Resource update raises gold potential

Aurum Resources, an Australian junior mining company, has increased the estimated gold resources at its Boundiali project in Côte d'Ivoire by 19%, bringing the total to 3.84 million ounces (119 tonnes) from 3.22 million ounces previously. The update includes a new deposit called BMT2, which is currently undergoing its first resource estimate and is the seventh deposit identified at the site.

Resource classifications and their significance

The updated resource base includes 2.3 million ounces classified as "indicated" resources and 1.5 million ounces as "inferred" resources. Indicated resources are based on more detailed geological data and offer a higher level of confidence compared to inferred resources, which are less certain but still considered viable for future development.

Path to reserves and feasibility study

Aurum Resources sees the significant portion of indicated resources as a potential boost to extractable reserves, which are crucial for the Boundiali mining plan. The company plans to use this updated resource base to revise its reserves as part of a definitive feasibility study (DFS), expected to be published by the end of the year.

Feasibility study details and next steps

According to a preliminary feasibility study (PFS) released in June, Boundiali is projected to produce 1.5 million ounces of gold over an 11-year mine life. The more detailed DFS will outline the technical and economic conditions for developing the mine and assess how changes in resource estimates might affect production. Once the DFS is complete, the company will make its final investment decision (FID), confirming its commitment to fund and develop the project.

Exploration and development challenges

In the meantime, Aurum Resources is increasing its drilling program to 150,000 meters for 2026, continuing exploration efforts at the site. However, transitioning to the construction phase will depend on securing a mining permit and raising the estimated $342 million in financing needed. The company aims to begin production by the first half of 2028.