Aurumin Ltd (ASX:AUN) will assess the opportunity to add value to the 881,000-ounce Central Sandstone Gold Project by way of iron ore and has engaged Southern Geoscience Consultants (SGC) to undertake modelling of existing geophysical datasets.
The company believes the work of the consultants will aid in generating iron ore exploration targets at the project, which is 520 kilometres northeast of Perth and is part of Aurumin’s Sandstone Operations.
These operations also include the Birrigrin and Johnson Range projects and has a total JORC-compliant gold resource of 946,000 ounces.
Potential for high-grade iron
Recent rock chip results have highlighted the potential for high-grade iron ore in addition to gold mineralisation at Sandstone, potentially opening up synergies with progressing the gold project.
SGC will undertake a modelling process on Aurumin’s extensive existing geophysical datasets, including gravity and magnetics, to aid in quantifying a conceptual exploration target for iron ore.
High-grade iron is located in proximity to a main sealed road that is currently in use for hauling DSO iron ore from Mid-West WA projects.
Sandstone regional location and Geraldton Port with existing iron projects.
“We are pleased to have engaged SGC to help us evaluate the iron ore potential at Sandstone," Aurumin's managing director Brad Valiukas said.
Value beyond gold
"This is something we can undertake due to the extensive and valuable geophysical datasets we previously inherited and is a great example of the value at Sandstone beyond just the gold resources.
“First-pass rock chip sampling on outcrops returned numerous high-grade DSO quality results, with a peak of 67% Fe.
"There is a 6-kilometre strike of banded iron outcrops with potential widths of 5 to 40 metres, requiring further exploration, and representing an exciting discovery.
“The SGC work will progress us towards a JORC-compliant exploration target for the iron and assist in drill planning. We expect the results to be available to market by mid-August.
“Aurumin’s focus is firmly on Sandstone and generating the critical mass required for future production.
“The close proximity of the iron ore to some of our gold deposits, not to mention the potential value of the iron ore itself, could significantly alter the project economics.”
Drill testing of the high-grade iron formations is expected as part of Aurumin’s next drilling campaign.
Sandstone is approximately 495 kilometres east of Geraldton Port via sealed road. Multiple companies export iron ore through Geraldton Port and iron ore is hauled via sealed highway through Sandstone from operations further east on a regular basis.