Aruma Resources Bets on Expansion (ASX:AAJ)
Aruma Resources Ltd [ASX:AAJ] has certainly given us a lot to talk about lately.
Aruma Resources is a mineral exploration company focused on the exploration and development of their gold projects in Western Australia.
If you’ve been following the story, my colleague Ryan Clarkson-Ledward wrote on Aruma Resources update earlier this month, when the AAJ share price rose 25% after the company discovered gold at Melrose Gold Project, all this without drilling.
You can read more on this here.
And then I wrote about the company a few days later when they announced they were looking to raise cash for exploration and to acquire Capital Gold Project in the Goulburn region, in New South Wales.
You can read about it here.
Well, this busy junior explorer released more news today
In today’s announcement, the company revealed they have applied for four new exploration licences. The licences are over gold prospective ground in Western Australia.
The new leases are the following:
- Scotia South (E63/2037) which goes through an untested extension of the Wiluna-Norseman Greenstone Belt. According to the company, it covers a similar geological area to Scotia Mining Centre, held by Pantoro Ltd [ASX:PNR] in the Norseman Gold Project.
- Saltwater (E52/3830 and E52/3837) which spread the project in the Pilbara over the 10 km extension of the Nanjilgardy Fault to the east.
- Melrose (E08/3219) which covers a possible extension of the Nanjilgardy fault to the south.
You can see the locations in the map below:
Source: Aruma Resources
Aruma has also applied for (ELA5987), which sits next to the newly acquired Capital Gold Project in New South Wales. This extends over Shinglehouse Creek and Bywong-Macs Reef in the Goulburn region in NSW.
Source: Aruma Resources
As the company said in the statement:
‘The new leases complement Aruma’s strategy to pursue new, prospective gold project areas, which demonstrate the potential to deliver high-grade gold discoveries.’
What could happen next?
After Aruma Resource’s announcement though, markets stayed muted. At time of writing Aruma’s share price remained flat at $0.004.
Gold has attracted a lot of attention during the pandemic, returning close to 15% since the beginning of the year already.
One way to get exposure to gold is through gold explorers, but it’s not easy to pick the winners. Another is to buy gold.
To find out more about the ‘Best Way to Buy, Sell and Store Gold’ check out our free step-by-step guide here.
To read the report, click here.
For The Daily Reckoning Australia