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Aurum Resources (ASX:AUE) offers a compelling value proposition by primarily focusing on gold through its flagship Boundiali gold project located in Côte d’Ivoire, West Africa. Côte d'Ivoire's gold mining sector is experiencing significant growth and development as its political, legal, tax and operational risk metricsout performs most developing countries in the world.
The Boundiali gold project in Cote d’Ivoire is located within the Boundiali Greenstone Belt, which hosts Resolute’s Syama gold operation (11.5 Moz) and the Tabakoroni deposit (1 Moz) in Mali. Neighbouring assets also include Barrick’s Tongon mine (5 Moz) and Montage Gold’s Kone project (4.5 Moz).
The Boundiali gold project comprises four contiguous granted licenses: PR0808 (80 percent interest), PR0893 (80 to 88 percent interest), PR414 (100 percent interest), and PR283 (70 percent interest).
Company Highlights
- Aurum Resources is a precious metals company with exploration prospects in the same greenstone belt as the Syama (11.5 Moz), Sissingué (1.0 Moz), Tongon (5.0 Moz) and Kone Gold (4.5 Moz) deposits of West Africa.
- Upcoming catalysts include a maiden mineral resource estimate expected to be completed by the end of 2024. The company believes mineralization is open at depth and along strike and highlights the existence of numerous gold mineralization targets within the large land holding of Aurum’s Boundiali Gold Project.
- Aurum operates its own drill rigs, allowing the company to significantly reduce its exploration costs relative to peers.
- Management has a track record of creating value for shareholders from exploration through to project development, mine construction and gold production.
- Strong leverage to increasing gold prices that will benefit from a declining interest rate environment and rising global geopolitical risk factors.
- Well funded for greater than 12 months and over 100,000 metres diamond drilling programs and metallurgical study
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Aurum Resources
Investor Insights
Aurum Resources offers a compelling value proposition through its highly prospective gold asset in Côte d'Ivoire, a fast-emerging gold region in West Africa. It's cost-effective exploration strategy of drill rig ownership, also sets it apart from its peers.
Overview
Aurum Resources (ASX:AUE) is a mineral exploration company primarily focused on gold through its flagship Boundiali gold project located in Côte d’Ivoire, West Africa.
Côte d'Ivoire's gold mining sector is experiencing significant growth and development, with several key projects contributing to the country's economic expansion. The overall gold mining sector in Côte d'Ivoire is supported by substantial investments in infrastructure and exploration.
Geopolitically, Côte d'Ivoire outperforms most developing countries in the world in political, legal, tax and operational risk metrics. Additionally, Côte d'Ivoire continues to make notable strides in its political stability and Absence of Violence and Terrorism Index.
Aurum is led by a board and management team with considerable experience and a track record of success in the mining industry and a history of creating shareholder value.
Company Highlights
- Aurum Resources is a precious metals company with exploration prospects in the same greenstone belt as the Syama (11.5 Moz), Sissingué (1.0 Moz), Tongon (5.0 Moz) and Kone Gold (4.5 Moz) deposits of West Africa.
- Upcoming catalysts include a maiden mineral resource estimate expected to be completed by the end of 2024. The company believes mineralization is open at depth and along strike and highlights the existence of numerous gold mineralization targets within the large land holding of Aurum’s Boundiali Gold Project.
- Aurum operates its own drill rigs, allowing the company to significantly reduce its exploration costs relative to peers.
- Management has a track record of creating value for shareholders from exploration through to project development, mine construction and gold production.
- Strong leverage to increasing gold prices that will benefit from a declining interest rate environment and rising global geopolitical risk factors.
- Well-funded for greater than 12 months and over 100,000 metres diamond drilling programs and metallurgical study
Key Project: Boundali Gold Project
The Boundiali gold project in Cote d’Ivoire is located within the Boundiali Greenstone Belt, which hosts Resolute’s Syama gold operation (11.5 Moz) and the Tabakoroni deposit (1 Moz) in Mali. Neighbouring assets also include Barrick’s Tongon mine (5 Moz) and Montage Gold’s Kone project (4.5 Moz).
The Boundiali project area covers the underexplored southern extension of the Boundiali belt, where a highly deformed synclinal greenstone horizon traverses finer-grained basin sediments, and to the west, Tarkwaian clastic rocks lie in contact with a granitic margin. The project benefits from year-round road access and excellent infrastructure.
