Aruma Resources To Begin Drilling At Kopai Gold Project; Stock Rises 16.67% Midday

Aruma Resources To Begin Drilling At Kopai Gold Project; Stock Rises 16.67% Midday

The West Perth-based Aruma Resources Limited (ASX: AAJ), is a mineral exploration company with a key interest in gold deposits in Australia. Its active projects comprise Kopai Gold, Slate Dam and Beowulf projects with a large highly prospective land package spanning 806 km2 in the Eastern Goldfields of Western Australia.

On March 14th, 2019, the company announced plans for its maiden drilling program at the Kopai Gold Project, situated 20-km west of Kalgoorlie and directly along the strike of Evolution Mining’s (ASX: EVN) key project site, White Foil gold mine.

So far, the site preparation has been completed for the majority of drill holes, and drilling is scheduled to begin from March 2019 onward. Under the first phase of the program, around 13 Reverse Circulation (RC) holes will be drilled at Kopai, up to a depth of 150 metres at a nominal spacing of 75 meters, for a total of approximately 1,950 metres. The targeted depth of the planned drilling is so decided to ensure the intersection of gold mineralisation at a reasonable depth beneath the cover.

The first phase is estimated to be completed in one week and the results obtained, will be released as soon as they are recorded and collated. As the maiden program at Kopai comes to an end, it is planned to be followed up with a similar amount of drilling in the upcoming months.

Recently, on March 8th, Aruma Resources offered its eligible shareholders (registered holders with address in Australia or New Zealand as at March 7th, 2019), a Share Purchase Plan, whereby they have the opportunity to acquire up to $ 15,000 of Aruma’s ordinary shares at 0.6 cents per share without levying of any brokerage or transaction costs. The application submission deadline for the form is March 29th, 2019.

As per the Mining exploration entity and oil and gas exploration entity report for the quarter ended December 31st, 2018, the net cash and cash equivalents amounted to AUD 667K. The net cash inflow from operating activities stood at AUD 11K, with payments for exploration, evaluation and corporate costs more than balanced by refunds from research and development. The company estimates cash outflows for the next quarter to be around AUD 291K.

During the last quarter, Aruma Resources also received an R&D tax incentive rebate of $ 503,810 before costs. Besides, the company continued to advance its Kalgoorlie gold projects as it completed an Airborne Electro Magnetic (AEM) program across 380 km2 over the Beowulf and Slate Dam project areas in December. The Section 18 Ministerial approval for the Slate Dam leases affected by a registered aboriginal heritage site and the approval of a Program of Work (PoW) at the Kopai project, both were received during the period.

To date, Aruma Resources has a market cap of AUD 3.57 million with ~ 595.47 million outstanding shares. At the time of trading on Thursday, March 14th, 2019 at 03:10 PM AEST, the AAJ stock price was trending at AUD 0.007, soaring by 16.67%, perhaps post the recent drilling update.


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