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ARUMA RESOURCES LIMITED Capital/Financing Update 2018

Jan 31, 2018

64273_rns_2018-01-31_498f4269-cabc-46ed-bcfd-46e2ff33419b.pdf

Capital/Financing Update

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1 February 2018

ASX Announcement

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INITIAL DRILL RESULTS CONFIRM NEW GOLD SYSTEM

ASX: AAJ

Capital Structure 437M Shares on Issue 12M Options on issue

HIGHLIGHTS

  • 40% of results received

  • Results confirm the Sediment Hosted Gold Model

  • Strong grades and thick gold mineralisation zones intersected

  • Mineralisation from surface

Board of Directors

Non-Executive Chairman Paul Boyatzis

Managing Director

Peter Schwann

Non-Executive Director

Mark Elliott

  • 95% of all drill holes intersected gold mineralisation

SIGNIFICANT DRILLING RESULTS

  • 5m @ 3.8g/t Au from 9m incl. 1m @ 15.6g/t Au from 10m (SDRC006) – 2m @ 4.2g/t Au from 92m to EOH (SDRC017)

  • 16m @ 1.3g/t Au from 8m incl. 7m at 2.1 from 11m (SDRC020)

Company Secretary Phillip MacLeod

Exploration Manager Kathryn Cutler

Active Projects

SLATE DAM GOLD PROJECT

BEOWULF GOLD PROJECT

RESULTS

Aruma Resources Limited (ASX: AAJ) is pleased to announce the results from the first 20 holes of its maiden drilling program at Slate Dam. The program was designed to test the large historical 7km[2] gold anomaly identified at Slate Dam (EL25/553).

The best results returned so far have been significant with 5m @ 3.8/t Au from 10m (SDRC006) and 7m @ 2.1g/t Au from 11m (SDRC020), Figure 1 and Table 1.

The true significance of the intersection in SDRC20 is the discovery of a mineralised zone of 16m @1.34g/t Au from 8m (including 7m @ 2.1g/t Au from 11m). The presence of outcropping mineralisation to the south of the drill hole is shown in Figure 2 below. All intersections are open along strike and more repetions are likely to occur to the east.

Aruma’s Managing Director, Peter Schwann, said;

Head Office

Level 1, 6 Thelma Street West Perth, WA 6005 T +61 8 9321 0177 F +61 8 9226 3764

E [email protected] W www.arumaresources.com

Postal Address

Locked Bag 2000, Nedlands, WA 6909

“These results justify the drilling the previously known gold anomalism. The extent of the historic gold anomaly is limited only by drilling and sampling and will continue in the favourable stratigraphic trends to the north and south. The decision to control the whole stratigraphic belt is now becoming important both at Slate Dam and Beowulf. Major producers are now acquiring land positions in the underexplored Kurnalpi-Bulong terranes.”

The drilling program was completed yesterday with 40 holes completed for 4,020m. Less than half the assay results have been returned to date, with the remaining results expected before the end of February.

ABN 77 141 335 364

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Figure 1. Slate Dam drill intercepts returned to date with the new lode in Purple.

The points to note in Figure 1 are the regular spaced repetitions of mineralisation and the apparent combination of structure and mineralisation in shales as predicted in the model. The red dashed trends are defined by gold anomalies below the new lode and are possibly extending above the new lode. This will be tested in the follow up drilling after all the data has been assessed.

Aruma Resources Limited (ASX: AAJ) | www.arumaresources.com | ABN 77 141 335 364 2

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Figure 2 Surface expression of the mineralised stratigraphy outlined by yellow dashed line (looking south)

Geology Summary

The lithologies intercepted were consistent and typical Archaean greenstone rock-types, namely conglomerate, greywacke, siltstone and shale. Where mineralised, the shale was sulphidic or iron stained after sulphides as predicted in the model. A full interpretation of geology will be done after all the assays are back and the historic drill core is studied prior to the next drilling phase.

The assay results reported are based upon 1m intervals where gold values >0.1g/t has been reported as anomalous, with significant grade zones >0.5g/t Au with no more than 2m internal dilution. A complete record of all results to date is shown in Tables 1, 2 and 3.

Some holes were terminated in mineralisation, due to issues with keeping samples dry and uncontaminated, due to the groundwater inflow. The drilling rig was upgraded to re-enter and extend these holes, and the results of these extensions will be released as soon as available.

