Auric Mining has officially begun production at its Jeffreys Find project after receiving the green light from the Department of Mining, Industry Regulation and Safety, with its first gold pour expected in July.
The company immediately set to work after its full open-pit mine proposal at its project near the Western Australian town of Norseman received the tick of approval. The drill and blast of the first 5m bench has already been completed.
Mining contractor and business partner, BML Ventures, is set to be fully-mobilised on site with all mining activities operational by the end of this week.
As part of Auric’s deal with its partner, BML will incur and pay all costs in relation to mining the gold resources. The two companies will then retain an equal share of the net cash surplus after payment of all mining and processing costs.
Once the first stage of the operation is complete, BML is expected to expand the mine to the final pit design next year. Mining is predicted to be completed by the end of 2024. Between 100,000 and 150,000 tonnes of ore will be hauled later this month to Greenfields Mill in Coolgardie to be toll-treated before gold is poured and sent to Perth Mint for sale.
Auric Mining managing director Mark English said: “This is excellent progress by BML Ventures and Auric, a terrific achievement. Having the full mine proposal approved is fantastic, particularly given the high gold price. I commend both BML Ventures and our technical team in working together to achieve this result. I look forward to the next stage of mining and actually producing gold.”
Jeffreys Find’s gold deposit has a resource of 1.21 million tonnes grading 1.22 grams per tonne gold for a total of 47,200 ounces of gold. Metallurgical testwork undertaken by Auric has predicted gold recoveries of between 90 per cent and 95 per cent.
Auric was established to explore for gold and to develop the precious metal and other deposits in WA’s Widgiemooltha and Norseman areas. The company has 640 square kilometres of tenements over four project areas. At Widgiemooltha, its Munda deposit hosts a resource of 198,700 ounces of gold at a grade of 1.38g/t.
The company expects cashflow to be generated from mining at Jeffreys Find by late September to early October, which will sustain it and monetise its asset into cash.
Considering Auric only listed on the ASX as a pure explorer in February 2021, to be mining already is an incredible achievement. With a strong business plan in place and an experienced partner in BML, the future looks bright for the company, with all eyes on the final product when its first gold is poured in the new financial year.
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