Aurumin Limited (ASX: AUN) has announced the commencement of drilling at its Sandstone Iron Project in Western Australia. The drilling program is part of the company’s due diligence process with Newcam Mineral Pty Ltd, which holds an exclusive option to form a joint venture for the Iron Ore rights on the project.
The Sandstone Iron Project, located 520km northeast of Perth, includes three granted Mining Leases (M57/654, M57/128, M57/129), a 500ktpa CIL processing plant that requires refurbishment, and extensive infrastructure. Aurumin has identified a discontinuous 6km strike of banded iron formations with grades up to 67% Fe, indicating the potential for Direct Shipping Iron Ore (DSO).
The initial drilling program consists of 54 RC drill holes totaling approximately 2,000m and targets seven priority areas. The holes are designed to test the subsurface potential of high-grade iron mineralization identified in surface mapping. The company is also conducting systematic re-assays of historical pulps in priority target areas where available.
Aurumin has outlined the potential benefits of the joint venture with Newcam, which could provide up to $7 million in project funding. The joint venture would accelerate exploration activities, remove logistical hurdles for export, and de-risk the project. Unlike a royalty-based transaction, this structure allows Aurumin to retain greater upside potential and profit from future development.
Managing Director Daniel Raihani stated that the company is excited to be back on the ground drilling, emphasizing that the project has strong potential for high-grade iron ore. Discussions with Newcam will continue as drilling progresses, with further updates expected in the coming months.