For further information please contact: Peter Schwann Managing Director

Michael Cairnduff Media contact

Aruma Resources Limited Cannings Purple Telephone: +61 8 9321 0177 Mobile: 0406 775 241 Mobile: +61 417 946 370 Email: [email protected] Email: [email protected]

Aruma Resources Limited (ASX: AAJ) | www.arumaresources.com | ABN 77 141 335 364 3

Competent Person’s Statement

The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Schwann who is a Fellow of the AIG and Australasian Institute of Mining and Metallurgy. Mr Schwann is Managing Director and a full time employee of the Company. Mr Schwann has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve’. Mr Schwann consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

Forward Looking Statement

Certain statements contained in this document constitute forward looking statements. Such forward-looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. These estimates and assumptions while considered reasonable by the Company are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, achievements and performance of the Company to be materially different from the future results and achievements expressed or implied by such forward-looking statements. Forward looking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”, “may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar expressions. There can be no assurance that Aruma plans to develop exploration projects that will proceed with the current expectations. There can be no assurance that Aruma will be able to conform the presence of Mineral Resources or Ore Reserves, that any mineralisation will prove to be economic and will be successfully developed on any of Aruma’s mineral properties. Investors are cautioned that forward looking information is no guarantee of future performance and accordingly, investors are cautioned not to place undue reliance on these forward-looking statements.

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2018.

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Figure 1. Slate Dam significant assays >1g/t Au from RC drill holes SDRC001 to SDRC020

SLATE DAM >1g/t INTERSECTIONS SLATE DAM >1g/t INTERSECTIONS SLATE DAM >1g/t INTERSECTIONS SLATE DAM >1g/t INTERSECTIONS SLATE DAM >1g/t INTERSECTIONS SLATE DAM >1g/t INTERSECTIONS
Hole_ID Easting Northing RL Dip Azi Hole
Depth
From To Interval
(m)
Au (g/t)
SDRC001 395245 6603319 340 -60 65 94 54 55 1 2.1
SDRC006 395683 6602967 341 -60 65 100 10 15 5 3.79
incl 10 13 3 6.2
incl 11 12 1 15.6
100 60 61 1 1.6
SDRC013 396092 6602597 342 -60 65 112 93 94 1 4.2
SDRC014 396035 6602575 341 -60 65 118 25 27 2 1.24
SDRC017 396460 6602764 340 -60 65 100 14 15 1 1.79
SDRC017 396460 6602764 340 -60 65 100 92 94 2 4.21
SDRC020 396428 6602641 340 -60 65 80 8 32 24 1.03
incl 8 24 16 1.34
incl 11 18 7 2.07

Aruma Resources Limited (ASX: AAJ) | www.arumaresources.com | ABN 77 141 335 364 4

Table 2. Slate Dam significant assays >0.5g/t Au from RC drill holes SDRC001 to SDRC020

SLATE DAM SIGNIFICANT INTERSECTIONS

SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS SLATE DAM SIGNIFICANT INTERSECTIONS
Hole_ID Easting Northing RL Dip Azi Hole
Depth
From To Interval
(m)
Au
(g/t)
SDRC001 395245 6603319 340 -60 65 Incl. 54 55 1 2.1
Incl. 59 60 1 0.57
Incl. 92 94 2 0.53
SDRC002 395796 6603017 339 -60 65 Incl. 11 16 5 0.74
Incl. 52 53 1 0.57
& 58 60 2 0.83
& 64 65 1 0.56
& 78 79 1 0.72
SDRC003 395614 6602932 318 -60 245 Incl. 68 71 3 0.65
SDRC005 395637 6602946 340 -60 65 Incl. 21 24 3 0.94
& 38 39 1 0.54
SDRC006 395683 6602967 341 -60 65 Incl. 10 13 3 6.2
100 10 15 5 3.79
Incl. 11 12 1 15.6
Incl. 33 34 1 0.53
& 46 47 1 0.8
& 54 55 1 0.93
& 60 61 1 1.6
SDRC006 395683 6602967 341 -60 65 65 67 2 0.66
SDRC007 395752 6602997 340 -60 65 Incl. 8 14 6 0.53
Incl. 44 45 1 0.7
86 87 1 0.51
SDRC009 395688 6602859 341 -60 65 100 22 25 3 0.81
84 93 10 0.5
SDRC011 395949 6602756 340 -55 65 Incl. 2 8 6 0.97
100 79 100 21 0.55
SDRC012 396138 6602617 340 -60 65 100 15 24 9 0.69
SDRC013 396092 6602597 342 -60 65 112 15 23 8 0.64
112 32 33 1 0.51
112 93 94 1 4.2
Incl. 106 108 2 0.78
SDRC014 396035 6602575 341 -60 65 118 25 27 2 1.24
118 77 79 2 0.72
SDRC015 395989 6602555 341 -60 65 100 42 45 3 0.71
SDRC016 395944 6602533 341 -60 65 100 87 91 4 0.9
100 87 94 7 0.62
SDRC017 396460 6602764 340 -60 65 100 14 15 1 1.79
SDRC017 396460 6602764 340 -60 65 100 92 94 2 4.21
SDRC018 396420 6602757 340 -60 65 112 37 38 1 0.72
SDRC020 396428 6602641 340 -60 65 80 8 24 16 1.34
80 12 44 36 0.72

