Aruma Resources Ltd Share Price Drops by 33% (ASX:AAJ)
It’s been a busy year for gold miners with gold prices rising, and this includes junior explorer Aruma Resources Ltd [ASX:AAJ].
Aruma is focused on the exploration and development of several gold projects in Western Australia. The company recently went on a capital raise to get cash but also to buy Capital Gold Project in New South Wales. You can read more on this here.
What did Aruma announce today?
Aruma has increased the size of their prospective Saltwater gold project while also pin pointing a large priority exploration magnetic target.
The Saltwater project is located in the Pilbara region in Western Australia, about 100km south-west from Newman. The project has four exploration licence applications: ELA52/3816, ELA52/3818, ELA52/3825, and E52/3830.
Aruma has applied for a new exploration licence (E52/3846) at the project, which covers an extension of 96km squared and is next to ELA52/3818, as you can see below. This expands the area of the project to 463km sq.
Source: Aruma Resources
With this new exploration licence, Saltwater now covers more than 65km of the Nanjilgardy Fault. The Nanjilgardy Fault includes several areas of gold anomalism and is thought to be along the same regional structure as Northern Star Resources Ltd’s [ASX:NST] Paulsen’s Gold Mine and Mt Olympus Gold Mine.
Aruma has also identified an over 60 squared metre Saltwater Ring Structure, with the Saltwater and Atlantis anomalies sitting on the western limit of the structure.
According to the company, the Saltwater project represents ‘an exciting early stage gold exploration opportunity in an under explored area’.
What could happen next?
As part of their exploration targeting work, Aruma is looking to include a detailed desk top study on the project. This is set to include a ground reconnaissance program with the objective of marking and ranking their first priority exploration areas.
Markets haven’t reacted well to the news. At time of writing, Aruma Resources Ltd’s [ASX:AAJ] shares are down over 33% today at time of writing, with shares trading at $0.004.
Truth is, investing in gold miners like Aruma is risky. Another way to get exposure to gold is to own it directly.