Aurumin (ASX:AUN) has announced its discovery of high grade iron-ore at its Central Sandstone project in WA.
One big caveat: the results were based on rock-chip samples. Nonetheless, the company reported fragments at 67% iron from banded formations over some 6km in length.
The assets are located near a sealed road, boosting hopes the company could run a DSO operation from Central in the coming years.
Aurumin geotechs have immediately started to plan a drill run.
“First pass rock chip sampling returned numerous high-grade DSO quality results, with a peak of 67% and represent an exciting complementary opportunity at Central Sandstone,” Aurumin MD Brad Valiukas said.
“Aurumin’s focus is firmly on Sandstone and generating the critical mass required for future production. The close proximity of the iron ore to some of our gold deposits, not to mention the potential value of the iron ore itself, could significantly alter the project economics.”
AUN last traded at 3.8cps.