Aurumin Ltd (ASX:AUN) has jumped more than 56% on returning a 344-metre intersection grading 1.29 g/t gold in its first diamond drill hole at the Two Mile Hill deposit within the 100%-owned, 784,000-ounce Central Sandstone Gold Project in WA.
The drill program is seeking to extend and better define Two Mile Hill’s inferred underground mineral resource estimate of 14.2 million tonnes at 1.1 g/t for 500,000 ounces.
Diamond tail
In the first hole, reverse circulation (RC) drilling took place as a pre-collar to 109.5 metres and the diamond drilling tail extended this hole to a down-hole depth of 582.5 metres.
Managing director Brad Valiukas said Aurumin was very happy with how Sandstone was progressing. “We have been expanding our tenement footprint, looking for new deposits and advancing the 500,000-ounce Two Mile Hill underground deposit with deep holes.”
Shares have been as much as 56.6% higher intraday to $0.18 and are up from $0.11 at the market close on July 6.
Total intersection of 344 metres
There was 313 metres of tonalite intrusive logged in hole SN_TM_RD_22_0002 with numerous occurrences of visible gold. A mineralised hanging wall zone of basalt and tonalite was also drilled after the main tonalite body.
From the start of tonalite through to the end of the mineralised hanging wall zone, the hole returned a total intersection of 344 metres at 1.29 g/t gold.
- 40.9 metres at 2.0 g/t gold from 243.5 metres;
- 21.8 metres at 2.0 g/t from 363.9 metres;
- 16.1 metres at 2.9 g/t from 409.9 metres;
- 19.3 metres at 2.0 g/t from 528.7 metres; and
- 22.2 metres at 2.5 g/t from 555.0 metres.
Cross section of hole SN_TM_RD_22_0002.
“A great result”
“This is a great result from our first hole at Two Mile. We look forward to further results, with the fourth diamond drill hole and program now completed,” Valiukas said.
“We continue to see the Two Mile Hill underground deposit as a key part of the project going forward, with the scale to potentially underpin future production."
About Sandstone
Aurumin cornerstoned the Sandstone Gold Operations with the acquisition of the Central Sandstone Project in early 2022.
This project comprises a 784,000-ounce gold mineral resource and significant project infrastructure that the company aims to use to support a gold mining operation in the future.
The company’s Johnson Range Project has a mineral resource of 64,700 ounces at a grade of 2.51 g/t gold and is midway between Southern Cross and Sandstone.
In addition to the Sandstone operations, the company has a significant landholding at its Southern Cross Operations, including two historical high-grade production centres, Mt Dimer and Mt Palmer.