Aurum Resources (AUE.AX) released an updated resource calculation on its flagship Boundiali gold project in Cote D’Ivoire last month. The total resources now stan at 125 million tonnes at 1 g/t gold for a total of 3.84 million ounces of gold. Almost 2/3rd of the total resource is now in the indicated category, which bodes well for an upcoming increase in the reserves (which currently stand at 1.21 million ounces of gold).
The reserves will be updated as part of the definitive feasibility study at Boundiali, which should be published by the end of this year. This should pave the way for an easy and fast investment decision which would mean the company remains on track for first gold in the first half of 2028.
With almost A$100M in cash on the balance sheet and an ongoing 150,000 meter drill program, Aurum is in an excellent shape to continue to add value at Boundiali. Also keep in mind it owns the 1.16 million ounce Napié gold project, also in Cote D’Ivoire. This means this A$260M market cap company is trading at an EV per ounce in the ground of A$33, which translates into less than US$25 per ounce in the ground.
Disclosure: The author has a long position in Aurum Resources. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
