In a significant milestone, Auric Mining Ltd (ASX:AWJ) has revealed the completion of the first stage mining and processing phase, resulting in the production and sale of 1,721 ounces of gold from a 36,180-tonne ore parcel.
During the sale, each ounce of the gold was priced at an average of A$2,939, generating a gross revenue of more than $5 million.
Highlighting the progress at the Jeffreys Find mine, Auric wrapped up mining of the Stage 1 pit. However, the haulage of ore to the Greenfields Mill remains in progress.
Looking ahead, the company anticipates processing about 145,000 tonnes in their upcoming toll milling program, which is slated to kick off in early September 2023.
What’s more, all of the remaining ore is expected to be processed during this singular milling program, spanning an estimated six to seven weeks.
“Just the start”
Auric managing director Mark English said: “This is a tremendous result for Auric, we couldn’t be happier.
“Nevertheless, it’s just the start.
“The second parcel of approximately 145,000 tonnes will be processed by the Greenfields Mill commencing early September 2023 in one batch, which is also terrific news.
“We now have confirmation of grade and plant recovery.
“With a gold price at around AUD$2,950/ounce, Auric will soon receive a substantial cash flow injection.
“This first phase of mining is playing out well, Jeffreys Find will be very profitable for Auric and BML Ventures Pty Ltd,”
Mark English, managing director, holding a newly poured gold bar.
Substantial cash boost
After completing the first phase of mining the partners will subtract all costs, including a cash retention for the second stage, before splitting the surplus cash proceeds on a 50:50 basis.
This will provide Auric with a substantial cash boost, commencing in October 2023.
Total project life is short and final mining is expected to be completed by the end of 2024/early 2025.
The project budgeted for a gold price of A$2,600 per ounce.
A substantially higher gold price, currently A$2,950 per ounce, has now placed the joint venture in a more favourable position.