AuKing Mining Explores Copper Potential North of Sandiego Deposit with New Drilling Campaign

AuKing Mining Ltd (ASX: AKN) is taking advantage of the strong movements in the copper price with a drilling program to test the extent of copper mineralisation to the north of the Sandiego deposit.

Initial drilling will comprise 1000 metres of reverse circulation across 6 to 8 holes testing along a 700 metre target zone.

AuKing has allocated $100,000 budget and is seeking to identify a drilling contractor that may already be operating in the region.

The company intends to utilise a pXRF device to record the initial results from the drilling.

Paul Williams, CEO, commented:

“AuKing is now preparing a drilling program to test the extent of the mineralisation, which could have a substantial impact on the overall project economics of Sandiego.”

Sandiego is located at Halls Creek in north-eastern Western Australia.

Established mineral resource

The Sandiego deposit hosts a resource of 4.1 million tonnes at 1.4% copper, 4.3% zinc, 0.2g/t gold, 25g/t silver and 0.4% lead.

Adding to the potential, previous drilling by AuKing identified significant copper mineralisation 700 metres to the north of the deposit.

Highlights include; 5 metres at 1.37% copper from 50 metres; and 2 metres at 1.71% copper from 85 metres.

A Scoping Study from June 2023 focused on the development of a copper/zinc mining operation from a central processing facility at Sandiego.

Key metrics include:

  • Life-of-Mine of 11 years with an estimated total production of 110,000 tonnes of copper, 38,000 tonnes of zinc and 355,000 silver ounces
  • Pre-production Capex of A$134 million, with an estimated 2.45 years’ payback period
  • Robust pre-tax NPV of A$176.9 million and 39.7% IRR
  • Life of Mine EBITDA of A$443.8 million with an average operating cashflow of A$40.3 million per annum

Uranium potential

AuKing is also focussed on the exploration and development of six uranium and copper projects in Tanzania.

This includes the Mkuju project, located near to the world class Nyota uranium project in the south of the country.

Mkuju rock chips have already revealed very high results including 6,213ppm uranium and 1,344ppm uranium.

Asimwe Kabunga

The company has the experienced Asimwe Kabunga as executive chairman, who is a Tanzanian born Australian entrepreneur with multiple interests in mining and IT businesses around the world.

Kabunga is also the executive chairman for the $200 million capped Lindian Resources Ltd (ASX: LIN), and the company’s major shareholder.

Lindian’s Kangankunde Rare Earths Project is a globally significant rare earth resource in potential for size, grade and quality.

 

 

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