Auric knee-deep in multiple toll milling campaigns with payday coming

[Pelican Press 0]

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Auric knee-deep in multiple toll milling campaigns with payday coming

Auric Mining and its ****** venture (JV) partner BML Ventures have kicked off the final and biggest toll milling campaign at the Greenfields Mill near Coolgardie, processing 142,000 tonnes of remaining ore from the company’s Jeffreys Find gold project near Norseman, in WA.

The seven-week milling operation, which began yesterday is expected to be complete in January with weekly gold pours leading to immediate sales at the Perth Mint.

Auric and its JV partner have done most of the mining at site with more than 53,000t of ore already stockpiled at the mill ready to be processed. A further 85,000t is sitting on the run of mine pad at Jeffreys Find ready for transport. The balance of 4000t is still to be mined.

A further 120,000t to be excavated at the mine will be processed under a separate milling contract at the Three Mile Hill plant, also near Coolgardie.

By the time the JV has finished in early 2025 it will have mined and processed a remarkable 420,000t of ore from Jeffreys Find, a formerly unloved ******** passed over as too low grade and too difficult to develop by countless local miners.

The next two months will be critical for the JV as it looks to process about 62 per cent of the total ore from the mine leaving the richest grades until last. So far, 158,000 milled tonnes have produced 7500 ounces of gold leaving 262,000 milled tonnes to process, which the company believes will then take total production to more than 20,000 ounces.

Auris has built a robust partnership model with BML and the two local mills that appears to be delivering cash to all four parties. BML Ventures is taking mining risk and putting up the working capital to go mining and that money is recouped from gold sales with the remainder split between BML and Auric.

So far the JV has only paid out two interim dividends of $2 million each to the partners during the year, leaving a hefty pile of surplus cash still sitting in the bank pending a final reconciliation.

With the final milling campaigns wrapping up, that pile is about to grow even more. Auric is therefore looking forward to a solid payday in December and another nice cheque early next year when all the costs are tallied and squared away.

Auric Mining managing director Mark English said: “We’ve saved the best for last. All the ore going through the mill is high grade ore. We expect this campaign to produce the highest number of ounces for the year. With gold to be sold shortly it won’t be long before the first cash will be paid to Auric. Cash disbursements will continue for us into the New Year. With a very solid gold price we couldn’t possibly be selling gold at a better time.”

Even though the Jeffrey’s Find toll treating campaign has been a multi-million-dollar success for Auric, the real prize will start to present itself when the company turns its full attention to its 100 per cent-owned Munda gold mine near Widgiemooltha in WA’s Goldfields region.

The mine was highlighted by the company in a scoping study last year that showed plans to produce between 112,000 and 129,000 ounces of gold from toll treating during a mine life of three to five years in conjunction with third-party toll treating at a local mill.

Sitting on a total resource of more than 200,000 ounces grading above 2 grams per tonne as confirmed by a recent grade-control drilling campaign, Munda could produce a wall of cash, forecasting a free surplus of $76.9 million using a gold price of US$2600 per ounce.

As gold prices remain close to all-time highs, currently trading at US$2637 (A$4052) per ounce, times have rarely been so buoyant for miners of the yellow metal.

With Auric due to collect a big payout from completing Jeffreys Find in the next two months and Munda ready to ***** up immediately thereafter, the company is looking dangerous as it heads into the new year with some cash in the bank and plenty of gold still to mine at Munda.

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