Aurumin (ASX:AUN) has announced that activity to develop the Mt Dimer Gold Project has started.

The company said the project consists of two phases, and Phase 1 involves the mining of two shallow open pits at the Lightning and Golden Slipper deposits.

Phase 2 will involve the expansion of mining, including potential cutbacks on Lightning and Golden Slipper deposits.

Aurumin's managing director Brad Valiukas said the gold price remains very healthy: " We have a significant amount of capital in the ground, and it’s appropriate for us to realise a return on that investment and generate value for shareholders."