Could Aruma Resources set a New Share Price High this Year? (ASX:AAJ)
Shares in Western Australian exploration gold explorer Aruma Resources Ltd [ASX:AAJ] are flat today, with the company announcing drilling approval at its Saltwater Gold Project.
The upward momentum the AAJ share price enjoyed through July–September has now begun to taper off with little in the way of updates released to the market.
The company sold off its Slate Dam Gold Project earlier this month for a total consideration of $500,000, with the intent of focusing efforts at Saltwater.
There has been no change in the AAJ share price since last Monday, which is currently at 0.7 cents per share.
20,000 metres of potential
Today, AAJ announced the Department of Mines, Industry Regulation and Safety (DMIRS) have granted all requests in the company’s program of works.
Meaning AAJ can now complete up to 20,000 metres of drilling at its Saltwater Gold Project.
With drilling contractors already secured, the first phase of drilling will include up to 5,000 metres of reverse circulation drilling targeting defined targets at the Saltwater Ring Structure.
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Source: Aruma Resources
Drilling is currently expected to commence in early December with site works being conducted now to clear some six kilometres of land for drill lines.
The explorer said seven drill lines are planned for 50 holes to a nominal drill depth of 100 metres.
Aruma Managing Director Peter Schwann commented on today’s announcement:
‘The last six months since we applied for these areas has seen a tremendous change in Company focus that with funding brings the ability to efficiently explore these areas. This organic growth has been appreciated by our investors and over the next year we will seek to progressively drill our new project areas, and further grow the Company.’
What’s in store for Aruma Resources?
With no historic results or sampling to go off, it’s difficult to speculate what kind of mineralisation might occur at Saltwater.
According to AAJ, Saltwater is situated on the same regional structure reported as the primary source of gold mineralisation at Northern Star Resources Ltd’s [ASX:NST] Paulsens Gold Mine.
But with drilling soon to commence, it seems investors aren’t too interested in punting on the microcap explorer just yet.
What they might be holding out for is AAJ’s Melrose Project to progress.
Source: Aruma Resources
The project also sits adjacent to the Paulsens Gold Mine.
So far, heritage agreements have been signed and AAJ is waiting for the exploration licences to be granted.
Once this has been finalised, exploration will commence to initially target a number of significant magnetic anomalies.
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For The Daily Reckoning Australia