News blog

Aurum Mining

• BY: Andrew Hore |
• POSTED: 05/02/2013 |

Spain-focused gold and tungsten explorer Aurum Mining says that prospecting results from potential gold projects have been promising. 

The prospecting work has identified new exploration targets near to the Peralonso and Cabeza de Caballo targets. The work suggests that there are extensions to existing mineralisation and additional gold structures in the wider area. There have also been positive drilling results at Peralonso.

Aurum returned £22.5m to shareholders after it sold its original Kyrgyzstan project. In March 2011, Aurum entered into a joint venture with Aim-quoted Ormonde Mining over four of its gold permit areas in Spain. Aurum had to spend €500,000 over 18 months in return for 60% in the Zamora Province, which includes the Pino del Oro gold project, and a 54% interest in the Salamanca province permit areas, which include the Cabeza de Caballo and Peralonso projects. Aurum also owns 100% of the Morille tungsten project. All of the projects are in a mining friendly region of Spain

Aurum has still to decide which of the gold projects it will push ahead with first. It will establish an initial resource in each of the three projects it has identified.

It is still early days for the Morille tungsten project with initial sampling and drilling this year. There is a potential resource of at least 8m tonnes. China dominates the supply of tungsten and additional regions of supply will be attractive as global demand is forecast to increase by 6% a year.

Aurum raised £700,000 in December and management says that shareholders are supportive. The 2013 exploration programme is fully funded. Although Ormonde’s focus is on its Barruecopardo tungsten project it is contributing its share of the exploration costs in order to maintain its remaining stakes. This indicates it feels that they are attractive projects.

Clients of Killik have increased their stake in Aurum to 5.11%.

At 3.38p a share, Aurum is valued at £4.77m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJanuary2013_40.pdf