Aurum Resources (ASX:AUE) outlined its strategy to expand and upgrade confidence in its gold resources as it works toward building “not just a gold mine” but “a gold mining company,” according to a presentation by Mark Strizek at a company event. Strizek said the company sees potential to have two mines operating within roughly five years and described an ambition to become a “West African major.”
Drilling capacity positioned as a core advantage
A central theme of the presentation was Aurum’s in-house drilling capability. Strizek said the company operates its own diamond drill rig and has drilled more than 200,000 meters of diamond drilling to date. He argued this delivers both operational scale and cost advantages compared with peers that rely on contract drilling.
Team experience and shareholder base
Strizek emphasized management and board experience, noting several team members previously worked on Tietto, which he said was taken “from discovery through to being bought out for around about AUD 800 million.” He also noted that managing director Caigen Wang was in China at the time of the presentation, and that Aurum had “recently announced Richard Simpson as chair,” describing Simpson as having deep equity market experience.
On ownership, Strizek said board and management collectively hold about 11% and described the group as “incentivized” shareholders. He also cited corporate institutions at around 45% and said the register includes Montage and Zhaojin (which he said bought Tietto). Strizek added that the top 50 shareholders hold roughly 70% of the company.
Resource base, valuation framing, and project footprint
Strizek characterized Aurum’s enterprise value as “very modest” relative to its stated resource base, describing the company as having 3.3 million ounces and highlighting a reported enterprise value per ounce of around A$75. He also stressed the size of Aurum’s landholding, saying it has assembled what was previously a fragmented package into a more coherent position and describing the company as having a “strategic stranglehold” on the area.
In discussing the regional context, he referenced neighboring activity, including Atlantic and Montage to the south, and noted that Perseus’ Sissingué operation to the north is “running out of ore.” He also said Aurum has mining license applications over parts of its ground and began environmental work in April of the prior year. Strizek described Côte d’Ivoire as welcoming to development and suggested projects can be approved quickly, referencing Resolute’s Doropo project as an example of activity in-country.
Boundiali and other assets: development concept and exploration upside
Strizek said Aurum has spent around A$40 million to date and that it had about A$40 million in cash as of December. He described the work completed so far as largely “low-hanging fruit,” focused on targets that were readily identifiable from limited drilling, soil anomalies, or other early indicators.
At Boundiali, Strizek said the company has grown the project to around 1.1 million ounces from three deposits, and that additional deposits have been defined in the corridor. He described a potential hub-and-spoke development concept, with a central processing facility fed by surrounding deposits. He also highlighted higher-grade intersections that he said could support early cash flow, and noted that roughly 1 million ounces are in the indicated category, with the remainder inferred within the 2.4 million ounces he referenced for discoveries.
Strizek described mineralization as “very simple mining,” with broad zones and about 60 meters of oxide at surface that could be “free dig,” pending further work. He said a resource update for Boundiali was expected “this quarter” and described it as imminent, anticipating an uplift “both in quantity and quality.” He also said a pre-feasibility study (PFS) for Boundiali was expected by the end of the quarter and would begin to put “dollars and cents” around the development concept.
He also discussed the “BM project,” saying the company has grown it quickly to just under 1 million ounces based on soils, geochemistry, and artisanal workings, and that it previously had no drilling. Strizek said there remains significant drilling to be done. He referenced “BST” to the south as being 100%-owned by Aurum, while describing other assets as around 80% owned.
Napier acquisition and near-term catalysts
Strizek said Napier was acquired in an “opportunistic takeover,” with the Tietto team taking over in December 2023. He said Aurum acquired Napier for about A$18 million in scrip and that about A$40 million to A$50 million has been spent on it. He described “low-hanging fruit” at Napier and said the company sees opportunity to grow beyond 870,000 ounces.
He attributed some of the opportunity to limited drilling depth, stating that 93% of the resource is within 150 meters, and argued that Aurum’s drilling capacity could help address constraints that other companies face when cash is tight. He said another resource update was expected for Napier.
Strizek closed by listing milestones he said investors could watch for during the year, including:
- A Boundiali resource update
- A Napier resource update, with the aim of lifting it above 870,000 ounces
- A Boundiali PFS
- Environmental approval and a mining license
- A further DFS and another resource model in the second half of the year
He described the targets as “very ambitious goals” and “incredible value catalysts,” reiterating Aurum’s focus on scale in drilling and exploration as key differentiators.
About Aurum Resources (ASX:AUE)
Aurum Resources Limited engages in the exploration and development of mineral properties in Australia. The company primarily explores for gold. Its flagship project comprise the Penny South project located along the Youanmi shear system. Aurum Resources Limited was incorporated in 2021 and is based in West Perth, Australia.
