Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Aurum Mining PLC (AUR)

  Print      Mail a friend       Annual reports

Monday 18 June, 2012

Aurum Mining PLC

Operational Update

RNS Number : 5200F
Aurum Mining PLC
18 June 2012
 

 

 

18 June 2012

 

AURUM MINING PLC

("Aurum" or "Company")

 

Operational Update

 

Aurum Mining plc (AIM: AUR) is pleased to update the market on the significant progress made by the Company in recent months and to outline the next steps for the Company. A comprehensive and detailed update on this activity will be included in the Company's Annual Report and Accounts for the year ended March 2012 which will be released to the market in due course.

 

Exploration update

 

·    Assay results from eight of the nine holes drilled during the recent drilling campaign on the "El Facho" structure of Aurum's Zamora gold project through its Spanish joint venture with Ormonde Mining plc ("Ormonde") (AIM: ORM) are now available. Previous drilling on the structure has already intersected gold of mineable widths and grades.

·    Each of the eight holes of the recent drilling campaign, for which assay results are available, have encountered gold mineralisation grading in excess of 1 g/t across multiple intersections. ORMP 19 contained a significant gold intersection of 22m at 1.09 g/t and ORMP 20 had a section of 9m at 1.24 g/t. Previously released results from this campaign highlighted a gold intersection in ORMP 15 of 22m at 1.94 g/t within an overall mineralised section of 49m at 1.16 g/t (see announcement dated 28 March 2012).

·    A table outlining the key results from the drilling programme at El Facho is attached below.

·    Based on all drilling completed at El Facho to date, some modelling of the mineralisation has been carried out which indicates continuity of the main gold-bearing structure over a strike length in excess of 600 metres.

·    Based on this modelling, the joint venture's external consultant, Aurum Exploration Services, the Irish based mineral exploration consultant, has carried out an exercise to determine a preliminary resource estimation. This modelling indicates that the current resource at El Facho could be in the region of 122,000-145,000 ounces based on a 0.3 g/t cut off, though it is important to note that this is an early stage estimate to assist in guiding further drilling programmes and is not a resource that has been calculated in compliance with any internationally recognised standard. The range in estimates is due to differing modelling assumptions. Under the differing assumptions, but retaining the 0.3 g/t cut off level, resource tonnage ranges from 3.8-4.8 million tonnes and overall grade ranges from 0.94 g/t to 1 g/t.

·    To date, Ormonde and the joint venture have only drilled 3,658 metres at El Facho and there is still a long way to go to fully understand the structure and to determine its full potential. The structure is still open in all directions and further work, including some relatively straightforward processes such as infill assaying of sections not chosen for initial assay, will now be carried out with the objective of better understanding the structure and seeking to increase the potential resource.

·    The three hole drilling programme at the highly prospective Peralonso permit area in Salamanca Province has now been completed. Results will be reported upon receipt of the assays for the three holes

·    All necessary permits have now been received to enable trenching work to begin on the Cabeza permit area in Salamanca Province. This work is due to commence in July 2012.

·    Aurum has now advanced funds of €500,000 required to earn its majority interest in the permits that are the subject of the joint venture agreement with Ormonde. The process is now being commenced to transfer the relevant permits to Aurum. As per the terms of the original joint venture agreement between Aurum and Ormonde, Ormonde will continue to manage the joint venture though Aurum will now provide the Chair of the Supervisory Committee which oversees operational activity.

 

Business Development

 

In addition, the Company is delighted to announce that it has secured an exclusive option to acquire five tungsten permits (the "Morille permits") in Salamanca Province. The five permits are located 15km southwest of the city of Salamanca and cover an area of 5,796 hectares.

 

Aurum has a three month option to acquire the permits.

 

The Board is extremely excited about the potential of the Morille permits and technical and legal due diligence is now underway to determine the potential of the opportunity.

 

The key aspects of the Morille permits and permit area are as follows:

 

·    The Morille permit area is a 'brownfield' site and there has been a long history of the production of high quality tungsten concentrates from mineralisation grading up to 1% WO3.

·    The historic mines closed during the 1980's as a result of low commodity prices. Subsequently, prices have increased significantly and there is reason to believe that a significant supply shortage is developing in the tungsten market. These supply issues have been highlighted by the EU in its report "Critical Raw Materials for the EU" (May 2010) where tungsten was listed as a "critical raw material" due to its "high economic importance and high relative supply risk" and more recently by the British Geological Survey who have ranked tungsten in the joint highest position in its "Current Supply Risk Index" of metals which are of economic value.

·    Now that there has been the consolidation of approximately fifty old small mines into a single unified block, the Morille permits provide the first opportunity for systematic exploration of the area for tungsten.

·    Though the information needs to be verified by the Company, historical geological, exploration and production data provide excellent pointers as to where the initial exploration targets should be.

·    A geological survey carried out by two state geological surveys in the late 1990's concluded that there is a potential resource tonnage of at least 8 million tonnes across the Morille permit area, with the majority of this resource at the site of the old Alegria mine which will inevitably be the key initial exploration target for Aurum should the acquisition of the Morille permits go ahead.

·    Production data from the public database of the regional Government shows that historically there has been over 735,000 tonnes of tungsten ore mined from the Morille area, ranging in grade from 0.1%-1% WO3.

·    The historic data also reports that two of the plants within the permit area were producing concentrate containing 70% tungsten. By current standards these are high grade concentrates.

·    The area is served by excellent infrastructure.

·    The area sits within a well known tungsten province - other known deposits in the area include Barruecopardo, Panasquiera, Los Santos and Regua.

