Fiery Creek Drilling Yields 1.67% Copper; $3.5M Raised for Exploration
Aruma Resources has reported promising high-grade copper intersections from its maiden drilling at Fiery Creek, alongside new heavy mineral sands and gold-copper targets, supported by a $3.515 million placement to fund ongoing exploration.
- Maiden drilling at Fiery Creek yields high-grade copper up to 1.67%
- Heavy Mineral Sands potential identified at Wilan Project in South Australia
- New drill-ready gold and copper targets at Saltwater Project, Pilbara
- Placement commitments secured for $3.515 million to advance exploration
- Quarter-end cash balance of $501,000 excluding placement and R&D refund
Fiery Creek Drilling Delivers Encouraging Copper Results
Aruma Resources Limited (ASX – AAJ) has marked a significant milestone with the completion of its maiden reverse circulation drilling program at the Fiery Creek Copper Project in Queensland’s Mt Isa copper belt. The six-hole, 858-metre campaign uncovered high-grade copper mineralisation, including a standout 2 metres at 1.67% copper from 74 metres depth. These results confirm the presence of copper sulphide mineralisation within the Lady Loretta Formation, a geological unit known to host major base metal deposits in the region.
The drilling targeted anomalies identified by recent geophysical surveys and historical data, revealing both discrete high-grade zones and broader mineralised intervals. The southern conductor zone, associated with the Piper Fault, showed promising stacked quartz breccia zones, while the northern conductor intersected graphitic pyritic shales, a potential source of copper mineralisation. This first systematic exploration in over two decades at Fiery Creek underscores the project's potential for significant base metal discoveries.
Expanding Exploration Horizons – Wilan and Saltwater Projects
Beyond Fiery Creek, Aruma’s technical review of the Wilan Project in South Australia’s Eromanga Basin highlighted promising Heavy Mineral Sands (HMS) potential. The review identified key stratigraphic units analogous to those hosting recent HMS discoveries nearby, such as Altitude Minerals’ Peake Project. Aruma plans initial fieldwork and sampling this quarter to delineate HMS anomalies, aiming to tap into this emerging mineral sands province.
Meanwhile, in Western Australia’s Pilbara region, Aruma identified three new priority drill-ready gold and copper targets at the Tunnel Creek Prospect within the Saltwater Project. These targets, spanning a 5-kilometre strike, stem from a comprehensive review of historic exploration by Fortescue Metals Group. The anomalies suggest potential for mesothermal gold and sedimentary exhalative base metal systems, with Aruma preparing for infill soil sampling and subsequent drilling pending approvals.
Corporate Strengthening Through Capital Raise
To support its ambitious exploration agenda, Aruma secured firm commitments for a placement raising $3.515 million before costs, priced at $0.009 per share with free attaching options. The placement, completed in two tranches with the first tranche already issued, received strong backing including participation from key directors. These funds will bolster the company’s balance sheet, enabling continued drilling and project development across its portfolio.
At quarter-end, Aruma held $501,000 in cash, excluding the placement proceeds and an expected R&D tax incentive refund of approximately $445,000. Exploration expenditure for the quarter totaled $309,340, reflecting active field programs and technical assessments. The company remains debt-free and is planning a bonus option entitlement issue to reward existing shareholders.
Looking Ahead
Aruma’s diversified project portfolio, spanning copper, gold, heavy mineral sands, lithium, and rare earth elements across Australia’s premier mineral provinces, positions it well to capitalize on multiple commodity cycles. The initial drilling success at Fiery Creek, combined with new target generation at Wilan and Saltwater, sets a foundation for further exploration breakthroughs. The upcoming shareholder meeting to approve the second tranche of the placement and the planned drilling programs will be key catalysts to watch.
Bottom Line?
Aruma’s early drilling success and fresh capital injection set the stage for a pivotal exploration phase that could reshape its asset value.
Questions in the middle?
- Will follow-up drilling at Fiery Creek confirm and expand the high-grade copper zones?
- How will the planned fieldwork at Wilan refine the Heavy Mineral Sands potential?
- What impact will shareholder approval of the placement’s second tranche have on funding and exploration momentum?
