral occurrences in the newly acquired claims.
Expands Tillex growth opportunity
Aruma is acquiring the claims from private Canadian explorer Good Mining Exploration Inc, consolidating its control over interpreted extensions of the northeast-southwest geological trend hosting the Tillex mineralisation.
The new claims wrap around the eastern and southern margins of the existing project and provide control over prospective extensions of structures targeted for copper mineralisation.
The expansion comes as Aruma is already drilling aggressively at Tillex.
Phase 2 diamond drilling of around 3,600 metres began in July and is targeting southwest strike and depth extensions of the high-grade copper-silver system identified during the company’s maiden drilling campaign.
Phase 1 comprised 1,093 metres of diamond drilling and returned broad, shallow copper-silver intersections, including 89 metres at 2.04% copper and 12.31 g/t silver from 38.8 metres, including 16.87 metres at 4.02% copper and 16.85 g/t silver.
Other results included 87 metres at 1.99% copper and 12.63 g/t silver from 30 metres and 59 metres at 1.91% copper and 8.80 g/t silver from 38 metres.
New claims add copper and gold targets
The newly acquired ground includes the Falcon Prospect, about 1.7 kilometres southwest along the Tillex trend, where limited historical drilling encountered copper mineralisation.
Historical hole CUR35-02 intersected 1 metre at 0.49% copper from 184 metres and 2 metres averaging 0.12% copper from 190 metres. Aruma said only 2 known holes have tested Falcon, leaving scope to investigate the mineralised system along strike and at depth.
The acquisition also adds the Russell Creek copper occurrence and several historical gold targets.
At Foster Farm, historical government sampling returned 2,200 ppb gold from a till sample, while the Watabeag prospect contains reported sulphide mineralisation, quartz-carbonate veining and alteration but has seen little documented exploration since the 1980s.
Aruma managing director Grant Ferguson said the acquisition transformed the scale of Tillex and substantially expanded the company's pipeline of copper and gold exploration opportunities.
“The new claims extend the interpreted strike length of the targeted Tillex Project structural and geological positions to approximately 2.4 kilometres, significantly increasing the Project’s expansion potential.”
Expanded Tillex Project area showing existing project area (black) and newly acquired ground (yellow), with known mineral occurrences and historical drilling collar locations.
$3.5 million placement backs exploration push
The first tranche will comprise 98 million shares and raise $441,000, while a second tranche of about 679.78 million shares will raise approximately $3.059 million, subject to shareholder approval expected to be sought in September.
Chairman James Moses also intends to subscribe for a further $50,000 of shares on the same terms, subject to shareholder approval.
Funds will primarily support ongoing Phase 2 drilling at Tillex, acquisition costs, geophysical and geochemical exploration across the expanded project and general working capital.
The financing follows a June quarter in which Aruma said it was in advanced discussions over additional funding to complete its planned exploration program.
Next steps
Exploration of the newly acquired claims is scheduled to begin during the current quarter, starting with field reconnaissance and sampling.
Aruma also plans airborne magnetic surveying, geochemical sampling and follow-up electromagnetic surveys before ranking priority copper and gold targets for drilling.
In parallel, Phase 2 diamond drilling is continuing across the existing Tillex system, with assay results expected progressively as Aruma works to expand the known mineralised footprint and advance the project toward a maiden mineral resource estimate.