The first stage of drilling at Boundiali occurred in the fourth quarter of 2023 and the first quarter of 2024 for both the BM and BD tenements (BM1 and BM2; BD1, BD2 and BD3 targets) and was designed to test below-gold-in-soil anomalies oriented along NE trending structures. Having completed its initial exploration program, Aurum is now ramping up and undertaking a scout and step-back diamond drilling campaign with plans to increase its drilling fleet to include six rigs targeting a drilling rate of ~10,000 metres per month. The company expects to drill more than 45,000 metres of diamond core at Boundali to support an inaugural mineral resource estimate that is anticipated by the end of 2024.
Drilling costs are estimated at US$45 per metre, as Aurum owns all of its drilling rigs and employs its operators, representing a significant value proposition relative to peers who use commercial drilling companies that charge upwards of $200 per meter. The company believes there is potential for multi-million ounce gold resources to be defined with hundreds thousands meters of drilling over years within the Boundiali Gold Project’s land holding areas.
The Boundiali gold project comprises four contiguous granted licenses: PR0808 (80 percent interest), PR0893 (80 to 88 percent interest), PR414 (100 percent interest), and PR283 (70 percent interest). Historic exploration at PR0893 includes 93 AC drill holes and four RC holes. Airborne geophysical surveying, geological mapping and extensive soil sampling have also been performed at PR0893, while PR0808 has had 91 RC holes drilled for 6,229 metres along with geochemical analysis and modeling. Detailed geochemical sampling and drilling at PR414 revealed three strong gold anomalies and returned impressive high-grade results.
Following the renewal of its Boundali South (BST) exploration licence in September 2024, drilling at the Nyangboue deposit is ramping up. Previous exploration at BST has returned impressive results, including 20 m at 10.45 g/t gold from 38 meters, and 30 m at 8.30 g/t gold from 39 m.
In May 2024, Aurum entered a strategic partnership agreement to earn up to a 70 percent interest in exploration tenement PR283, to be renamed Boundiali North (BN). Aurum, through subsidiary Plusor Global Pty Ltd, has partnered with Ivorian company Geb & Nut Resources Sarl and related party (GNRR) to explore and develop the Boundiali North (BN) tenement which covers 208.87sq km immediately north of Aurum’s BD tenement. Further to this agreement, Aurum announced it has earned 51 percent project interest after completing more than 8,000 m of diamond core drilling. Aurum is continuing diamond drilling on the BM tenement targeting an initial JORC resource by late 2024.
Management Team
Troy Flannery – Non-Executive Chairman
Troy Flannery has more than 25 years’ experience in the mining industry, including nine years in corporate and 17 years in senior mining engineering and project development roles. He has a degree in mining engineering, masters in finance, and first class mine managers certificate of competency. Flannery has performed non-executive director roles with numerous ASX listed companies and was the CEO of Abra Mining until October 2021. He has worked at numerous mining companies, mining consultancy and contractors, including BHP, Newcrest, Xstrata, St Barbara Mines and AMC Consultants.
Dr. Caigen Wang – Managing Director
Dr. Caigen Wang founded Tietto Minerals (ASX:TIE), where he led the company as managing director for 13 years through private exploration, ASX listing, gold resource definition, project study and mine building to become one of Africa’s newest gold producers at its Abujar gold mine in Côte d’Ivoire. He holds a bachelor, masters and PhD in mining engineering. He is a fellow of AusIMM and a chartered professional engineer of Institution of Engineer, Australia. Wang has 13 years of mining academic experience in China University of Mining and Technology, Western Australia School of Mine and University of Alberta, and over 20 years of practical experience in mining engineering and mineral exploration in Australia, China and Africa. Other professional experience includes senior technical and management roles in mining houses, including St. Barbara, Sons of Gwalia, BHP Billiton, China Goldmines PLC and others.
Mark Strizek – Executive Director
Mark Strizek has nearly 30 years’ experience in the resource industry, having worked as a geologist on various gold, base metal and technology metal projects. He brings invaluable geological, technical and development expertise to Aurum, most recently as an executive director at Tietto Minerals’, which progressed from an IPO to gold production at the Abujar gold project in West Africa. Strizek has worked as an executive with management and board responsibilities in exploration, feasibility, finance and development-ready assets across Australia, West Africa, Asia and Europe.
What is De-Dollarization and is it Good or Bad? (Updated 2024)
Take Russia, for example. In June 2021, the country announced it was eliminating the US dollar from its National Wealth Fund — in doing so, it has reduced its vulnerability to western sanctions. More recently, the BRICS nations, a group made up of Brazil, Russia, India, China and South Africa, have made headlines for their efforts to set up their own currency.
