Morille Tungsten Project Update

RNS Number : 4988A

Aurum Mining PLC

21 March 2013

 



March 21st 2013

AURUM MINING PLC

("Aurum" or "the Company")

Update on the Morille tungsten project, Spain

Aurum Mining plc (AIM: AUR), the gold and tungsten explorer, is pleased to provide an update on progress made on the Morille tungsten project in Salamanca Province, North West Spain, and to outline the next steps for the project.

Highlights

·    The comprehensive review of historical and geological data on the project has now been completed and initial drill targets have been identified

·    Three year work programme has been submitted to and approved by the Mines Department of Salamanca ("Mines Department")

·    Environmental baseline work has been completed. No material environmental concerns relevant to mining development of the project were identified by the Company's environmental consultants

·    Initial sampling of outcrops, stream sediment and dump material at Morille have all indicated the presence of tungsten mineralisation

·    Preliminary JV and partnering discussions under way to fund proposed drill programme of 8,000-10,000 metres at the site of the old Alegría mine.

Further detail

Since the completion of the acquisition of the Morille permits in September 2012, the Company has been embarking on two major workstreams that are necessary to ensure that the initial exploration work on the project commences in the most efficient and effective way. The Company has been supported and advised on both these workstreams by the Company's Spanish consultants, Desarrollo de Recursos Geológicos ("DRG").

Given the considerable size of the Morille project (5,796 hectares) and its brownfield nature, there is a significant amount of historic data available. Parts of the Morille permits were mined until the 1980's and the Company has been encouraged by the quantum and quality of the historical information that has come to light. The historic information has provided the Company with invaluable pointers as to the optimal locations for the initial exploration work.

By carrying out such a comprehensive upfront exercise, the Company has undoubtedly made significant cost savings due to the fact that the information gathered has alleviated the need to do some of the preliminary exploration work at Morille that might otherwise have been necessary. For example, historical information recovered for the Alegríamine area includes the location of underground workings in preparation for operations that were abandoned abruptly without actually carrying out the extraction of ore, and also shows the extent of mineralisation over hundreds of metres. In addition, work programmes submitted to the Department of Mines by the historic mine operator of Alegríaoutlining proposed mining work that was never completed have been located. To have this detailed knowledge and understanding of the opportunity prior to the commencement of detailed exploration is a great bonus for the Company.

Furthermore, initial sampling of the outcrop and dump material on the permit area has corroborated information contained within the historical data which has enabled the Company to obtain a really good baseline understanding of the opportunity.

The review of this historical data has now been completed with the identification of initial drill hole locations and the compilation of a work programme that is most likely to yield successful results and positive newsflow.

The Company has also progressed all the regulatory activity necessary to enable the commencement of work at the project. The environmental baseline work has been completed, the initial three year work programme has been approved by the Mines Department and all licences have been satisfactorily renewed to reflect Aurum's ownership.

The Board believes that the project is now established to the extent that initial exploration work can now commence. It is proposed that the Company commences an aggressive drilling campaign at the site of the old Alegría mine. Following a review of all the historical data, it has been determined that this site provides the best initial exploration target. The Board is now happy to recommend a drilling campaign of some 8,000 - 10,000 metres at Alegría.

Tungsten mineralisation in the form of scheelite was exploited at the Alegría mine from the 1940s until closure in 1985. Historic evidence indicates that as many as four relatively flat lying mineralised horizons were exploited within 100 metres of the surface and this was supported by drilling carried out during the late 1970s by the Spanish Geological Survey (IGME) in collaboration with ADARO which showed variable thicknesses of mineralisation of commercial grade at Alegría. Assay results unearthed from one of these drill holes contained a mineralised intersection of 11m at 0.21% WO3 (from 22 metres), including 2.85m at 0.52% WO3, and this area therefore represents a strong target for follow up.

It is interesting and important to note that the old Alegría mine is only one of about a dozen major historic workings on the permit area. Many of the other workings provide significant exploration opportunities that will be followed up on in due course.

Given the importance of rationing and allocating capital effectively between the Company's gold and tungsten projects, and the potential cost of the proposed drilling campaign at Alegría, the Company is in preliminary discussions with potential partners with regards the funding requirements for the drilling programme.

Contacts:
Aurum Mining plc	www.aurummining.net
Chris Eadie, Chief Executive Officer	[phone]
WH Ireland Limited	Nominated Adviser & Broker
Mike Coe	[phone]
Newgate Threadneedle	Financial PR
Graham Herring / Beth Harris / Richard Gotla	[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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