BML, a mining contractor based in Kalgoorlie, is currently covering all the costs associated with mining the gold resource at Jeffreys Find and then sharing the net cash surplus equally with Auric. This arrangement has provided Auric with a significant financial boost.
Auric Mining’s managing director, Mark English, expressed satisfaction with the results, stating, “Stage One of mining has taken six months – not long to generate almost $30 million in gross revenue and $9.5 million in total surplus cash to be split by the partners.”
Established in 2020, Auric Mining focuses on exploring for gold and other deposits in the Widgiemooltha and Norseman areas of Western Australia, holding 640 square kilometres of tenements in four project areas.
The revenue generated from the Jeffreys Find project will enable Auric to invest millions of dollars into the ongoing development of its 100 per cent-owned Munda gold deposit near Widgiemooltha. Management views Munda as its “big game” due to its substantial resource and strategic location.
Munda currently hosts a resource of about 198,700 ounces of gold at a grade of 1.38g/t and is located near the mining town of Kambalda. A recent scoping study outlined a cashflow surplus of $76.9 million under a base-case scenario, highlighting the potential of the Munda project.
Auric has already initiated a grade-control drilling campaign at Munda and aims to have a starter pit producing gold as early as this year, with plans to expand the mine in 2025 and beyond.
The success of the Jeffreys Find project has provided Auric with the financial resources to pursue its larger plans for Munda. This has been reflected in the doubling of Auric’s share price last year, indicating investor confidence in the company’s direction.
Additionally, with only 130 million shares on issue, any future dividend paid by Auric won’t have to feed too many mouths, potentially appealing to investors seeking a promising return on investment.
Insight: Auric Mining’s successful partnership with BML has not only provided the company with a significant cash boost, but it has also enabled Auric to allocate resources towards the development of its Munda gold deposit. The company’s strategic approach to exploration and extraction, as well as its future expansion plans, has garnered investor confidence and positioned Auric for further growth and success in the mining industry.
