Aruma Resources has executed binding agreements to acquire a majority interest in the Tillex Copper Project in Ontario, Canada, a high-grade copper-silver deposit with significant exploration potential. The company plans immediate exploration and resource development activities to unlock value in this strategically located asset.
- Acquisition of 85% interest in Tillex Copper Project and 100% adjoining patent claims
- Historical drilling reveals broad, shallow high-grade copper and silver intersections
- Project located in Tier-1 Timmins mining district with full land and mineral rights
- Immediate exploration program including geophysics, diamond drilling, and metallurgical testing
- Acquisition terms include cash payments, share issuances, deferred consideration, and NSR royalty
Strategic Acquisition in a Premier Mining District
Aruma Resources Ltd (ASX, AAJ) has taken a significant step in expanding its copper portfolio by acquiring an 85% interest in the Tillex Copper Project, located in the prolific Timmins mining district of Ontario, Canada. This acquisition also includes 100% ownership of adjacent patent claims, granting Aruma full control over the land and mineral rights without the need for landowner approvals.
The Timmins district is renowned for its world-class mineral deposits and active mining operations, including Glencore’s Kidd Creek project, situated just 60 kilometres from Tillex. The proximity to established infrastructure such as roads, power, and water, along with access to skilled mining personnel, positions Tillex as a highly attractive asset for development.
Robust Historical Drilling Highlights High-Grade Potential
Tillex is a well-defined copper sulphide deposit with a history of extensive diamond drilling, totaling over 10,000 metres by previous operators. These programs have consistently returned broad, shallow intersections of high-grade copper and silver mineralisation. Notable drill results include intervals such as 110 metres at 1.69% copper and 7.05 grams per tonne silver from 34 metres depth, and 92 metres at 2.12% copper and 12.18 grams per tonne silver from 37 metres.
The mineralisation begins just 25 to 30 metres below surface and extends to at least 150 metres depth, with a strike length of approximately 450 metres that remains open along strike and at depth. The copper is predominantly hosted in chalcopyrite within argillite and siltstone units, accompanied by significant silver credits, including exceptional assays of up to 355 grams per tonne silver over 5 metres.
Immediate Exploration and Development Plans
Aruma plans to implement a dual strategy focusing on both exploration and resource development. The company has already appointed an experienced Canadian geologist as Project Manager to oversee on-ground activities. Exploration will commence promptly with detailed geophysical surveys to refine drill targets, followed by a phase-1 diamond drilling program aimed at confirming and extending the known mineralisation.
Subsequent metallurgical testwork is planned to assess processing routes, with initial indications suggesting the sulphide mineralisation is amenable to conventional grind-and-flotation methods without significant deleterious elements. The ultimate goal is to delineate a maiden Mineral Resource Estimate, which will be a critical milestone for the project’s advancement.
Acquisition Terms and Strategic Fit
The acquisition agreement with Metals Creek Resources Corp includes upfront cash payments and share issuances, with deferred consideration contingent on resource milestones and production cash flow. Additionally, a net smelter return royalty of 0.5% is granted to Metals Creek, with Aruma retaining the option to buy back half of this royalty.
Aruma’s Managing Director, Grant Ferguson, emphasised the strategic alignment of Tillex with the company’s growth objectives, highlighting the robust long-term demand outlook for copper driven by electric vehicles, renewable energy infrastructure, and advanced technologies. The acquisition complements Aruma’s existing Australian copper assets and marks a significant expansion into a stable, mining-friendly jurisdiction.
Outlook and Market Context
With global copper supply under pressure and demand set to grow, particularly from green technologies and data centres, the timing of this acquisition is notable. The Tillex Project offers a compelling opportunity to add high-grade copper resources in a proven mining district. Aruma’s planned exploration and development activities over the coming months will be closely watched by investors and industry observers alike.
Bottom Line?
Aruma’s acquisition of Tillex positions it to capitalise on rising copper demand, but the next exploration results will be pivotal.
Questions in the middle?
- When will Aruma release a maiden Mineral Resource Estimate for Tillex?
- What will initial metallurgical testwork reveal about processing efficiency and costs?
- How will Aruma fund the planned exploration and development programs?