Auric converts $1.2M punt into $16.5M from overlooked WA gold play
Brought to you by Bulls and Bears
Doug Bright
Auric Mining has put a golden bow on its first mining venture, banking a final $2.2 million cash distribution from the company’s Jeffreys Find gold mine near Norseman in Western Australia.
The latest payment, received yesterday, completes Auric’s 50:50 joint venture with Kalgoorlie-based BML Ventures, giving the company a whopping $16.5 million return from an initial $1.2 million bet.
All in all, not a bad way to sign your first mine.
Jeffreys Find is now officially back on track after its latest paid milling campaign processed 60,000 tonnes at the Three Mile Hill Mill in Coolgardie.
‘Jeffreys Find has been a complete game changer for Auric, accelerating our transition from explorer to producer.’
Auric Mining managing director Mark English
Since mining began in May 2023, the open pit has produced 633,302 tonnes with a head grade of 1.58 grams per tonne (g/t), with metallurgical recoveries averaging 92 percent.
In total, 29,534 ounces of gold were produced and sold to the Perth Mint at an average realized price of $3,763 per ounce; Total sales excluding GST were approximately $82 million.
Under the agreement, BML Ventures financed and managed the mining, transportation and processing activities, with excess cash split equally after deducting direct costs. Auric said that after the final check was completed, all issues related to the joint venture were completed.
Even better, the company’s first foray into mining at the Jeffreys Find leaves Auric with plenty of firepower for the next chapter.
Auric Mining managing director Mark English said: “Jeffreys Find has been a complete game changer for Auric, accelerating our transition from explorer to producer. Receiving this latest $2.2 million distribution represents a strong closing result for the company from our first mining venture.”
As of yesterday, the company’s cash, bullion and listed investments were $43 million. Proceeds from Auric’s Jeffreys Find are currently helping develop the Munda gold mine, 5km from Widgiemooltha in WA’s Eastern Goldfields.
The signing at Jeffreys Find coincides precisely with the completion of Auric’s 125,000 tonne Munda starter pit, mined at an average grade of 1.8 g/t gold. The operation took place in rapid succession and produced 8475 ounces of gold; This represents an increase of 40 percent above previous estimates.
The small-scale debut of the much larger Munda Main Pit, which hosts a resource of 189,000 ounces at 0.2 g/t fraction, has helped increase Auric’s cash and bullion pile.
With the rapid rise in bullion prices, Munda ounces gained almost twice the value of the price obtained at Jeffreys Find, and gold prices also began to rise.
Armed with a bulging war chest, Auric now sets his sights on developing Munda’s main pit. If the company can replicate the successful execution seen at the Jeffreys Find and its initial pit, the next chapter could be even more lucrative for WA’s gold-hopeful investors.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
