Auric Mining Ltd (ASX:AWJ) has transitioned to a gold producer after completing the first toll milling and processing of its first parcel of gold ore from Jeffrey’s Find.
Final refining will now be done at the Perth Mint, where AWJ has sent all gold doré from the first milling campaign.
As we reported on August 4, Auric was on the cusp of completing the toll milling and processing of the first batch of 36,000 tonnes of ore from the Jefferys Find Gold Mine – a joint venture between Auric and Kalgoorlie-based gold mine developer BML Ventures Pty Ltd.
BML stockpiled more than 100,000 tonnes of ore on the mine site ROM pad, for transport to the mill to be processed.
Milestone achieved
“Today is an exciting milestone for Auric and our shareholders. We have gone from purchasing Jeffreys Find to mining it and producing gold within 2.5 years of our ASX listing,” Auric managing director Mark English said.
“There is a lot more work to be done, results to be received and cash generated from this stage one mining of Jeffreys Find.
Read more: Auric Mining days away from Jefferys Find’s maiden gold pour
John Utley, Catherine Yeo and Mark English holding a newly-poured gold bar.
BML will incur and pay all mining costs and expenses and when the first phase of mining is finished, the partners will subtract all costs, including a cash retention for the second stage.
Surplus cash proceeds will be split on a 50:50 basis.
Through the arrangement, Auric will receive a substantial cash boost, expected in September/October 2023.
The company said the project was on target to achieve its first phase ambition of mining and processing 150,000 to 180,000 tonnes from the mine.
While the project life is short, expected to be completed by the end of 2024/early 2025, it could be quite lucrative with the project budgeted for a gold price of A$2,600/ounce against a substantially higher gold price, which currently sits at A$2,950/ounce.