MELBOURNE, Australia--(BUSINESS WIRE)--Aurum, Inc ("Aurum") (OTCBB:AURM) is pleased to announce that it has entered into an agreement with Argonaut Resources NL, an Australian listed corporation ("Argonaut"), to earn a 51% interest in Argonaut's 70% held Century Concession ("Century") in western Laos.
Argonaut, through a wholly owned subsidiary, holds a 70% interest in Argonaut Resources (Laos) Co. Ltd. ("ARL") which holds a 100% interest in the 223 square kilometer (55,105 acres) Century concession in Laos.
Under the terms of the agreement, Aurum will be appointed the manager of the Century Thrust Joint Venture Agreement ("JVA") which currently exists between Argonaut and two other parties, and will have the right to earn a 51% beneficial interest in the Century concession. In order to acquire this interest, Aurum must spend US$6.5 million on exploration within five years. The five year period includes an initial one year assessment period. Aurum is also in negotiations for the purchase of the 30% interest in the concession not held by Argonaut which is held by the two other parties. The agreement between Aurum and Argonaut is subject to the completion of a condition subsequent.
Century is located approximately 150 km north west of the capital city Vientiane on the highly prospective Loei-Luang Prabang fold belt, a prominent, regionally mineralized belt, which stretches from Thailand in the south, to Laos in the north (See Figure 1).
Century is an advanced stage exploration project with four priority areas 'drill-ready' for early resource definition drilling. Numerous extremely encouraging high grade gold intersections, which have been previously reported1, are ready for immediate follow up. A valuable, high quality geological database has been collected from multiple previous exploration programs involving soil sampling, pan concentrate sampling, stream sediment sampling, rock-chip sampling, topographic surveying, geological mapping, trenching, and drilling. The four priority prospects will be the focus of the upcoming drilling program in Aurum's first field season. Aurum has planned an aggressive drilling program for the current dry season which will focus on defining the potential gold resources surrounding the numerous gold intercepts previously discovered1. The projects all benefit from pre-existing infrastructure including access tracks, drill pads and exploration camps which greatly reduce the cost and time involved with beginning Aurum's planned exploration program.
1 http://www.argonautresources.com//media/ASX_Houai_Khouay_10Feb09.pdf
http://www.argonautresources.com//media/Houai_Khouay_100708.pdf
http://www.argonautresources.com//media/ASX_ConfirmsTrenchResults_17Jan07.pdf
http://www.argonautresources.com//media/ASX_ExplorationUpdate_7Jun06.pdf
http://www.argonautresources.com//media/ASX_SolidprogressgolddiscoveryatCentury_28Apr06.pdf
http://www.argonautresources.com//media/ASX_GoldSurfaceIntersectionsKhokhe_14Mar06.pdf
A full review and validation of the geological database is currently underway and a detailed overview of previous gold intersections for the Century project will be reported in the coming weeks.
Recognition of the potential size of the resource endowment contained in the Loei-Luang Prabang belt is growing due to the recent history of major discoveries and mining developments. On the Thailand side of the belt several prominent and highly profitable mining operations and feasibility stage projects are currently underway, including Kingsgate Consolidated's Ltd expanding Chatree gold mine (~5Moz's Au) and PanAust Ltd's Puthep Cu-Au deposit (0.9Mt Cu, 0.5Moz's Au) (See Figure 1). On the Laos side, PanAust Ltd has two active mining operations, Phu Kham Cu-Au mine (1Mt Cu, 1.6Moz's Au) and Ban Houayxai Au mine (1.6Moz's Au, 11Moz's Ag), and an impressive portfolio of advanced stage exploration/resource projects. In addition to these major projects, there are numerous mineral occurrences with small scale mining operations all along the Loei-Luang Prabang belt. This list of significant resource and mine developments coupled with the highly underexplored nature of Laos highlights the exciting mineral potential of this region.
Aurum is well established in Laos with administrative offices, government/community contacts, and technical expertise. An intimate knowledge of the mineral potential and operational environment is founded in the personal background and experience of the core members of the company's management and technical teams who have worked and lived in the country for many years. The company is encouraged by the progress made thus far as it continues to be aggressively engaged in regional exploration with the aim of acquiring a portfolio of highly prospective concession areas.
The Century Concession earn-in agreement is an important development for Aurum providing the company with a high quality initial project which has great potential for becoming a gold producing asset. The agreement also gives Aurum a solid operational foothold in the country, which is a critical first step in realizing the company's long term growth plans to become a significant explorer and miner in Laos.
Forward-Looking Statements
Forward-looking statements in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the risks of exploration and development stage projects, risks associated with environmental and other regulatory matters, mining risks and competition and the volatility of mineral prices. Actual results and timetables could vary significantly. Additional information about these and other factors that could affect the Company's business is set forth in the Company's filings with the Securities and Exchange Commission.