Gold

Pino

The focus of the joint venture to date has been on the ‘El Facho’ structure which falls within the Pino permit area. A total of 18 holes have been drilled at El Facho by Ormonde and the joint venture to date and this amounts to some 3,658 metres of drilling. Assays from these 18 holes were very encouraging and have indicated that the El Facho structure does contain intersections of mineable widths and grades. The assays to date indicate a main gold bearing structure over a strike length in excess of 600 metres.

 

Despite the relatively limited work done on the structure to date, the potential of the El Facho has further been highlighted in the work done by the joint venture’s external  consultant, Aurum Exploration Services (the Irish based mineral exploration advisers who, it should be noted, are totally independent of Aurum), who have estimated 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. This was  an early stage resource estimation rather than being a resource that has been calculated in accordance with any internationally recognised standard but their findings highlight the significant potential of the structure even at this early stage of its development. It is also important to point out that the El Facho structure remains open in all directions.

 

The joint venture is now undertaking work which is focusing on  expanding  the potential resource on the Pino permit area through the identification of additional mineralised structures near to El Facho. This is being done so that the joint venture can get a clearer perspective and overview on the entirety of the permit area in order to determine and prioritise future exploration work on the site.

 

Over the summer months, soil sampling work has been carried out to define targets on two geochemical anomalies in the Pino permit area separate to the El Facho structure, one which lies half a kilometre to the north of El Facho and one which lies a kilometre and a half to the north west.

 

This soil sampling programme has comprised some 700 samples.  The assay results from this work are due back shortly and will be used to plan the follow up trenching and drill work programme.

Peralonso

On 4 July 2012, the Company announced the assay results from the first three holes  drilled on the Peralonso permit area. The three shallow holes were drilled to test the shallow depth extent of gold mineralisation which had been identified by historic trenching work.

 

The Board were delighted by the initial assay results, particularly with those from drill hole PERD001 which, despite being drilled to only 125m, contained three separate intervals including 18 metres grading 1.10 grams per tonne (“g/t”) gold from surface, 10.1 metres grading 3.39 g/t (from 46.9m) and 14.95metres grading 2.33 g/t (from 109.1m).

 

As a priority, the joint venture wishes to extend and expand its knowledge of the potential near surface gold structure at Peralonso, and to reflect this a 7 hole drill programme (totalling some 805 metres) will commence in September.

 

Following the positive results from the initial drilling at Peralonso, reconnaissance prospecting to the northeast of the Peralonso  permit area was carried out which indicated that the mineralised structures encountered in the preliminary drilling may extend beyond the existing permit boundary. As a direct result of this, the joint venture has  submitted a permit application for an area  adjacent to the northern boundary of the Peralonso permit area (totalling some  43 square kilometres). This permit area is called “Alajar” and the Company will keep the market updated with progress made on this application.

Cabeza

It is planned for initial trenching work to be carried out on the Cabeza permit area. The trenching work at Cabeza  will follow up on some positive historical soil geochemistry work. Assay results from this exercise should be available before the end of the calendar year.

Tungsten

Morille

Pursuant to its announcement on 22 October 2013, Aurum announced a deal to farmout a majority stake in the Morille tungsten project to Plymouth Minerals Limited (“Plymouth”) (ASX: PLH).

 

Aurum’s 20% 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.