Aruma Resources Limited (ASX: AAJ) | www.arumaresources.com | ABN 77 141 335 364 5

able 3. Slate Dam anomalous assays >0.1 to <0.5g/t Au from RC drill holes SDRC001 to SDRC020

SLATE DAM ANOMALOUS INTERSECTIONS SLATE DAM ANOMALOUS INTERSECTIONS SLATE DAM ANOMALOUS INTERSECTIONS SLATE DAM ANOMALOUS INTERSECTIONS SLATE DAM ANOMALOUS INTERSECTIONS SLATE DAM ANOMALOUS INTERSECTIONS SLATE DAM ANOMALOUS INTERSECTIONS
Hole_ID Easting Northing RL Dip Azi Hole
Depth
From To Interval
(m)
Au (g/t)
SDRC001 395245 6603319 340 -60 65 94 48 62 14 0.23
82 94 12 0.13
SDRC002 395796 6603017 339 -60 65 94 2 17 15 0.43
44 79 35 0.24
89 94 5 0.21
SDRC003 395614 6602932 318 -60 245 73 67 74 7 0.34
SDRC005 395637 6602946 340 -60 65 43 19 41 22 0.27
SDRC006 395683 6602967 341 -60 65 100 45 84 39 0.24
SDRC007 395752 6602997 340 -60 65 100 3 18 15 0.38
43 60 17 0.18
77 91 14 0.19
SDRC008 395680 6602859 341 -60 244 106 66 73 7 0.2
SDRC009 395688 6602859 341 -60 65 100 32 60 28 0.12
SDRC010 395735 6602880 341 -60 65 100 26 37 11 0.17
66 78 12 0.2
91 99 8 0.15
SDRC011 395949 6602756 340 -55 65 100 3 25 22 0.35
19 25 6 0.13
38 72 34 0.23
SDRC013 396092 6602597 342 -60 65 112 105 110 5 0.46
SDRC014 396035 6602575 341 -60 65 118 14 28 14 0.32
SDRC015 395989 6602555 341 -60 65 100 20 33 13 0.19
40 52 12 0.27
SDRC018 396420 6602757 340 -60 65 112 2 13 11 0.24
61 69 8 0.22
100 106 6 0.37
SDRC019 396380 6602739 340 -60 65 106 38 64 26 0.28
70 76 6 0.3

Aruma Resources Limited (ASX: AAJ) | www.arumaresources.com | ABN 77 141 335 364 6

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APPENDIX 1 –

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections).

Criteria **JORC Code explanation ** Commentary
Sampling
techniques

Nature and quality of sampling (eg cut channels, random chips,
or specific specialised industry standard measurement tools
appropriate to the minerals under investigation, such as down
hole gamma sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad meaning of
sampling.

Include reference to measures taken to ensure sample
representivity
and
the
appropriate
calibration
of
any
measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to
the Public Report.

In cases where ‘industry standard’ work has been done this would
be relatively simple (eg ‘reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was pulverised to produce a
30 g charge for fire assay’). In other cases more explanation may
be required, such as where there is coarse gold that has inherent
sampling problems. Unusual commodities or mineralisation types
(eg submarine nodules) may warrant disclosure of detailed
information.

(RC) drill chips were sampled in 1m intervals from a rig-mounted cone-
splitter. The splitter was levelled at the beginning of each hole using a
bulls-eye spirit level. A sample of approximately 3kg was produced.
All samples were submitted for assay.
The splitter reject material was collected every metre in green bags and
put aside.

