Aurumin Limited (ASX: AUN) has announced the engagement of Southern Geoscience Consultants (SGC) to conduct detailed modelling of existing geophysical datasets at its Central Sandstone Project.
This strategic move aims to generate iron ore exploration targets within the project area, potentially adding significant value to the company’s 881,000-ounce gold resource.
The modelling process will utilise Aurumin’s extensive geophysical data, including gravity and magnetic surveys, to quantify an Exploration Target for iron ore.
This initiative follows recent rock chip sampling that revealed high-grade iron ore potential at the Sandstone Project, with results indicating direct shipping ore (DSO) quality and a peak grade of 67 per cent Fe.
Brad Valiukas, Managing Director of Aurumin, expressed enthusiasm about the engagement, stating: “This is a great example of the value at Sandstone beyond just the gold resources.”
He highlighted the discovery of a six-kilometre strike of banded iron outcrops with potential widths of five to 40 metres, which requires further exploration.
The Central Sandstone Project’s strategic location near a main sealed road currently used for hauling DSO iron ore presents potential logistical advantages.
Aurumin plans to incorporate drill testing of the identified high-grade iron formations in its upcoming drilling campaign.
The company expects to receive the results of SGC’s work by mid-August, which will progress Aurumin towards a JORC-compliant Exploration Target for iron ore and assist in drill planning.
This development could significantly alter the project’s economics, given the proximity of the iron ore to some of Aurumin’s gold deposits.
Aurumin’s Sandstone Operations, which include the Central Sandstone, Birrigrin, and Johnson Range Projects, boast a total gold resource of 946,000 ounces.
The company remains focused on generating the critical mass required for future production while actively exploring its tenements and pursuing complementary acquisitions.
This latest initiative underscores Aurumin’s commitment to maximising the value of its assets and creating additional shareholder value by exploring multiple commodities within its project portfolio.
