Auric Mining is basking in a $10 million cash pile after selling 14,853 ounces of gold in the 12 months to December from the second stage of mining at its Jeffreys Find gold mine at Norseman in Western Australia. Total revenue from gold sales for the period reached a remarkable $58.7m at an average price of $3952 per ounce gold.
The final tally for 2024 brings total sales of gold since the start of mining in 2023 to almost 25,000 ounces.
With an additional 60,000 tonnes of ore – holding nearly 3,000 ounces of gold – still stockpiled on the run-of-mine pad at Jeffreys Find, the total gold haul is set to climb even higher.
The final count is expected to jump to more than 30,000 ounces of gold when processing capacity opens at a nearby mill. In addition, gold remains in the circuit at Three Mile Mill at Coolgardie and some gold retained by the mill is yet to be sold.
This would far exceed initial estimates and mark a remarkable outcome for a mine that for many years was regarded as an ugly duckling.
With mining only just completed a week ago at Jeffreys Find, Auric says a significant portion of surplus cash from its operations is still held with its joint venture partner BML Ventures until final reconciliations, additional gold sales and mining costs are accounted for.
Auric expects further cash distributions during the current quarter as the mine winds up after three successful mining campaigns.
The December quarter has created substantial value and opportunities for Auric Mining, reflecting strong operational progress and strategic advancements across our portfolio.
With an eye to the future, Auric is now setting its sights on the next gold mining project at Munda, 5 kilometres west of Widgiemooltha in WA.
Having recently completed an updated resource estimate and prefeasibility study at site, the company is pushing forward with plans in March to mine out a starter pit holding 7400 ounces of gold grading 1.8 grams per tonne (g/t) in reserves, pending permit approvals.
Key regulatory applications, including a mining proposal and mine closure plan, have been submitted to the mines department with approvals expected shortly.
Although the starter pit holds a relatively modest amount of gold, reconciling the recovered ounces will provide a critical insight into the accuracy of the overall resource model of the bigger 145,000-ounce orebody, prior to ramping up a full-scale mining and toll treatment operation at site in 2026.
Further grade control drilling on a tight 5 metre by 5m grid is also underway to help improve understanding of the overall deposit.
At the company’s early-stage Spargoville gold project, 35km southwest of Kambalda in WA, a 17-hole reverse circulation program has continued to jag good hits at the Fugitive and Anomaly 37 prospects, including 3m at 10.36g/t gold as part of a 7m intercept running at 4.88g/t gold and 2m grading 10.69g/t gold.
When the data is crunched, Auric expects to lay out plans for a further drill program during the year to chase up on the mineralised trends and target areas with the highest chance for hitting paydirt.
During the quarter Auric also made a conditional move to buy the Burbanks gold processing plant, 9km south of Coolgardie, for a remarkably cheap price of $4.4m. The 180,000-tonnes per annum (tpa)facility is strategically positioned near the company’s existing resources and could offer a cost-effective, in-house processing solution.
However, a lot of work needs to be done before that thought becomes reality.
To maximise its potential, Auric is running the numbers to see what capital investment is needed to expand the plant’s capacity to 500,000tpa. A big part of the appeal of the deal is that the plant comes with existing mining licences and is already hooked up to the main power grid with all the required regulatory permits in place to fast-track any expansion.
To gain an exclusive due diligence period until mid-February, the company has tinned up a non-refundable $100,000 deposit allowing it to do a thorough assessment of the plant’s technical, operational, licensing and legal framework. If everything checks out settlement is expected by March 15.
As an important footnote to what appears to have been a massively busy quarter for the company, Auric closed a significant deal with the Ngadju Native Title Aboriginal Corporation to secure a blanket native title agreement across the company’s total tenure. The deal covers the Marlinyu Ghoorlie people to the north and Ngadju to the south.
This pre-emptive agreement is unique in its construction, giving Auric ongoing access to its entire grounds and could provide a template for similar style deals with other miners going forward.
Auric has kicked off 2025 in rare financial form with $3.6m in the bank and about $6.5m sitting in escrow ahead of final distribution from Jeffreys Find.
With cash flows from gold production starting to take off along with several promising projects on the horizon and a booming gold price – currently trading at all-time highs of US$2800 (A$4500) per ounce – the company appears to have mastered the art of making hay while the sun shines.
2025 looks as if it could be a game-changing year for the junior miner.
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