- Aurum Resources (AUE) commences reverse circulation (RC) drilling program at its flagship Penny South gold project in Western Australia
- The company says Penny South occurs on the same shear structure as Ramelius Resources’ (RMS) Penny West and Penny North gold deposits
- Aurum’s drilling program will vector in on high priority structural targets identified in two main areas based on similar settings to Penny West and Penny North
- Eighteen RC holes totalling about 5,000 metres will be drilled over the next six weeks
- AUE shares down 10.9 per cent to 20.5 cents
Aurum Resources (AUE) has kicked off a reverse circulation drilling program at its flagship Penny South gold project in Western Australia.
The company said the new round of drilling would probe structural targets identified in two main areas based on similar settings to Ramelius Resources’ (RMS) high-grade Penny West and Penny North gold deposits to the north.
Penny South occurs on the same shear structure as the Penny West orebody and more recently discovered adjacent Penny North deposit, according to Aurum.
Penny West sits just 510 metres north of the Penny South licence and the Penny West north-to-south shear continues through the licence for a strike length of 2.5 kilometres.
High grade mineralisation is associated with the sheared contacts between mafic and granodiorite (felsic) rocks and quartz veining (often associated with sulphides).
Similar contacts are seen in Penny South, according to Aurum, and previous drilling has returned encouraging assays including two metres grading 33.89 grams per tonne gold from 38 metres and four metres at 2.1 g/t from 92 metres.
The company was planning to drill 18 RC holes totalling more than 5,000 metres to test the high priority structural targets at Penny South.
AUE shares finished the day’s trading session 10.9 per cent lower at 20.5 cents.