Auric Mining Ltd (ASX:AWJ) will begin grade control drilling at the Munda Gold Project in Western Australia shortly as it takes another step towards open-pit mining at the deposit.
The 380-hole program for 11,500 metres of drilling will significantly de-risk the project as the gold producer targets production from a starter pit late next year.
Auric published a scoping study for Munda in June, defining a production target of between 1.67 million tonnes at 2.2 g/t gold and 2.18 million tonnes at 1.9 g/t producing between 112,000 ounces and 129,100 ounces of gold.
Kalgoorlie-based Total Drilling Services Pty Ltd has been contracted to undertake the drilling, which will take six weeks to complete.
READ: Auric Mining delivers positive scoping study for Munda gold deposit in WA
“There are some complex geological elements within the deposit,” Auric managing director Mark English said.
“Results from the drilling program will help us better understand these elements and the resultant gold distribution.
“This will aid in significantly de-risking the project and allow us to plan the next steps.
“A scoping study for Munda completed mid-year shows us a path to more than $75 million free cash for a mine lasting three years.
“It’s our aim to have a starter pit producing gold in 2024 before expanding the mine in 2025 and beyond.
Munda optimised pit outline, starter pit and existing trial pit with proposed grade control drill holes.
More work to be done
In the coming months, the company aims to get a detailed mine plan and potentially mine permitting underway.
For this, it will undertake the following activities:
- An updated resource model and definition of an optimal grade control drill pattern for mining utilising results from the grade control program;
- geotechnical and hydrological studies;
- additional metallurgical test-work;
- a topographic survey;
- waste rock characterisation;
- fauna and vegetation surveys; and
- updated cost estimates for grade control, mining, drill and blast, and haulage.
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