Auric Mining Ltd (ASX:AWJ) has produced approximately 4,300 ounces of gold during its second campaign from the stage one pit at The Jeffreys Find Gold Mine near Norseman, WA.
Total production at October 6, 2023 now exceeds 6,000 ounces, with more gold expected as processing continues at The Greenfields Mill in Coolgardie.
As of that date, around 150,000 tonnes (in total) of ore have been delivered to Greenfields, with the balance of about 36,000 tonnes to be hauled over the coming two weeks.
Stage one will be completed following joint venture partner BML Ventures’ delivery of a second parcel of around 145,000 to 150,000 tonnes of ore to complete the first stage which will be done within time, yield and budget parameters.
The company expects over 180,000 tonnes will be processed from the stage one mining, with managing director Mark English saying, “The first surplus cash is now spinning out the end.”
Second processing campaign expected to finish in November
Auric Mining Ltd has thus far transported 113,000 tonnes of gold ore for processing in its second campaign, which began on September 10, 2023 and is slated for completion in early November.
This succeeds the first processing campaign that yielded 1,721 ounces of gold from a 36,180-tonne parcel of ore. On October 4, 2023, the Perth Mint Refinery hosted the company to feature the refining and processing of Jeffreys Find Gold.
“Very soon the current parcel of between 145,000 and 150,000 tonnes will be completely processed and gold despatched to the Perth Mint for sale. In total we estimate over 180,000 tonnes will be processed from the stage one mining,” English said.
“A first parcel of 36,000 tonnes averaged 1.58g/t and early indications are this parcel will do better.
“We acquired this tenement from Mincor Resources in September 2020, only months before our listing on the ASX. In around three years we have it producing cash. It is a terrific result and will allow us to inject millions into our ongoing development, principally at Munda Gold Deposit near Widgiemooltha.
“Based on what we already know we expect gross revenue generated from this first stage to be in excess of $28 million which means the partners in this project are going to split millions in surplus cash,” English said.
Costs covered
BML is taking care of all mining costs and expenses.
Upon the completion of the first mining stage, BML and Auric will deduct all costs, including a cash reserve for the second stage pit, and then divide the remaining cash proceeds equally.
This arrangement is projected to significantly augment Auric's cash flow in October and November 2023.
With a brief project lifespan anticipated to conclude between late 2024 and early 2025, the initial budget was based on a gold price of A$2,600 per ounce. A subsequent increase in gold prices has positioned the joint venture on more favourable financial grounds.