Aurum Resources (ASX: AUE) has successfully secured an 80% joint venture (JV) interest in the Boundiali gold project located in Côte d’Ivoire, a significant step in its strategy to expand its portfolio in West Africa’s burgeoning gold sector. The milestone follows the completion of over 24,000 meters of diamond drilling (DD) across 105 holes, conducted by its subsidiary, Plusor Global, on one of the project’s four exploration tenements—the Plusor-Minex JV tenement.
The completion of the drilling program represents a key commitment under the terms of the JV agreement, which required Aurum to invest at least $3.8 million within the first three years of the project. The JV is now positioned for further exploration and resource development, as the company moves closer to announcing its maiden resource estimate at Boundiali.
Aurum’s Strategic Position and Financial Strength
In a statement, Aurum’s managing director, Dr. Caigen Wang, expressed confidence in the company’s ability to continue advancing the Boundiali gold project. With more than $19 million in cash reserves as of September 2023, Aurum is well-funded to accelerate its exploration drilling activities in Côte d’Ivoire.
“We are very encouraged by the scouting and resource definition drilling results we have seen so far,” Dr. Wang said. “However, we are most excited about the impending initial JORC (Joint Ore Reserves Committee) resource estimate, which we expect to release in late 2024.”
The company is keen to expand its drilling efforts, with six company-owned diamond drilling rigs already in operation at the Boundiali site. Plans are in place to drill up to 100,000 meters in 2025, marking a major commitment to the exploration and development of the project.
Exploration Progress and Surface Artisanal Workings
The Boundiali gold project is located in a region that has seen significant artisanal gold mining activity, which has provided valuable insight into the potential of the area. Numerous surface artisanal workings have been identified within the BM tenement, suggesting significant mineralization at shallow depths. This widespread artisanal mining activity adds further credibility to the resource potential of the project.
Aurum’s exploration efforts have been focused on both defining new resource targets and expanding upon existing ones. The company’s drilling program has not only provided essential geological data but also demonstrated the potential for significant gold mineralization in the area. With the upcoming maiden resource estimate, the company anticipates a clearer understanding of Boundiali’s full potential.
Plans for Ongoing Drilling and Resource Development
As Aurum moves closer to defining the scale of the Boundiali project’s gold resources, it has committed to further drilling to improve the accuracy and reliability of the resource estimate. The company’s extensive drilling campaign will continue through 2024, with a particular emphasis on defining a more comprehensive understanding of the mineralized zones.
By the end of 2024, Aurum aims to finalize the initial JORC resource estimate for Boundiali, setting the stage for continued development and potential future expansions. Furthermore, the company’s ambitious plans for 2025 involve a major increase in its drilling program, with up to 100,000 meters of drilling planned to further explore and define additional gold resources.
Aurum’s Growing Presence in West Africa’s Gold Sector
Aurum’s involvement in Côte d’Ivoire is part of the company’s broader strategy to expand its footprint in the gold-rich regions of West Africa. The company has identified Côte d’Ivoire as a key jurisdiction for gold exploration, with significant potential for large-scale discoveries. The Boundiali project, in particular, is considered one of the most promising in the region.
The success of the drilling program and the upcoming maiden resource estimate are expected to enhance Aurum’s reputation as a serious player in West Africa’s gold mining sector. With increasing gold prices and the growing demand for precious metals, Aurum is poised to leverage its position in the region to maximize shareholder value.
Aurum’s Acquisition of Mako Gold: A Key Strategic Move
In a related development, Aurum has made strong progress with its proposed takeover of Mako Gold (ASX: MKO), further strengthening its position in Côte d’Ivoire’s gold exploration industry. Mako Gold announced that Aurum has acquired control of the company, securing a 58% stake in Mako’s ordinary shares.
This takeover follows the execution of a bid implementation agreement in October 2023, under which Aurum is seeking to acquire 100% of Mako Gold’s shares, as well as 100% of the company’s class A and class B options. The acquisition will enable Aurum to integrate Mako’s assets into its portfolio, providing additional exploration opportunities in northern Côte d’Ivoire.
The Synergies Between Aurum and Mako Gold
Aurum’s acquisition of Mako Gold is seen as a strategically significant move, combining Aurum’s strong balance sheet and operational efficiencies with Mako’s promising gold assets. The takeover will create a more formidable exploration entity, better positioned to undertake large-scale resource definition work across both companies’ assets.
With $20 million in cash available for exploration, the combined entity plans to rapidly advance exploration programs in the northern region of Côte d’Ivoire. The merger will allow the two companies to pool their resources and expertise, significantly enhancing their capacity to discover new gold deposits and expand their respective project portfolios.
Preparing for Expansion: New Drilling Equipment and Consumables
As part of the preparations for the successful completion of the takeover, Aurum has made significant investments in exploration infrastructure. The company recently purchased two new sets of diamond drilling rigs and 30,000 meters of drilling consumables. These rigs and supplies were shipped from China on November 10, 2023, and are currently en route to Côte d’Ivoire.
This investment in new drilling equipment will support Aurum’s ongoing and expanded drilling programs across its West African projects, including the Boundiali gold project and Mako’s assets. The additional drilling capacity will enable Aurum to accelerate its exploration efforts, significantly increasing the company’s ability to meet its exploration targets.
Aurum Resources: A Strong Future in West African Gold
With its strong cash position, increasing resource base, and growing presence in Côte d’Ivoire, Aurum Resources is positioned for substantial growth in the West African gold sector. The company’s strategic acquisitions and aggressive exploration campaigns, such as those at Boundiali and Mako Gold, are expected to further enhance its reputation as a key player in the region.
The combination of a solid financial foundation, a diversified project portfolio, and cutting-edge exploration technology positions Aurum for success as it continues to develop its gold assets in Côte d’Ivoire. As the company looks ahead to the maiden resource estimate at Boundiali and the ongoing expansion of its exploration activities, the future looks promising for Aurum Resources and its shareholders.
In the coming years, Aurum’s ongoing exploration and development efforts, alongside the successful integration of Mako Gold, are set to transform the company into one of the most prominent gold explorers in West Africa, with the potential for significant growth and long-term success.
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