Aurumin Limited - Quarterly Activities Report for June 2024
AUN (AUN) Share Update July 2024 Tuesday 9th
Aurumin Limited Reports Strong Quarterly Drilling Results and Strategic Divestments
Aurumin Limited (ASX: AUN) has released its quarterly activities report for the period ending 30 June 2024, highlighting significant drilling results, strategic divestments, and expansion of its Sandstone footprint.
Instant Summary:
- Significant drilling results at Plum Pudding with a top assay of 344g/t Au.
- New targets identified at Mt Klempt South, Two Mile Hill West, and Old Town Trend.
- Binding Term Sheet with Kula Gold Limited for the divestment of the Mt Palmer Project.
- Acquisition of five additional exploration tenements at Central Sandstone Project.
Drilling Campaigns and Results
Aurumin Limited conducted extensive drilling campaigns during the quarter, yielding significant results. At Plum Pudding, located 800m west of the Sandstone Processing Plant, the company reported an outstanding result of 18m @ 25.80g/t Au from 30m, including a bonanza grade intercept of 2m @ 215.20g/t Au from 43m.
Other notable results include 2m @ 11.02g/t Au from 16m at Mt Klempt South, and 3m @ 2.19g/t Au from 77m at Two Mile Hill West. These results confirm the potential for high-grade mineralisation across multiple targets.
Strategic Divestments
During the quarter, Aurumin entered into a Binding Term Sheet with Kula Gold Limited for the divestment of the Mt Palmer Project. Aurumin will receive $250,000 in shares or cash upon completion for Kula to acquire a 51% interest in the tenements. Kula will spend $1,000,000 over three years to earn a further 29% interest, with Aurumin retaining a 1% royalty if it dilutes below 10%.
Expansion of Sandstone Footprint
Aurumin also expanded its Sandstone footprint by acquiring five additional exploration tenements, covering 60km² of Youanmi Terrane Greenstone. This acquisition solidifies Aurumin's position at its flagship asset and adds to its existing targets and prospectivity.
Corporate Updates
Aurumin's closing cash position at the end of the quarter was $0.919M. The company made payments of $143,000 to related parties, relating to existing remuneration agreements for directors and payments for accounting and company secretary services.
The significant drilling results and strategic divestments are likely to positively impact Aurumin's stock price. The high-grade intercepts at Plum Pudding and other targets demonstrate the potential for substantial resource expansion. The divestment of the Mt Palmer Project provides additional capital and reduces operational risks, while the expansion of the Sandstone footprint enhances Aurumin's long-term growth prospects.
Investor Reaction:
Investors and analysts have reacted positively to the drilling results and strategic moves. The high-grade results at Plum Pudding have been particularly well-received, with analysts noting the potential for significant resource expansion. The divestment of the Mt Palmer Project is seen as a strategic move to streamline operations and focus on core assets.
Conclusion:
Investors should closely monitor Aurumin's ongoing drilling campaigns and strategic initiatives. The company's focus on expanding its resource base and streamlining operations positions it well for future growth. Subscribe to our newsletter for regular updates on Aurumin Limited and other stock market news.