What does this all mean? Well, stick with us as we delve into the details of de-dollarization.
In this article
How did the dollar become the world's reserve currency?
The US dollar has a storied history, originating in the early days of the United States. The US Mint was founded by the Coinage Act of 1792, establishing the dollar as the primary currency unit.
The dollar's value was initially set relative to gold and silver, and it has since undergone several changes, including adopting the gold standard in 1900. The gold standard was a monetary system in which currencies were tied to an established quantity of gold, facilitating price stability and reducing transaction costs in commerce across borders.
The US adopted the system with the Coinage Act of 1873, which continued until the Great Depression in the 1930s. The Bretton Woods Agreement of 1944 was a pivotal moment in the US dollar's history, as delegates from 44 countries agreed to peg their currencies to the dollar, which was, in turn, linked to gold. This solidified the US dollar's position as the primary trading currency.
The US dollar's rise to prominence as the world's reserve currency can be attributed to other factors as well. The Federal Reserve Bank was established by the Federal Reserve Act of 1913, which helped maintain price stability in the US dollar.
Additionally, during World War I, the US became the primary lender for many countries looking to buy dollar-denominated US bonds. By the end of World War II, the US had amassed most of the world's gold reserves, and the Bretton Woods Agreement had solidified the dollar's position as the international monetary standard.
Despite the eventual end of the Bretton Woods system in the early 1970s, the US dollar has retained its status as the world's reserve currency. Factors contributing to its dominance include:
- the stability of its value
- the size of the US economy
- the US' geopolitical influence
- the unparalleled market for US debt
Today, the US dollar remains the currency of choice for international trade and reserves, with major commodities like oil primarily bought and sold in US dollars, called petrodollars. However, with the recent de-dollarization trend and the emergence of digital currencies, the dollar's long-term future as the global reserve currency is uncertain.
What is de facto dollarization?
There are some countries that don't officially use the US dollar, but still experience unofficial de facto dollarization, a phenomenon in which residents of a country use a foreign currency, often the US dollar, for day-to-day transactions and for saving in hard currency. According to the International Monetary Fund, most developing countries have a limited form of dollarization. Countries with high levels of de facto dollarization are Argentina, Bolivia, Cambodia, Lebanon, Peru, Uruguay and Zimbabwe.
De facto dollarization is a concern in many developing economies, because it can limit the effectiveness of monetary policy, expose the financial sector to currency risk and increase the country's vulnerability to external shocks.
Nations with both official and unofficial dollarization are seeing the risks associated with it, and some are looking for alternatives, or at least ways to cushion that risk.
What does de-dollarization mean?
De-dollarization involves reducing the US dollar's dominance in global markets by substituting it as the primary currency for financial transactions, such as trading oil or other commodities, foreign exchange reserves and bilateral trade.
The US dollar's leading role in the global economy grants the US significant influence over other nations, and the country often uses sanctions as a foreign policy tool. As a result, some countries want to reduce their dependence on the dollar and challenge its dominance to insulate their central banks from geopolitical risks:
As mentioned, one of the groups leading this movement is the BRICS. The five emerging economies in the bloc have been working together on various issues, such as trade, finance and development. The BRICS countries have also been looking for ways to create a new reserve currency that could compete with the dollar.
One example of de-dollarization is the emergence of the petroyuan in response to the longstanding petrodollar system. China, now the world's top oil importer, has introduced a yuan-denominated oil futures benchmark to stimulate demand for its goods, services and securities, signaling a potential decline for the petrodollar.
Another indication of de-dollarization is the rise in central bank gold buying. Countries like China, Russia and India have been purchasing gold as a means to reduce their dollar holdings. Central banks have purchased more gold in recent years than they have since records began being kept in 1950. This trend highlights a shift in trust from the US dollar to gold as a safer haven, driven in part by the US and its allies' increasing use of financial sanctions.
Andy Schectman, president of Miles Franklin, discussed this weaponization of the US dollar and its role in the continuing de-dollarization trend with the Investing News Network (INN) at the Rule Symposium in July 2024.
"The rallying cry that's pulling all of this together is the weaponization of the dollar, and I would also argue the fact that we signed an executive order to go green ... we have in essence told the Saudi kingdom and OPEC, who gives us the dollar hegemony by pricing oil in dollars, that we're going to go green pretty soon, and if you're on the wrong side of us we're going to sanction your funds," he said.
Watch the full interview with Schectman here.
