Aurumin Ltd (ASX:AUN) has completed the acquisition of Sandstone Operations Pty Ltd from Middle Island Resources Ltd (ASX:MDI).
The Central Sandstone Project contains a JORC 2012-compliant mineral resource of 22 million tonnes at 1.1 g/t for 784,000 ounces gold in open pit and underground estimates.
This project includes a non-operating 500,000 tonnes per annum carbon-in-leach (CIL) processing plant, associated infrastructure, operating licences and camp facilities in the nearby town of Sandstone.
"Opportunity to add value"
Aurumin managing director Brad Valiukas said: "The Sandstone acquisition is a significant step for the company, with an existing mineral resource and substantial infrastructure.
“Sandstone provides an excellent opportunity to add value as we advance the project and build a mining company.
"The 784,000 ounce Central Sandstone mineral resource will be added to by our existing 65,000-ounce Johnson Range Project, together becoming the starter assets for our Sandstone Operations.
"In addition to the existing mineral resource base, there are a number of exploration targets that we are very keen to start on-ground works on and expect to be in the field very shortly with surface works and site preparation.
"Our top priority at Sandstone will be advancing the Shillington–Two Mile Complex and defining the underground potential. Permitting and plans for drilling are well underway.
"We appreciate Middle Island's commitment to the transaction and sub underwriting participation, and we look forward to having them as a shareholder as we take Sandstone forward."
Sandstone operations
The project is around 520 kilometres northeast of Perth and is on a sealed highway between the mining towns of Mt Magnet and Leinster in the East Murchison Mineral Field of Western Australia.