Here's why the Aurumin share price is skyrocketing 35% on Monday

Aurumin shares are off to a flying start for the week.

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Key points

  • Aurumin shares surge 34.78% to 15.5 cents during late afternoon trade 
  • The company released its assays results from its first drill hole at the Central Sandstone Gold Project 
  • A total intersection of 344 metres at 1.29 grams per tonne (g/t) of gold (Au) was recorded 

The Aurumin Ltd (ASX: AUN) share price is on the move today.

This comes after the Australian gold miner released its first assays results from its wholly-owned Central Sandstone Gold Project.

At the time of writing, Aurumin shares are up 34.78% to 15.5 cents apiece.

What were the results?

In its release, Aurumin announced that assay results were returned for the first hole from its current drilling campaign.

The goal of the reverse circulation (RC) and diamond drilling program is to extend and better define the existing mineral resource estimate (MRE) at Two Mine Hill.

On the first hole, RC drilling took place as a pre-collar to a depth of 109.5 metres before the diamond drilling took over. This was extended to a depth of 582.5 metres.

The visible gold showed a total intersection of 344 metres at 1.29 grams per tonne (g/t) of gold (Au).

A breakdown of these results includes:

  • 40.9 meters at 2 g/t Au from a depth of 243.5 metres
  • 21.8 meters at 2 g/t Au from a depth of 363.9 metres
  • 16.1 meters at 2.9 g/t Au from a depth of 409.9 metres
  • 19.3 meters at 2 g/t Au from a depth of 528.7 metres
  • 22.2 meters at 2.5 g/t Au from a depth of 555 metres

Aurumin managing director, Brad Valiukas touched on the outstanding result saying:

We are very happy with how Sandstone is progressing. We have been expanding our tenement footprint, looking for new deposits and advancing the 500koz Au Two Mile Hill underground deposit with deep holes.

This is a great result from our first hole at Two Mile. We look forward to further results, with the 4th diamond drill hole and programme now completed.

We continue to see the Two Mile Hill underground deposit as a key part of the project going forward, with the scale to potentially underpin future production.

Aurumin share price summary

Despite today's euphoric gains, it has been a disappointing 12 months for Aurumin investors.

The company's shares are down 22.5% since this time last year, with year-to-date falling almost 14%.

Aurumin presides a market capitalisation of roughly $12.56 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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