Auric Mining Ltd (ASX:AWJ) has produced more than 7,700 ounces of gold during stage one toll milling from Jeffreys Find Gold Mine near Norseman in WA, generating gross revenue of $16,612,642 from the sale of 5,667 ounces.
Auric expects total stage one production of 9,500 ounces of gold and toll milling is on track to meet this target having produced more than 7,700 ounces through last Sunday.
A total of 166,000 tonnes of gold ore has now been delivered to the Greenfields Mill at Coolgardie for processing with the company on track to reach the 180,000-tonne stage one target.
It expects to receive the first cash from these sales in the week commencing October 23, 2023.
Substantial cash boost coming
Auric’s partner, BML Ventures of Kalgoorlie, which is incurring and paying all mining costs and expenses, expects all ore to be transported from Jeffreys Find to the Greenfields Mill by Monday.
After the first stage of mining is complete, 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.
Auric says this will provide it with a substantial cash boost throughout October and November.
A “tremendous” result
Auric managing director Mark English said: “It looks as though the first stage mining of Jeffreys Find will produce more than 9,500 ounces.
"At this point of the campaign it’s running through the mill at almost 1.97 grams per tonne, but we have 15,000 tonnes of lower-grade ore at the end which will pull the average grade down slightly.
“Overall, it’s a tremendous result for Auric. I don’t know of any other junior miners in the last couple of years that have gone from tenement acquisition to mining and free cash in the timeframe we have.
“To date the stage one pit has delivered everything we predicted for the joint parties. Gross revenue from mining Jeffreys Find should exceed $28 million when it’s completed and produce more than $8 million in surplus cash.
"We expect first cash proceeds to Auric next week.”
Second stage mining planned
Auric is planning to begin a second stage mining of Jeffreys Find early next year. The entire project life is short and final mining is expected to be completed late 2024 to early 2025.
The project budgeted for a gold price of A$2,600/ounce. As a substantially higher gold price has been achieved, it has placed the joint venture in a more favourable position.
The cash generated for Auric mainly be used to develop the Munda Gold Deposit at Widgiemooltha.