UPDATE: Auric Mining has just announced a staggering $10.82 million in cash from its inaugural gold production at the Munda Gold Mine near Widgiemooltha. This crucial milestone comes after the company recorded $16.85 million in gold sales, signaling a transformative moment for this emerging player in Western Australia’s mining sector.
The first mining campaign, which concluded just two weeks ago, yielded 2,718 ounces of gold from 57,900 tonnes of ore transported to the Black Cat Syndicate’s Lakewood Mill in Kalgoorlie. The impressive head grade of 1.61 grams per tonne (g/t) gold coincided with a remarkable recovery rate of 90.67 percent at the mill.
Auric’s achievement has exceeded market expectations, establishing the company as one of the newest high-margin gold producers in the region. The average selling price of $6,200 per ounce reflects the current boom in gold prices and the efficiency of the Munda-Lakewood toll-treating agreement.
This initial success is particularly significant as Auric anticipates producing an additional 6,100 ounces by February 2024 from the starter pit, with all-in sustaining costs of just $2,635 per ounce. These figures underscore a remarkable opportunity for profit, as early projections had estimated the starter pit would generate only $5.3 million in free cash flow.
As the company prepares for its next milling campaign scheduled for mid-January, Auric has lined up a healthy 65,000 tonnes of ore that could yield up to 3,382 ounces of gold. If this batch performs similarly to the first, it could result in another windfall.
Looking ahead, Auric is gearing up for a significant upgrade at the Munda Main Pit, where detailed designs and economic analyses are underway. This pit is projected to host 3.65 million tonnes with a grade of 1.23 g/t, translating to 145,000 ounces of gold. With the gold price now exceeding A$6,000 per ounce, there is potential to expand these forecasts significantly.
Moreover, in a strategic move to enhance its long-term production capabilities, Auric recently acquired the historic Burbanks Gold Processing Plant for $4.4 million. This facility, previously closed since 2019, is located conveniently near Auric’s existing resources and is equipped to handle up to 180,000 tonnes per annum.
As Auric continues to expand its exploration and processing infrastructure, it is well-positioned to capitalize on the surging gold market. The company’s proactive approach in acquiring cost-effective assets and securing processing solutions is a testament to its commitment to becoming a major player in the Western Australian gold sector.
With gold prices on the rise and Auric’s rapid progress, the company is poised for substantial growth and profitability. Investors and stakeholders will be closely monitoring these developments as Auric Mining charts its course into the future.
