Auric Mining Ltd (ASX:AWJ) has produced a further 4,300 ounces of gold during its second campaign in the first stage of toll milling from Jeffreys Find Gold Mine near Norseman, WA, bringing total production to more than 6,000 ounces as of last Friday.
Processing is ongoing at the Greenfields Mill in Coolgardie with Auric’s joint venture partner, BML Ventures Pty Ltd of Kalgoorlie, putting through a second parcel of around 145,000 to 150,000 tonnes of ore to complete the first stage of mining Jeffreys Find.
A total of around 150,000 tonnes of ore has so far been delivered to Greenfields since the start of processing with the balance of about 36,000 tonnes to be hauled from the mine to the mill over the coming two weeks.
This is in line with the company’s target of processing 180,000 tonnes in total for stage one on budget within time, yield and budget parameters.
Auric expects the second processing campaign to be completed in early November 2023. That follows the first processing campaign where 1,721 ounces of gold was produced from a 36,180-tonne ore parcel.
Auric managing director Mark English said, “The first surplus cash is now spinning out the end. Very soon the current parcel of between 145,000 and 150,000 tonnes will be completely processed and gold despatched to the Perth Mint for sale.
"In total, we estimate over 180,000 tonnes will be processed from the stage one mining. A first parcel of 36,000 tonnes averaged 1.58 g/t and early indications are this parcel will do better.
“We acquired this tenement from Mincor Resources in September 2020, only months before our listing on the ASX. In around three years we have it producing cash. It is a terrific result and will allow us to inject millions into our ongoing development, principally at Munda Gold Deposit near Widgiemooltha.
“Based on what we already know we expect gross revenue generated from this first stage to be in excess of $28 million which means the partners in this project are going to split millions in surplus cash.”
First cash imminent
BML is incurring and paying all mining costs and expenses. After completing the first stage of mining, the partners will subtract all costs, including a cash retention for the second stage pit, before splitting the surplus cash proceeds on a 50:50 basis. This will provide Auric with a substantial cash boost, expected throughout October and November 2023.
The entire project life is short and final mining is expected to be completed late 2024/early 2025. The project budgeted for a gold price of A$2,600/ounce so the substantially higher price places the joint venture in a more favourable position.
Auric says it will regularly update the ASX market on production, yield, gross revenue and cash distributions.