Auric Mining Ltd (ASX:AWJ) has received its first surplus cash distribution from gold sales of ore from the Jeffreys Find Gold Mine in Western Australia, netting $2.2 million. Shares were up as much as 6.25% this morning on the news.
1,361 ounces of gold were sold at the Perth mint on Friday at $3,130 per ounce, realising gross profit of $4.26 million.
Gross revenue for stage one of the project – which is held in joint venture (JV) with BML Ventures Pty Ltd – has now reached $20 million and Auric expects to receive further cash payments throughout November 2023.
“Assured of an excellent result”
“We’re at the business end of a great second campaign. It will be a terrific result with all the numbers pointing towards more than 9,500 ounces of gold produced in this first phase,” Auric Mining managing director Mark English said.
“The $2.2 million cash for Auric is right on cue. If the price of gold holds at current levels, then Jeffreys Find will produce more than $8 million surplus cash in total for the partners.
“We still have a couple of weeks to go but are now assured of an excellent result.”
A total of about 160,000 tonnes of ore has now been milled from Jeffreys Find, with the Greenfields Mill on track to finish processing by early November 2023.
Mining will resume in early 2024, but the project life is short and final mining is expected to be wrapped up by late 2024 or early 2025.
Auric intends to use the cash generated by Jeffreys Find to progress the development of the Munda Gold Deposit at Widgiemooltha.