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Highlights
- Aurumin Ltd received a proposal for a potential joint venture with Brightstar Resources.
- Central Sandstone Project, rich in gold history, offers substantial processing infrastructure.
- The board has initiated a review process on the proposal, considering strategic options.
Aurumin Ltd (ASX:AUN) is currently evaluating a non-binding indicative offer (NBIO) from Brightstar Resources Ltd (ASX:BTR) to establish a joint venture over Aurumin's Central Sandstone Project, located in Western Australia’s East Murchison Mineral Field. This proposal could open a strategic path for the companies to collaboratively develop the historic mining region.
The Central Sandstone Project, part of the broader Sandstone Project, is approximately 520 kilometers northeast of Perth. This project includes an extensive setup: a non-operational carbon-in-leach (CIL) processing plant with a capacity of handling 500,000 tonnes per annum, as well as key infrastructure, operational licenses, a permitted tailings storage facility, and a water bore field. Additionally, the site includes camp facilities situated on freehold land near the township of Sandstone, enhancing its accessibility and readiness for any potential operational activity.
Historically, the Sandstone Project area has yielded over one million ounces of gold through both surface and underground mining efforts since the 1890s. Recent production includes contributions from Herald Resources Ltd in the 1990s and Troy Resources Ltd from 1999 to 2010. Under Troy Resources, approximately 4.4 million tonnes of ore were mined and processed with an average grade of 3.6 grams per tonne, resulting in around 508,000 ounces of gold before the operation was placed on care and maintenance in 2010.
In 2016, Middle Island Resources resumed exploration activities in the region. Aurumin acquired the Sandstone Project from Middle Island Resources in December 2021, marking a new phase of ownership with exploration potential. The Central Sandstone Project now represents a promising opportunity to revitalize a historically productive gold region, and Aurumin is assessing how this potential joint venture might align with its strategic goals.
Although the potential joint venture is still in the preliminary stages, Aurumin’s board of directors, alongside its advisors, has begun a formal review of the NBIO. This assessment phase will determine the feasibility and alignment of the proposal with Aurumin’s objectives.
Following the announcement of the potential collaboration, Aurumin shares saw a rise of over 5%, trading at 5.5 cents by 12:52 AEDT—a 5.77% increase from the day’s opening. Brightstar Resources also experienced a 2.22% increase, with shares reaching 2.3 cents. These movements reflect a positive market response to the potential for a collaborative future between the two companies in revitalizing the Central Sandstone Project.
