Auric Mining Ltd (ASX:AWJ) has achieved what it calls “terrific” results during stage one production at the Jeffreys Find Gold Mine near Norseman.
As of October 27, a total of 8,293 ounces of gold have been sold, generating substantial gross revenue of $24,833,081 for Auric and its joint venture partner BML.
Higher-than-budgeted gold price
Moreover, gold production from the campaign has surpassed 9,400 ounces, with 1,264 ounces of gold being sold at The Perth Mint on the same date, fetching $3,958,740 at a rate of $3,131 per ounce.
The successful completion of the milling process, involving more than 176,000 dry metric tonnes, marks a big milestone for the project.
The next cash distribution to Auric is anticipated in the week commencing November 6, 2023, with BML covering all mining costs and expenses.
Following the completion of stage one mining, both partners will calculate and deduct all associated costs, including a cash retention for the stage two pit. Subsequently, the surplus cash proceeds will be evenly divided on a 50:50 basis.
Looking forward, stage two mining of Jeffreys Find is slated to commence early in 2024, with the entire project expected to conclude by late 2024 or early 2025.
Initially budgeted for a gold price of AUD$2,600 per ounce, the substantially higher current gold prices have significantly improved the project's outlook.
Excellent production
The surplus cash generated by Auric will primarily be allocated to advancing the development of the Munda Gold Deposit at Widgiemooltha, in addition to supporting other exploration and working capital needs.
“All the ore has been milled with the last of the gold passing through the system at the Greenfields Mill and at Perth Mint. Jeffreys Find Stage One production will be close to 10,000 ounces,” said Auric managing director Mark English.
“With gold prices at near record highs, together with excellent production, the project is expected to produce more than $9.0 million total surplus cash for the two partners. A terrific result for both of us.
“We will soon complete all processing and gold sales for stage one. Both parties are enthusiastic about getting into stage two early in 2024. We expect stage two to also be very friendly to us and not provide anything unexpected.”