Schectman also had lots of insight to share on de-dollarization during a panel entitled "Will the BRICS survive a Trump Presidency" at the 2025 Vancouver Resource Investment Conference (VRIC) in January. Whether US President Donald Trump uses a carrot or a stick approach with BRICS members, the path toward de-dollarization will be hard to block. Schectman told VRIC attendees that he views Trump's tariffs as sanctions in another form, and the tariffs are likely to continue to give countries such as China a good reason to make further moves to dethrone the dollar.
He pointed to China and Saudi Arabia beefing up their gold reserves on the sly and China selling US bonds in Saudi Arabia as evidence of the aggressive posture toward de-dollarization.
"A lot of the things they're doing are going to be under the radar. For example, we've seen China say that they stopped buying gold for six months, yet the import/export numbers out of London and Switzerland betrayed that rhetoric," he said. "And in fact, there's a feeling that they've been buying 10 times as much gold as they said. Saudi Arabia, same thing. Oh, sorry, we forgot to report it to the IMF, but the import/export numbers caught it. So, I think this de-dollarization trend is going to continue."
China is also striking at the heart of the petrodollar system with the sale of US$2 billion in dollar-denominated bonds in Saudi Arabia in direct competition with US treasuries.
“That money then doesn't go back to the US,” Schectman said. "And I think what (China is) doing with this is saying, look, we can do this with all of our Belt Road Initiative countries. We can help them with their dollar denominated debt. It's a way for them to say, we can challenge you right now in the treasury market, don't mess with us.”
If US President Donald Trump continues to use tariffs as a proxy for economic sanctions on China, Schectman believes the Asian nation will continue to issue bonds in US dollars in order to compete on a parallel system with the United States.
It's worth noting that de-dollarization efforts, while offering advantages such as risk diversification, stronger national currencies and reduced vulnerability to US sanctions, also present challenges like transition difficulties, short-term instability and limited global acceptance of alternative currencies.
So while de-dollarization presents both opportunities and challenges for the global economy, businesses, investors and policymakers must understand these implications and adapt to the evolving nature of international trade and finance.
Will the dollar lose its reserve currency status?
Frank Giustra, a well-known Canadian businessman who is co-chair of the International Crisis Group, believes some form of de-dollarization appears inevitable, as in the wake of sanctions against Russia, countries are increasingly considering non-dollar trade agreements and central banks are reducing their dollar reserves.
If the US dollar was to lose its reserve currency status, what could take its place? There are 180 currencies recognized as legal tender in different countries and territories worldwide, and there are other reserve currencies like the euro, Japan's yen, Britain's pound and China's yuan. There are also growing digital currency options.
However, for now the US dollar's dominance remains clear — International Monetary Fund data shows that it makes up 57 percent of foreign exchange reserves worldwide. And even those who are of the opinion that a shift away from the US dollar is inevitable don't see it happening without major turmoil at a global scale.
"I don't think an orderly move from a dollar-based system to another currency or a (system based on a basket of currencies) can be an orderly one," explained Alfonso Peccatiello, founder of the Macro Compass, in an interview with INN.
"Generally in history such transitions between global reserve currencies have been with big geopolitical tensions — or in other words, with wars. So nobody wants that, but it is historically speaking the prerequisite to move from one currency-based system — the dollar — to another currency-based system."
Watch the full interview with Peccatiello above.
Giustra has expressed a similar opinion, saying that moves away from the US dollar could provoke inflation in the US, potentially leading to social and economic instability. For that reason, he believes the de-dollarization trend should be viewed by the administration as a matter of national security. He thinks the US should consider being open to dialogue regarding forming a new monetary system, which could potentially be backed by gold or other commodities.
Investor takeaway
De-dollarization is an ongoing trend that marks a shift away from the previously unrivaled US dollar in global trade and finance. Political tensions, the rise of non-US economic blocs and a desire for decreased reliance on the dollar are the driving forces behind this trend. De-dollarization is also playing a key role in prompting countries to pursue regional integration and bilateral relations while protecting against geopolitical risks.
Investors can prepare for a future in which the US dollar's dominance is less certain by diversifying their portfolios across various currencies and assets, such as gold or cryptocurrencies.
Additionally, learning about alternative payment systems or platforms that bypass the US dollar can open up new markets and services. Remaining open minded about different perspectives and scenarios emerging from de-dollarization will allow greater flexibility and adaptability in a changing financial landscape. By staying informed and flexible, investors can navigate the evolving financial landscape and capitalize on emerging opportunities.
This is an updated version of an article first published by the Investing News Network in 2024.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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