(HDD) core was submitted consistently every 1m, as well as based on
geological intervals and at geological contacts. Half core was sampled
throughout the hole.
Drilling
techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc) and details (eg core diameter,
triple or standard tube, depth of diamond tails, face-sampling bit
or other type, whether core is oriented and if so, by what method,
etc).

Reverse Circulation (RC)

Historical Diamond Drilling (HDD)

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Criteria **JORC Code explanation ** Commentary
Drill sample
recovery

Method of recording and assessing core and chip sample
recoveries and results assessed.

(RC) Sample recovery was visually estimated by volume for each 1m
bulk sample bag, and recorded digitally in the sample database. Very
little variation was observed.

(HDD) Core – Core measured by tape.

Measures taken to maximise sample recovery and ensure
representative nature of the samples.

(RC) The cone splitter was regularly cleaned with compressed air at the
completion of each rod.
Logging
Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies.

Whether logging is qualitative of quantitative in nature. Core (or
costean, channel, etc) photography.

The total length and percentage of the relevant intersections
logged.

(RC) All samples were geologically logged in full.
Logging is qualitative in nature, for geology, alteration, mineralisation,
and weathering.

(HDD) all core was logged in full including lithology, alteration and
structures.
Sub-
sampling
techniques
and sample
preparation

If core, whether cut or sawn and whether quarter, half of all core
taken.

If non-core, whether fiffled, tube-sampled wet or dry.

For all sample types, the nature, quality and appropriateness of
the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.

Measures taken to ensure that the sampling is representative of
the in-situ material collected, including for instance results for field
duplicates/second-half sampling.

Whether sample sizes are appropriate to the grain size of the
material being sampled.

(RC) Samples were taken using a static cone splitter. Material sampled
was dry, however could be wet from ground water intersected in the
drilling. The sample wetness was recorded in the logging.
The sample size is considered to be appropriate to the style of
mineralisation.
A separate sample is sieved from the splitter reject material into chip
trays and used for geological logging.
Duplicate samples were collected from the cone splitter directly off the
rig, every 50 samples.
Certified reference material samples were submitted to the laboratory
every 100 samples, to ensure 2 standards every sample batch.
Certified reference material submitted was similar in geological nature
and mineralogy to the type of mineralisation anticipated at this project.

(HDD) half core was sampled.
Quality of
assays data
and

The nature, quality and appropriateness of the assaying and
laboratory procedures used and whether the technique is
considered partial or total.

(RC) Samples were submitted to Intertek Kalgoorlie, where they were
prepared and processed and then sent to Intertek Perth for fire assay.
Fire assay is a total digestion method.

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Criteria **JORC Code explanation ** Commentary
laboratory
tests

For geophysical tools, spectrometers, handheld XRF instruments,
etc, the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors
applied and their deviations, etc.
The lower detection limit of 0.005ppm Au are considered fit for purpose.

(HDD) Samples were assayed for Au and As by fire assay at ALS
Kalgoorlie. Detection limit of 0.01ppm for gold analysis and 5ppm for
arsenic analysis.

Nature of quality control procedures adopted (eg standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (ie lack of bias) and precision
have been established.

(RC) Standard CRM was submitted every 100 samples, and duplicate
samples were taken every 50 samples.

(HDD) N/A
Verification
of sampling
and assaying

The verification of significant intersections by either independent
of alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

(RC) No independent geologists were engaged to verify results.
Aruma’s Project geologist is supervised by the Aruma Exploration
Manager. No adjustments were made to any assays or data.

(HDD) N/A
Location of
data points

Accuracy and quality of surveys used to locate drill holes (collar
and down-hole surveys), trenches, mine workings and other
location used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

(RC) All co-ordinate information was collected using a hand-held GPS
utilising GDA94, Zone 51.
Approximately 10% of holes in the drill program were surveyed down-
hole to determine any deviation.

(HDD)
Data
spacing and
distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for
the Mineral Resource and Ore Reserve estimation procedure(s)
and classifications applied

Whethersample compositinghas beenapplied.

(RC) drill holes were drilled on NE-SW traverses (065-245◦). The collar
locations are recorded in Table 1 of this release.
No sample compositing has been applied to the data.

(HDD) Diamond holes are sparse >200m apart.
Orientation
of data in
relation to
geological
structure

Whether the orientation is sampling achieves unbiased sampling
of possible structures and the extent to which this is known,
considering the deposit type.

If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have
introduced a sampling bias, this should be assessed and reported
if material.

