Market Update

Highlights

  • Fluid Flow Study proceeding at Glandore
  • Phase 1 Laverton East Drilling program completed – assays expected in September
  • Tenement footprint continues to grow – new Exploration Licence applied for at Bulong
  • Exploration Plan mapped for FY2012

Aruma Resources Limited (ASX:AAJ) (“Aruma” or “the Company”) is pleased to provide an update to the market on its strategy, progress and planned programs at the Company’s portfolio of gold projects, covering some 1000km2 in WA’s Eastern Goldfields.

Strategy

Aruma has a clear strategy to efficiently explore the gold mineralisation potential of a growing landholding in WA’s Eastern Goldfields – with a view to developing a gold production hub centred around its flagship Glandore project. To this end, Aruma has systematically expanded its portfolio of prospective gold projects within a 60km radius of the Glandore Project to an area covering some 534km2.

Importantly, all of Aruma’s lease holdings have been selected based on the presence of geological structures typically known to host mineralisation.

Expanding Footprint

The Company continues to expand its footprint in the Eastern Goldfields region – a proven and prolific gold province. In line with this strategy, Aruma has applied for a new Exploration Licence covering the northern extension of the Bulong gold mineralisation line. The lease (Figure 1) contains rock types and structural lineaments favourable for gold mineralisation covered by transported soil.

Glandore Project showing new Bulong EL Application

Glandore Project showing new Bulong EL Application

Efficient Exploration of Flagship Glandore Project

Given the extent of Aruma’s growing project portfolio, the Company is committed to a strategy of efficient exploration to disprove or confirm potential targets. In keeping with this strategy, the Company is deploying new exploration technologies, including a Fluid Study underway at its flagship Glandore Project, by CSIRO.

The Study, which Aruma expects will be completed before year-end, will achieve outcomes comparable to a 20,000m pattern drilling program, but in a considerably shorter timeframe and at a considerably less cost.

This study will define potential covered gold drill targets using the data from the recent gravity survey, reprocessed detailed magnetics, geochemical and structural modelling together with geology from both drilling and mapping

This modelling has been successful in generating targets in the east Kalgoorlie area that have yielded major new deposits in similar structural environments such as Integra’s nearby Salt Creek and Majestic Deposits.

The drilling to date at the Glandore Project has been limited to areas of either outcrop or gold soil anomalies, leaving considerable unexplored potential on the Project around the drilled areas.

The two matching figures below show the Aruma Leases on the Landsat Image with structures on the left and comparable unexplored areas in the shaded areas on Geology to the right.

Glandore Project gravity survey/fluid study area

Glandore Project showing Gravity Survey/Fluid Study area (in yellow outline) and the untested nature with targets under the salt lake (shaded pink) with Majestic structure extension as black dashed line

Glandore Lease outline showing geology

Glandore Lease outline showing Geology and possible Majestic Structure Extension (Black) and Southern Structure (Red).

Glandore Project Status

Native Title Agreements and Mining Leases are now finalised at the Glandore Project which is being prepared for a major evaluation drilling Phase.

The Glandore area is a strongly mineralised gold system of potentially significant scale and now demands a new and total evaluation. The Company is on line with its strategic focus on proving mineralisation to develop Glandore as regional gold production hub, with regional satellites.

Summary of Exploration Activities for H2 2011/H1 2012

GLANDORE

  • Ongoing involvement of Traditional owners
  • Fluid flow Model over covered areas
  • Initial drilling on the extension of the Majestic Structure

KURNALPI SOUTH AND GINDALBIE SATELLITE PROJECTS

  • PoWs for drilling Au anomalies at Steeple Hill, Pinnacles South and Mt Quin
  • Investigating Ni possibilities at Steeple Hill
  • Initial database delineation and Hyvista over new leases

LAVERTON EAST, JUNDEE SOUTH, PATRICIA, YOUNO DOWNS and DARLOT EAST and NORTH

  • Drilled 700m Aircore/RAB over anomalies in gold geochemistry and Hyvista – analysis results expected in September 2011
  • Looking at new areas and data assembly of new leases
Laverton East Leases showing geology and drilling completed

Laverton East Leases showing geology and drilling completed

Other Projects

In addition to its current projects in Western Australia, Aruma continues to evaluate potential offshore project opportunities.

Competent Person’s Statement

The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Schwann who is a Fellow of the Australasian Institute of Mining and Metallurgy and Chartered Professional (Geology). Mr Schwann is an employee of the Company.

Mr Schwann has sufficient relevant experience to qualify as a Competent Person as defined in the JORC Code (2004) and consents to the inclusion of this information in the form and context in which it appears.


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