Auric Mining Ltd (ASX:AWJ) is preparing to resume mining at the Jeffreys Find Gold Mine near Norseman in Western Australia and is confident that 2024 gold production will exceed the 9,741 ounces produced in 2023.
Stage two mining is expected to begin in March 2024 with mining equipment to be mobilised to the site next month.
Through a joint venture with BML Ventures Pty Ltd of Kalgoorlie, a grade control drilling program over a potential final pit started on January 11, 2024, and was completed on January 15.
Once results are received BML will finalise the modelling of a stage two pit.
“Hit the ground running”
Managing director Mark English said “We have hit the ground running in 2024. Grade control drilling by BML Ventures Pty Ltd is complete with samples at the laboratory.
"It won’t be long before mining gets underway at what promises to be another rewarding chapter for Auric.
“Our partner, BML of Kalgoorlie, is waiting on assay results before finalising the parameters for a final pit. Mining is anticipated to last between 9 and 12 months.”
Grade control drilling at Jeffreys Find Gold Mine.
More tonnes expected
Although final numbers have not yet been determined, Auric and BML expect that substantially more tonnes of gold ore will be mined in 2024 compared to 2023.
For stage one mining in 2023 a pit design was premised on a base gold price of $2,600 per ounce while for 2024 the design will be based on a gold price of $2,900 per ounce. The current gold price is around $3,070 an ounce.
“Last year 175,865 tonnes of ore were milled producing 9,741 ounces of gold. Whilst we don’t have figures yet, we are certain the number of tonnes of ore we’ll extract from Jeffreys Find will be substantially higher than last year. That’s the best possible news,” English said.
Approvals in place
“All approvals to mine are in place and BML is in final negotiations with a toll mill for the processing of multiple gold campaigns throughout 2024.
“Jeffreys Find is a straightforward deposit. We do not expect any surprises. Our second gold campaign of 2023 averaged 1.93 g/t.
"With the AUD gold price remaining above $3,000 per ounce, a similar or better result on stage two of Jeffreys Find would be a terrific result for Auric,” he said.
Auric has paid $1 million as working capital contribution to BML and apart from that payment, BML is incurring and paying all additional mining costs and expenses.
After completing this final phase of mining the two partners will subtract all costs before splitting the surplus cash proceeds on a 50:50 basis.