Aurumin Ltd (ASX:AUN) has brought a highly prospective exploration licence into the fold at its Central Sandstone Gold Project in WA.
The precious metals explorer inked a binding heads of agreement with a private company to acquire the exploration tenement, technically known as E57/1140, and expand the footprint of its wholly-owned gold camp.
Gaining golden ground
Tenement E57/1140 lies within the Youanmi Terrane Greenstone Sequence, a region with tried and true exploration and production success.
To date, more than 1 million ounces of gold have been produced regionally at Sandstone.
Despite this, Aurumin’s new tenement has seen relatively little exploration work and remains underexplored.
In fact, all the current known drilling is wide-spaced, meaning it’s predominantly first-pass exploration work.
As a result, the gold explorer is pulling together data across the project area, including from open file reports and the historical Troy Resources database, which Aurumin inherited as part of the tenement buy.
To complete the acquisition, Aurumin will hand over 500,000 AUN shares — valued at a collective $75,000 based on a 15-cent share price — and a 1% net smelter return royalty, which covers any gold it might produce on the tenement down the line.
“Critical mass for future production”
Speaking to the deal, Aurumin managing director Brad Valiukas said: "We are pleased to be expanding our footprint in the Sandstone region with this granted tenement, nearby to our existing 784,000-ounce gold Central Sandstone Project.
The tenement is a good addition and provides additional exploration opportunities as we focus on generating critical mass for future production.
“The closest point of the tenement is just 4 kilometres from the existing processing plant location.
“Diamond drilling is progressing well at the Two Mile Hill underground resource that we continue to view as a key part of the project going forward, with the scale to potentially underpin future production.“