 

The Board's optimism around the opportunity is shared by that of its technical advisers, Golder Associates, who are assisting the Company with its due diligence in respect of the permits. Golder Associates have concluded that the area represents a valid exploration target which 'merits exploration' while the Company's consultants on the ground, Desarrollo de Recursos Geologicos S.A. ("DRG") have concluded that the project 'provides more favourable conditions than those of virtually any other similar project currently underway in Europe'.

 

The Board will now ensure that the due diligence process is completed both efficiently and effectively before making its decision on whether to proceed with the acquisition.

 

Another striking factor about the Morille project is how complementary it is to Aurum's existing gold assets in terms of its location. Should Aurum decide to proceed with the acquisition of the Morille permits, it should be straightforward to service both the gold and tungsten assets with a single administrative function.

 

Other opportunities

 

As a direct involvement of the Company's presence and activity in Spain, the Company has been approached about, and has access to, a number of other investment opportunities in the country.

 

With the assistance of its consultants, DRG, Aurum will continue to look at and appraise these opportunities and where appropriate will look to take the opportunities forward.

 

 

Sean Finlay, Aurum's Chairman, said:

 

"The wholesale transformation of Aurum into a Spanish mining group continues apace and given the successful recent activity, these are exciting times for the Company.  The ongoing work on the gold projects continues to point to the potential of a significant gold structure at the El Facho prospect, albeit it that there has only been limited work on the structure to date, and we look forward to getting the initial assay results from the drilling campaign at Peralonso and to getting the exploration work at Cabeza underway.

 

The Morille opportunity looks like it has the potential to be a really interesting project for Aurum and we hope to have the due diligence process completed shortly. The really compelling part of the investment proposition is that it seems that Aurum could progress the project relatively quickly given the brownfield nature of the opportunity and the fact that there is a substantial amount of historic information available.

 

As a Company we feel that we now have a strong foothold in North Western Spain and we will continue to look at convincing investment opportunities that arise in the region, which could be complementary to our existing projects."

 

 

Background

 

On 11 March 2011, Aurum entered into a joint venture with Ormonde whereby Aurum can earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (one of which is still under application), by spending €500,000 on exploration activities over an 18 month period.

 

Initial work of the joint venture has focused on following up on previous drilling carried out by Ormonde at El Facho.

 

Known gold mineralisation at El Facho is hosted in multiple steeply dipping structures characterised by quartz veining, silicification and alteration within granites.  The joint‑venture drilling was designed to test for extensions to the known mineralisation and in particular to ascertain whether broader mineralised intervals could be discovered. 

 

Including the eight recent holes for which we now have assay results, a total of 17 holes have been drilled by Ormonde at El Facho and 16 of these have intersected gold mineralisation grading in excess of 1 g/t. The key intersections from these 17 holes drilled by Ormonde at El Facho are highlighted in the table below. The assay results from ORMP 21 are still awaited.

 

 

El Facho Drilling Results

Hole Reference

From (m)

Thickness (m)

Gold (g/t)

ORMP 1

51

23

1.1

ORMP 3

131

3

3.6

ORMP 4

40

6

3.7

ORMP 4

62

4

1.7

ORMP 5

56

9

1.5

ORMP 6

104

7

1.1

ORMP 7

38

7

1.2

ORMP 10

89

12

3.4

ORMP 10

75

30

1.6

ORMP 10

25

80

0.8

ORMP 11

102

10

2.1

ORMP 11

275

5

1.9

ORMP 13

154

10

0.6

ORMP 13

172

3

1.4

ORMP 14

143

1

11.4

ORMP 15

96

49

1.2

ORMP 15

99

25

1.8

ORMP 15

109

11

3.6

ORMP 16

144

10

0.5

ORMP 16

226

7

0.9

ORMP 17

148

12

0.7

ORMP 18

21

14

0.4

ORMP 19

79

22

1.1

ORMP 20

55

15

0.8

ORMP 20

56

9

1.2

 

 

The following link shows the plan view of drill holes at El Facho, with holes drilled by the Joint Venture shown in red

 

Figure 1: http://www.rns-pdf.londonstockexchange.com/rns/5200F_-2012-6-15.pdf 

 

As well as undertaking further work at El Facho, the three hole drilling programme on the Peralonso permit in Salamanca Province has been completed. Results will be reported upon receipt of the assays for the three holes. The programme has been designed to test the shallow depth extent of gold mineralisation located in previous trenching.  Gold mineralisation is hosted within Fe-oxide-bearing breccias within altered granites, with previous trenching of an extensive soil geochemical anomaly (400 x 400m) returning a best interval of 5 metres grading 5.4g/t gold.

 

Trenching work will also shortly commence at the Cabeza Permit area in Salamanca Province. This trenching will follow up on the results of earlier soil geochemical analysis and other surface exploration work.

 

Notes:

 

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 the fire assay (FA) method with an atomic absorption (AA) finish. Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures.

 

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.

 

As noted above, resource information contained in this announcement relating to the El Facho structure has not been estimated in compliance with any internationally recognised standard and has been undertaken at this time solely to guide further drilling programmes in order to ascertain the full resource potential in the project area.  Accordingly this announcement does not constitute a resource update within the meaning of the AIM Guidance Note for Mining, Oil and Gas Companies.

 

 

 

For further information:

 

Aurum Mining plc

Tel: 020 7499 4000

Chris Eadie, Chief Executive Officer

 

 

 

Fairfax I.S. plc

Tel: 020 7598 5368

Nominated Adviser and Broker

 

Ewan Leggat / Laura Littley

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCLLFEERFIELIF