Cabeza drilling results and update

RNS Number : 0760I

Aurum Mining PLC

28 June 2013

 



News Release

June 28^th 2013

AURUM MINING PLC

("Aurum" or "the Company")

Cabeza de Caballo drilling results and update

Aurum Mining plc (AIM: AUR), the Spanish focussed gold and tungsten explorer, is pleased to report the results of initial drilling on the Cabeza de Caballo Permit ("Cabeza") in the Salamanca Province of western Spain, which forms part of the joint venture with Ormonde Mining plc ("Ormonde").

To date, four diamond holes have been drilled, over a total depth of 442 metres, to test for near-surface extensions to the gold mineralisation previously identified by prospecting, soil geochemistry, geophysics and trenching.

Due to access difficulties created by waterlogged ground and crop cultivation in the target area, the drill programme had to be curtailed on the completion of the initial four holes, as it was not possible to carry out the trenching that was planned prior to further drilling. Conditions have now improved and the trenching work required to finalise the drill hole locations of the programme has now recommenced ahead of further drilling.  

Results have been received for the initial four holes.

Main Points

·    As hoped, wide gold-bearing intersections  were identified in two of the first four holes drilled - best results were returned from hole CABDD002 with an interval of 24 metres grading 0.35 grams per tonne ("g/t") gold (from surface) and from CABD004 which intersected 18 metres grading 0.22g/t.

·    All four holes encountered gold mineralisation within 100 metres of the surface

·    Narrower, higher grade, intersections include 3m at 0.66g/t in CABDD003 and 1.15m grading 1.06g/t in CABD004

·    The mineralisation is associated with three distinct sets of quartz sulphide veining in a style consistent with an 'Intrusion-Related' gold mineralising system.

·    Trenching is now underway to enable the drilling to resume on defined targets

·    Trenching will also be carried out on the Peralonso permit area as a follow up to the drilling programme completed earlier this year. Previous results included 10m grading 3.39g/t gold and 2m grading 10.18g/t.

Sean Finlay, Aurum's Chairman, said:

"At this very early stage of drilling at Cabeza, we are encouraged to see wide gold-bearing intersections albeit with lower grades than hoped.

The Cabeza permit area is a large attractive prospect and there are a number of high quality target areas for follow up and we are optimistic that the forthcoming trenching and drilling, delayed as a result of the unseasonable weather over the Spring and early Summer, will yield results that demonstrate the potential of the project.

Work will also be resuming at Peralonso to follow-up on the high grade gold intersections identified there by the recently completed drilling programme."

Detail

Four holes were drilled for a total of 442 metres, principally to test for near-surface extensions to the gold encountered in trenching.  Previous trenching has yielded some  excellent results including 21m at 3.71g/t in CABTR004.

The four drill holes intersected a sequence of alternating granites and schists.  Quartz-sulphide veining is best developed in the granite intervals, where logging shows three types of veining in terms of vein geometries.  The density of veining observed is less than that seen in the trenching which returned the best gold results, and indicates the vein density is a control on the gold grade.

Research suggests that the style of mineralisation evident at Cabeza is consistent with that of a class of deposits known as "reduced intrusion related gold systems" ('RIRGS'). These deposits, which are characterised by arrays of gold bearing veins associated with upper levels of small granitic intrusions are becoming increasingly recognised for their potential to host commercially viable gold occurrences.  Examples include Kinross Gold's large, low grade Fort Knox deposit in Alaska.  Apart from the Alaska/Yukon area of North America, other RIRGS type deposits are reported from the Tien Shan district of central Asia, the New England / Lachlan Belt of Eastern Australia and the Bolivian polymetallic belt of South America.

The Iberian Peninsula is now also becoming recognised for its potential to host similar deposits, with the Salave and Rio Narcea deposits in Spain and the Penedona and Jales deposits in Portugal now recognised in the geological literature as further examples of this class of gold deposits.    

The key intersections from the first four holes drilled at Cabeza are set out in the table below;

Hole	Length (m)	Dip/Azimuth	From (m)	Thickness (m)	Gold (g/t)
CABDD001	77.8	-50o/280o	17	1.0	0.31
CABDD002	84.5	-50o/280o	0	24.0	0.35
CABDD003	108.4	-50o/280o	52	3.0	0.64
CABDD004	171.3	-50o/280o	82	1.2	1.06
and			126	18.0	0.22
and			164	1.0	0.31
and			170	1.3	0.46

Significant Intercepts using a 0.2g/t cut (1m minimum width of intercept and 4m maximum internal dilution)

Notes to table:

Sampling, Assaying and Quality Control Measures

All drill core has been routinely logged by an experienced geologist.  Relevant core intervals were split in half by diamond saw, with half being sent for assay and the other half being retained in the core boxes for reference.  Sampling is mainly carried out over one metre intervals.

Sample preparation and analyses were performed at ALS Chemex (Spain).  Assays are reported using Fire Assay and AAS on a 50g sample.  Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures.  In addition check assays are performed on selected mineralised samples.

Qualified Person

Simon Beardsmore, BSc (hons), ARSM, MIMMM, CEng, Technical Manager of Aurum Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.

Contacts:
Aurum Mining plc	www.aurummining.net
Chris Eadie, Chief Executive Officer	[phone]
WH Ireland Limited	Nominated Adviser & Broker
Mike Coe	[phone]

Notes to Editors:

Aurum Mining is an AIM listed exploration and development company focused on its highly prospective portfolio of gold and tungsten assets in North West Spain.

Gold

Through its joint venture agreement with Ormonde Mining plc (AIM: ORM), Aurum currently has a 60% interest in the Pino de Oro project in Zamora Province and a 54% interest in the Peralonso and Cabeza projects in Salamanca Province. 

Tungsten

Aurum's 100% owned Morille Tungsten project is located approximately 15km south west of Salamanca in North West Spain and covers an area of 5,796 hectares. The permit area is a 'brownfield' site with historical data indicating the production from the site of high quality tungsten concentrates from mineralisation grading up to 1% WO3.  This historic work will provide key information on where initial exploration targets are located.

 

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