Aruma Resources : 28/09/2021 - Full Year Statutory Accounts

Published: 2021-09-28 02:42:21 ET AAJ.AX

ARUMA RESOURCES LIMITED

(ABN 77 141 335 364)

Annual Financial Report

30 June 2021

2 Aruma Resources Limited Annual Financial Report 2021

Contents

22 Directors' report

3 Aruma Resources Limited Annual Financial Report 2021

Corporate information

Directors

Share registry

Paul Boyatzis (Chairman)

Advanced Share Registry Services

Peter Schwann (Managing director)

110 Stirling Highway

Mark Elliott

Nedlands, Western Australia, 6009

T: +61 8 9389 8033

Company secretary

Phillip MacLeod

Solicitors

Fairweather Corporate Lawyers

Registered office

Unit 2, 589 Stirling Highway

Units 8-9, 88 Forrest Street

Cottesloe, Western Australia, 6011

Cottesloe, Western Australia, 6011

Auditors

Principal place of business

Elderton Audit Pty Ltd

Level 1, 6 Thelma Street

Level 2, 267 St George's Terrace

West Perth, Western Australia, 6005

Perth, Western Australia, 6000

T: +61 8 6389 1799

F: +61 8 9226 3764

Securities exchange listing

ASX Limited

Postal address

ASX Code: AAJ

PO Box 152,

West Perth, Western Australia 6872

www.arumaresources.com

4 Aruma Resources Limited Annual Financial Report 2021

Letter from the Board to Shareholders

Dear Shareholder

Your company, Aruma Resources Ltd ("Aruma" or "The Company"), is an active gold focused and lithium exploration company with a portfolio of strategically located projects in the Pilbara and Goldfields regions of Western Australia. The Company also holds a gold exploration project in the Lachlan Fold Belt, in New South Wales.

Over the past twelve months, despite the challenges brought on by the Covid 19 pandemic, the Company has focused on advancing its field work programs and exploration planning across its project portfolio,

This included targeted drilling and the strategic addition of new exploration licence applications. Two capital raisings were completed which raised a total of $3,052,000 (before issue costs) to support our exploration programs. We also received a $162,038 R&D tax offset (before costs). A further estimated R&D tax offset of approximately $330,000 is expected for 2021-22.

The Mt Deans Lithium Project has become a focus for Aruma against the background of a positive lithium environment. A new study has been carried out and drilling at the Project is planned before the end of calendar year, 2021. The Company is targeting large high-grade spodumene zones under multiple outcropping pegmatites, with tantalum and tin credits defined by shallow historic drilling.

Aruma holds two strategically located gold projects in the Pilbara; the Melrose Project, adjacent and encircling the 1M oz. Paulsens Gold Project, and the Saltwater Project, situated in a known historic gold area. A maiden 4,018m RC drilling program was completed at Saltwater during the year, and PoW for drilling at Melrose has been approved, and the Company anticipates drilling in the second quarter of the current year.

The Salmon Gums Gold Project comprises two Exploration Licences over an area of 222km2, south of the mining town of Norseman, in WA It is interpreted to share the same stratigraphy and similar structures to Pantoro's (ASX: PNR) rapidly developing high-grade zones at Scotia to the north.

The exploration licences covering the Capital Gold Project, in the Lachlan Fold Belt of NSW were granted in early 2021. A reconnaissance field visit was conducted in May, focusing on the Bywong area which has delivered historic gold production. The Company plans to divest the Capital Project, as current Covid- enforced travel restrictions preclude activity in NSW.

Aruma's project package has attracted the attention of a large group of investors, and they have given the company the financial ability to carry out aggressive exploration and expand the exploration team.

Consistent with the Company's focus on its current portfolio of projects, the Slate Dam and Clinker Hill Projects were sold for an all-cash consideration of $500,000.

The coming year will see aggressive exploration on the Company's projects, with the focus on initial evaluation of the strong lithium and gold trends on the four WA projects.

Finally, on behalf of the board I would like to thank all staff, contractors, and consultants for their valuable contribution during the year and thank old and new shareholders for their continued support during the past twelve months. I recommend all shareholders read this report to gain a further understanding of the Company's plans and projects.

Paul Boyatzis

Chairman

5 Aruma Resources Limited Annual Financial Report 2021

Review of operations

Exploration

Highlights

Aruma Resources Limited (ASX: AAJ) (Aruma or the Company) is pleased to provide the following report on its activities for the year ending 30 June 2021.

During the year, the Company continued to advance exploration planning and field work programs across its strategically located portfolio of active exploration projects, including; the Saltwater Gold Project and Melrose Gold Project in the Pilbara region of Western Australia, the Salmon Gums Gold Project (formerly Scotia South) and the Mt Deans Lithium-Tantalum Project, both in the Eastern Goldfields of WA.

Aruma's gold projects are all located in active gold mineralised belts proximal to significant gold discoveries, and exhibit characteristics of the Company's sediment-hosted gold exploration model. Aruma is of the view that its gold projects demonstrate the potential to host new, large high-grade gold discoveries.

The company also holds the 100%-owned Capital Gold Project, which covers an area of 372km2 within the Lachlan Fold Belt in New South Wales, in close proximity to Sky Metals' (ASX: SKY) Hume gold discovery.

As part of the consolidation of its project portfolio, Aruma also completed the successful sale of its Slate Dam Gold Project (including the Trojan resource) and Clinker Hill Gold Project to Black Cat Syndicate (ASX: BC8) for an all-cash consideration of $500,000.

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Disclaimer

Aruma Resources Limited published this content on 28 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2021 06:41:01 UTC.