The Jeffreys Find Gold Mine, operated by Auric Mining Ltd (ASX:AWJ), has successfully completed four weeks of mining operations on schedule and within budget.
With more than 30,000 tonnes of gold ore stored at the mine site's ROM pad, the company is preparing to transport the first batch of 30,000 tonnes for toll-treating at the Greenfields Mill in Coolgardie.
It is anticipated that the first gold pour will take place in late July, providing a significant boost to Auric's financial position in September or October 2023.
Right on track
Managing director Mark English expressed his satisfaction with the project's progress.
“We have hit the ground running,” he said. “Everything is going better than expected, including our partnership with BML. With the surging gold price well above our budgets, we expect to generate more cash than anticipated. We have a disciplined mining partner, and everything is right on track."
The joint venture between Auric and BML Ventures of Kalgoorlie aims to divide the surplus proceeds, after deducting all costs, on a 50:50 basis.
This arrangement will provide Auric with a substantial cash boost towards the end of the third quarter of 2023.
While the total project lifespan is relatively short, with final mining expected to conclude by the end of 2024, the current surge in gold prices has placed the company in a favourable position, exceeding the initial revenue projections based on a gold price of A$2,600 per ounce.
First shipment en route
To process the ore, Auric will use FMR's Greenfields Mill, which has a long-standing history as a toll milling facility and possesses the necessary procedures for processing ore from various clients. Once the gold is extracted, it will undergo further refinement at the Perth Mint.
With operations progressing smoothly and the first shipment of ore to be delivered to the Greenfields Mill, Auric Mining is poised to capitalise on the current market conditions, expecting a successful gold pour in the coming months.
The partnership with BML Ventures and the efficient mining processes implemented by Auric indicate a promising future for the Jeffreys Find Gold Mine project.