Auric Mining Ltd (ASX:AWJ) believes its Munda Gold Project in Western Australia will be a “sizeable cash contributor" after the gold producer delivered numerous high-grade results from the first phase of grade control drilling that began in November last year.
The company received assays for 244 holes from a total of 351 holes for 10,895 metres completed so far at the flagship project, which included broad intercepts at a 0.5 g/t gold cut-off such as:
- MGCR0401 - 16 metres at 12.54 g/t gold;
- MGCR0057 - 9 metres at 21.37 g/t, including 1 metre at 184.60 g/t;
- MGCR0007 - 4 metres at 20.13 g/t, including 1 metre at 77.18 g/t; and
- MGCR0372 - 4 metres at 18.84 g/t, including 1 metre at 68.94 g/t.
Munda optimised pit outline, starter pit and existing trial pit with completed grade control drill holes.
“It is terrific to be back drilling and concentrating on Munda,” Auric managing director Mark English said.
“The drilling results to date have provided many high-grade gold intersections.
“Only 70% of the assay results have been received, so we don’t have a complete understanding, but we are excited with the gold results so far."
Other exploration work completed
A seven-hole reverse circulation (RC) drilling program is underway to test several drill targets about 1 kilometre to the east of the Munda deposit, within the mining lease M15/87.
The drill rig operated by Kalgoorlie-based Kennedy Drilling will then drill 10 grade-control holes to add to the data for two areas of mineralisation defined so far under the program.
Meanwhile, a detailed topographic survey covering most of M15/87 and a section of the planned haul road within Miscellaneous Licence, L15/414, has been completed by Spectrum Surveys.
Samples of potential waste rock types and ore stockpiles have been submitted for acid mine drainage tests, while other ore types from the grade control drilling are undergoing metallurgical sampling.
Firm focus
“It will take more time to fully analyse the data from the 10,985 samples collected and then to define the way forward," English said.
“We believe that Munda will become a sizeable cash producer for Auric.
“Last year’s scoping study showed 112,000 to 129,100 ounces of gold can be mined from Munda.
“Munda is where our efforts are focused.”
The project’s resource model will be updated once all results from the drill program are received.