Aurum eyes majority stake in Spanish projects

Shares in Aurum Mining (AUR) climbed over 5% as it confirmed it was one step closer towards earning its majority stake in the Zamora and Salamanca projects in Spain.

In March 2011, Aurum entered into a joint venture with Ormonde Mining (ORM). The joint venture stated that Aurum could earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province by spending €500,000 (c£420,000) on exploration activities over an 18-month period.

On Tuesday, Aurum stated that it expected its expenditure on the joint venture to reach approximately €450,000 by the end of March 2012.

Shares in Ormonde Mining fell on the news.

Additionally, Aurum said that drilling was now taking place on the fifth and sixth holes of the nine-hole El-Fanco programme in the Zamora gold project.

"It is hoped the results of the programme will provide further strong evidence of a significant gold structure at the El Facho prospect," the company commented.

Of the nine holes drilled by Ormonde at El Facho prior to the current drilling programme, eight encountered gold mineralisation grading in excess of one gram per tonne (g/t). A recent hole encountered 3.4 g/t gold within an overall interval of 30 metres grading 1.6 g/t gold.

Finally, the joint venture is also expected to commence drilling at the "highly prospective" Peralonso permit area in Salamanca Province. "It is currently proposed that a three-hole drill programme will commence at Peralonso once the drilling at El Facho is completed," the company revealed.

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