- Auris Minerals (AUR) has announced drilling will soon begin at Sams Creek, a gold project it's planning to acquire from Sandfire Resources (SFR)
- Under the acquisition, Sandfire will take a 19.9 per cent stake in Auris, in return for the New Zeland-based project
- Sandfire is also obliged to spend $600,000 on exploration works, including diamond hole drilling
- SFR will begin drilling up to seven holes at Sams Creek in November, testing alternative geological models and also the continuity of mineralisation
- The drilling will update the project's current JORC mineral resource estimate of one million ounces of gold at 1.54g/t, with a 0.7 g/t gold cut off
- Shares in Auris Minerals are trading up 6.06 per cent at 10.5 cents each
Auris Minerals (AUR) has announced drilling will soon begin at Sams Creek, a gold project it's planning to acquire from Sandfire Resources (SFR).
The Sams Creek Gold Project is located at the northern end of the South Island of New Zealand and hosts JORC mineral resource estimate of one million ounces gold at 1.54g/t, with a 0.7 g/t gold cut off and a high-grade zone of 588,000 ounces gold at 2.43g/t gold with a 1.5 g/t cut off.
Auris had previously entered into a legally binding term sheet to acquire the project from Sandfire, in return for SFR taking a 19.9 per cent shareholding in AUR.
As part of the deal, Sandfire is required to spend $600,000 on exploration work before the agreement is completed, including over six holes of diamond drilling.
The company has advised Auris it will begin up to seven holes of diamond drilling across 900 metres — with work to start next month.
The drilling will test alternative geological models at the main zone, as well as evaluate the continuity of mineralisation at the South East Traverse prospect.
The program also aims to upgrade Sams Creek's existing JORC mineral resource estimate, which will form the basis of a conceptual underground mining study.
"Sandfire has wasted no time in getting this initial diamond drilling program underway and we are delighted that our exploration strategy has now been set in motion," Auris Minerals Chief Operating Officer Mike Hendriks said.
"This is an important drilling program that will aim to update the current JORC mineral resource estimate, test the high-grade intersections of the main ore body and improve our geological understanding of the deposit," he added.
The initial results from Sandfire's diamond drilling program are expected in early December, at which point AUR will provide an update to shareholders.
Shares in Auris Minerals are trading up 6.06 per cent, worth 10.5 cents each at 2:43 pm AEDT.