UPDATE: Auric Mining has achieved a remarkable milestone, securing $10.82 million in cash from its first gold mining campaign at the Munda Gold Mine near Widgiemooltha. The operation, which concluded just two weeks ago, resulted in gold sales totaling $16.85 million after costs. This impressive debut positions Auric as a significant player in Western Australia’s gold sector.
The first campaign involved processing 57,900 tonnes of ore at Black Cat Syndicate’s Lakewood Mill in Kalgoorlie, yielding 2,718 ounces of gold with a head grade of 1.61 grams per tonne (g/t). The Lakewood Mill achieved a stunning recovery rate of 90.67%, and Auric sold the gold at an average price of $6,200 per ounce.
These results have surpassed market expectations, catapulting Auric into the spotlight as one of the newest high-margin gold producers in the region. With 6,100 ounces anticipated from the starter pit by February 2024, and all-in sustaining costs projected at a lean $2,635 per ounce, the initial outcomes have proven to be a financial boon for the company.
Historically, Auric’s original model forecasted a mere $5.3 million in free cash flow across the first two mining stages, based on a gold price of $3,500 per ounce. However, the actual performance has nearly doubled those estimates, prompting a reevaluation of future mining strategies.
Auric has plans for an even larger second milling campaign at Lakewood, scheduled for mid-January, targeting an estimated production of up to 3,382 ounces. The upcoming run is set to generate another influx of cash if the ore performs as well as the first batch.
“What happens next could be even bigger,” Auric stated in its latest update.
Following the second processing campaign, Auric aims to initiate preparations for its more substantial project at the Munda Main Pit. This workflow will include detailed design and economic analysis, with the pit estimated to host 3.65 million tonnes grading 1.23 g/t for a total of 145,000 ounces of gold. Analysts suggest that with the current gold price exceeding A$6,000 per ounce, a revised cut-off grade could increase the indicated resource to 189,000 ounces.
Additionally, Auric has been expanding its operational footprint by acquiring the historic Burbanks Gold Processing Plant for $4.4 million. Located just south of Coolgardie, this facility has the potential to bolster Auric’s processing capabilities significantly and is within trucking distance of the company’s existing resources. Plans are in place to refurbish the plant, enhancing its capacity for future operations.
Moreover, Auric’s recent acquisition of the Lindsay’s gold project, which includes four key tenements at Gindalbie, positions the company to leverage existing infrastructure and capitalize on soaring gold prices. The Parrot Feathers open pit, previously mined for 6,153 ounces, offers an immediate opportunity for extraction.
Auric Mining is strategically situating itself as a critical player in Western Australia’s gold sector by securing cost-effective assets and expanding its portfolio. With gold prices continuing to surge, the company stands poised for significant growth and profitability in the coming months.
For ongoing updates and insights into Auric Mining’s developments, stay tuned.
