Auric Mining’s first toll milling campaign on gold-bearing ore from its Jeffreys Find mine has yielded 1721 ounces of gold – and more than $5 million in revenue.
But management says it is just the beginning, with a package of about 145,000 tonnes of ore still in haulage for processing.
Auric says recovery from the first ore parcel of 36,180 dry tonnes milled was 93.04 per cent for a reconciled head grade of 1.58 grams per tonne gold, which it says fits well with the estimated grade of the ore parcel. All of the gold produced has already been sold at an average price of $2939 per ounce, generating gross revenue of $5,057,527.
The company anticipates its first payment to land in October, once all costs are subtracted, providing it with a substantial cash injection. It will share the profits with joint venture (JV) and mining partner, BML Ventures, which is paying all associated costs and expenses.
Auric says all mining at Jeffreys Find has been completed and the remaining ore at grass is being hauled by BML to the Greenfields Mill in Coolgardie for toll treatment. Processing of the second batch will be undertaken in a single campaign, which it anticipates will begin early next month and will take up to seven weeks to complete.
Auric Mining managing director Mark English said: “This is a tremendous result for Auric, we couldn’t be happier. Nevertheless, it’s just the start. The second parcel of approximately 145,000 tonnes will be processed by the Greenfields Mill commencing early September 2023 in one batch, which is also terrific news. We now have confirmation of grade and plant recovery. With a gold price at around A$2,950/ounce, Auric will soon receive a substantial cash flow injection. This first phase of mining is playing out well; Jeffreys Find will be very profitable for Auric and BML Ventures”.
Management also says that while the initial resource is small and the total project life is short, the JV is in a more favourable position than expected because it had budgeted for a gold price of $2600 an ounce and that mark was substantially higher at the time of sale following the company’s first pour.
Auric appears to have achieved a great deal in a short time, going from purchasing Jeffreys Find to mining it, carting the ore and producing gold, all within 2.5 years of its listing on ASX boards on February 12, 2021.
If the company can now maintain its seemingly successful self-funding recipe and continues to sequester funds for subsequent mine start-ups, it will be able to continue to develop its Munda gold deposit at Widgiemooltha and charge forward with broader exploration.
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