The Company’s flagship project.
The project sits on the same shear structure that the high-grade Penny West (1990’s open pit 121,000t at 21.8g/t for 85,000oz) and the more recently discovered adjacent Penny North (2020 – underground 569,000t at 16.8g/t for 306,800oz). Penny West lies just 500m north of Aurum’s Penny South licence and the Penny West N-S Shear continues through the licence for a strike length of 2.5km. 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 and drilling to date has produced some hits, 2m at 33.89g/t from 38m (historic hole 95PSR0673), 4m at 2.1g/t from 92m (APSRC015 ARN: 28/05/2020) highlighting the potential of the area. The high-grade mineralisation at Penny West and Penny North are narrow high-grade zones so targeting has to be highly focused. While the Penny south area has been extensive drilled with 652 holes, these are generally shallow, with the average around 40m, so if a Penny North deposit, where the mineralisation starts at 80m and continues to 320m, was in the area it would likely be missed. So, the focus has been combining high resolution ground magnetics available drilling information for a detailed structural interpretation. Aurum contracted Richard Hill, who worked on the Penny North deposit for Spectrum, and Margie Hawke (Hazina Geoscience) to define targets along the structurally complex shear system. Ramelius Resources (ASX:RMS), to the North, have released a JORC Mineral Resource and ore reserve for enlarging the Penny West pit and planned a decline to Penny North from the open pit with 620,000t at 15.0g/t for 300,000oz .(2g/t cut off)