Hot on the heels of a profitable 2023, Auric Mining (ASX: AWJ) has generated nearly $4.46 million in gross revenue from its first mining campaign of the year at its Jeffreys Find project in Western Australia’s Goldfields region after selling 1256 ounces to the Perth Mint.
The company today confirmed it had received an average gold price of $3549.48 per ounce – $543 above what it collected last year at an average of $3006 per ounce – setting the total gross revenue from its latest campaign at a tidy $4,457,343.
As part of Auric’s latest mining program, more than 30,000 dry metric tonnes were processed for its joint venture (JV) partner BML Ventures at a reconciled head grade of 1.44 grams per tonne at the Greenfields Mill in Coolgardie. Management says that while the first production of the year was a little lower than anticipated due to delays caused by rain in the region, the next mill allocation is set to increase to 145,000 tonnes from a new campaign set to kick off in July.
The increase in price is fantastic. We are going to have an exceptional year at Jeffreys Find.
Auric Mining managing director Mark English
The company expects BML to double production and mine more than 300,000 tonnes throughout 2024 as it continues to mine “24/7” at the site and predicts the head grade to improve as the year progresses. The partnership recorded a recovery rate of more than 90 per cent.
Last year, gold was sold at an average of $3006 per ounce. This year the first parcel sold at $3549 per ounce – $543 an ounce better. The increase in price is fantastic. We are going to have an exceptional year at Jeffreys Find.
Auric Mining managing director Mark English
The partnership produced more than 9740 ounces during two mining campaigns last year, returning a total gold revenue of $29.28 million. Auric paid $1 million as a working capital contribution to BML, with the JV partner incurring and paying all additional mining costs and expenses.
After completing the final phase of mining, the two partners will again subtract all costs before splitting the surplus cash proceeds on the same 50:50 basis that delivered them both a significant 2023 windfall.
In a swift turnaround, toll milling at Greenfields kicked off on April 17 and was completed by the end of the month.
Auric plans to put its surplus cash to work by continuing with the development of its nearby Munda gold deposit, alongside broader exploration around Norseman. A Munda scoping study outlined a cashflow surplus of $76.9 million under a base-case scenario using an assumed gold price of $2600 per ounce.
Today’s Australian gold price is sitting at more than $3550 an ounce.
Earlier this year, the company recorded multiple high-grade intercepts from grade-control drilling at Munda, including a 1m hit going 184.6 grams per tonne gold. It now has plans in train to have a starter pit at Munda producing gold as early as this year, before expanding the mine in 2025 and beyond.
The site sits just 3km south-west of Mincor Resources’ Widgiemooltha gold project, which has a mineral resource of 4.3 million tonnes at 2g/t tonne gold for 273,600 ounces.
However, Auric’s immediate focus remains on the second and final year of operation at Jeffreys Find. With the next milling program set to kick off in the new financial year, English appears to be on the money with his prediction of an “exceptional year” at the Goldfields mine.
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