(RC) Angled holes were drilled approximately orthogonal to the dip of
the target lithology. In places where the causeways built over the salt
lake ended, the rig drilled the opposite direction to test the extents of
lithologies.

(HDD) diamond holes were drilled either sub-vertical or orthogonal to the
dip of the stratigraphy.

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Criteria **JORC Code explanation ** Commentary
Sample
Security

The measures taken to ensure sample security.

Standard QAQC protocols followed.

Samples submitted to the laboratory at the end of the day they were
drilled.

(HDD) N/A
Audits or
reviews

The results of any audits or reviews of sampling techniques and
data.

(RC) Not applicable as no audits or reviews of sampling techniques
have been undertaken.

(HDD) N/A

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section).

Criteria **JORC Code explanation ** Commentary
Mineral
tenement and
land tenure
status

Type, reference name/number, location and ownership
including agreements of material issues with third parties such as
joint ventures, partnerships, overriding royalties, native title
intersects, historical sites, wilderness or national park and
environmental settings.

The security of the tenure held at the time of reporting along with
any known impediments to obtaining a licence to operate in the
area.

These results are from the Aruma Resources Ltd’s Slate Dam Project.
These results are on E25/553, which is owned 100% by Aruma Resources
Ltd, through a 100% owned subsidiary.
Exploration
done by other
parties

Acknowledgement and appraisal of exploration by other
parties.

Previous exploration of gold mineralisation has occurred on the Slate
Dam project, pre-dominantly through air core drilling for gold (Au) and
diamond drilling byDelta Gold andPlacer Dome.
Geology
Deposit type, geological setting and style of mineralisation.

The gold prospect is categorized as an orogenic gold deposit, with
similarities to most other gold deposits in the Yilgarn Craton. The Slate
Dam project is located within the Eastern Goldfields Superterrane
Greenstonesmade predominantly of volcanic/volcanoclasticrocks.
Drill hole
information

A summary of all information material to the understanding of
the exploration results including a tabulation of the following
information for all Material drill holes:
o
Easting and northing of the drill hole collar.
o
Elevation of RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar.
o
Dip and azimuthof thehole.

Drilling data is supplied in Table 1.

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Criteria **JORC Code explanation ** Commentary
o
Down hole length and interception depth.
If the exclusion of the information is justified on the basis that the
information is not Material and this exclusion does not detract
from the understanding of the report, the Competent Person
should clearly explain whythisisthe case.
Data
aggregation
methods

In reporting exploration results, weighting averaging techniques,
maximum and/or minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material and should be
stated.
Where aggregate intercepts incorporate short lengths of high
grade results and longer lengths of low grade results, the
procedure used for such aggregation should be stated and
some typical examples of such aggregations should be shown in
detail.

The assumptions used for any reporting of metal equivalent
values should be clearly stated.

(RC) As all samples are 1m intervals there has been no weighting
applied. Intervals are reported in a simple arithmetic mean grade.
Significant mineralisation considered >0.1g/t Au, with max internal
dilution of 5m, high grade zones considered >0.5g/t Au, with max 2m
internal dilution.

(HDD) N/A
Relationship
between
mineralisation
widths
and
intercept
lengths

These relationships are particularly important in the reporting of
Exploration Results.

If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (eg ‘down hole
length,truewidth not known).

(RC) For the holes drilled at -60◦the true thickness is approximately equal
to the interval thickness.

(HDD) diamond holes were drilled either sub-vertical or orthogonal to the
dip of the stratigraphy.
Diagrams
Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being
reported. These should include, but not be limited to a plan view
ofdrill hole collar locations and appropriate sectional views.

See figures in release. Collar details are published in Table 1.
Balanced
reporting

Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high
grades and/or widths should be practiced to avoid misleading
reporting of Exploration Results.

All currently received results have been reported.
Other
substantive
exploration
data

Other exploration data, if meaningful and Material, should be
reported including (but not limited to): geological observations;
geophysical survey results; bulk samples – size and method of
treatment; metallurgical test results; bulk density, groundwater,
geotechnical and rock characteristics; potential deleterious or
contaminating substances.

See release details.

==> picture [151 x 69] intentionally omitted <==

Criteria **JORC Code explanation ** Commentary
Further work
The nature and scale of planned further work (eg test for lateral
extensions of depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions
including the main geological interpretations and future drilling
areas, providedtheinformation isnotcommercially sensitive

Aruma plans to continue its planned 4,000m initial RC program at its Slate
Dam Gold Project.