About Aruma Resources
Aruma Resources Limited has been listed on the Australian Stock Exchange for over 6 years and is an exploration and development company focussed on Australian resource projects. The overarching goal of the Company is to increase shareholder value through the application of modern exploration and advancement of its resource projects through to development. In addition, the Company actively reviews value accretive growth opportunities to augment the asset portfolio.Since listing ARUMA’s tenement package has been turned over as diligent exploration requires. The project areas are now focussed on gold, and this focus is on the Kalgoorlie Terrain, a proven gold producing area.
This new focus has allowed ARUMA to continue its exploration focus on gold in the Glandore area 40km east of Kalgoorlie. Following the Glandore joint venture with Southern Gold (ASX announcement on 6 April, 2016) the area has continued to yield interesting exploration targets at Goddards Dam and Clinker Hill. Subsequent to this over 142km2 of new area at Slate and Mulga Dam has been applied for which are contiguous to the north and east of the Glandore Projects. A third area further to the east at Gundockerta Hill has also been applied for but is under a ballot requirement with another explorer.
Research Driven Exploration
In 2015, Aruma obtained Exploration Incentive Scheme funding for a 1,200m deep diamond hole to investigate stacked lodes in the supposedly intrusive rocks that were postulated in the Glandore Anticline. This drill hole failed to intersect any definite intrusive dolerite, gabbro or porphyry but intersected a thick repetitive sequence of mafic and felsic Bouma (turbidite) sediments which showed no major shearing or deformation.
This result required further investigation after assays revealed multiple low grade gold zones in shaly horizons. The alteration and mineralization was hydrothermal and the sulphides were sampled and sent to CODES in Hobart for laser ablation-inductively coupled plasma for analysis. The results of this were encouraging in that the main recommendation was:
“The geochemical characteristics of the pyrite in this study suggest that the Glandore area is prospective for orogenic Au-Cu resources like those at the Imperial-Majestic deposits”.
The stratigraphy for those deposits is the felsic sediments to the east of Glandore, and the areas of Slate and Mulga Dams were available and hence were acquired by application. The prerequisites of crustal faults, reactive wet rocks and granite intrusions as heat sources are all present in these areas.
Research Driven Exploration benefits
Since 2011, Aruma has been able to use an exploration model to generate targets and receive substantial benefit from R and D tax refunds.
|FY 2011||FY 2012||FY 2013||FY 2014||FY 2015||Total|
|Total R&D Expenditure||$941,857||$836,682||$1,414,562||$1,149,107||$1,384,515||$5,726,723|
|Tax Benefit (refund)||$353,165||$376,507||$636,553||$517,098||$623,032||$2,506,354|
Table 1: Significant returns from R and D tax refunds
As can be seen, the return of exploration funds has been half of the original IPO capital raising, or some $417,000 pa, including almost $70,000 pa of salaries refunded as well.