Auric Mining has wrapped up its inaugural Munda starter pit operation in Western Australia with resounding success, surpassing production targets and securing a premium price for its gold sales. The company's managing director, Mark English, is celebrating as the venture delivered a net cash influx of $43.5 million, excluding GST, bolstering its financial standing.
Exceeding Expectations in Gold Production
The Munda starter pit, located near Widgiemooltha, produced a final tally of 8,886 ounces of gold, which is a remarkable 46 per cent above the budgeted 6,100 ounces. This overachievement was driven by a reconciled average head grade of 2.46 grams per tonne, significantly higher than the predicted 1.80 grams per tonne. Additionally, the overall recovery rate reached 89.5 per cent, outperforming the forecast of 83.3 per cent.
Financial Windfall and Strategic Timing
Auric Mining completed the sale of all bullion from its second processing campaign through Black Cat Syndicate's Lakewood mill, achieving an average price of A$7,178 per ounce. The company's net cash at bank, combined with balances due from Black Cat, totals $43.5 million as of the latest update. In a stroke of strategic timing, Auric moved its remaining bullion just four days before a sharp decline in gold prices, which saw values drop by over $1,000 per ounce before partially recovering.
Implications for Future Resource Modelling
The strong performance in grade and recovery across both campaigns supports Auric's belief that the Munda deposit hosts a substantial gold resource, likely larger and higher-grade than initially modelled. This data has prompted the company to initiate detailed scoping and planning work for a main open pit at Munda, setting the stage for potential resource upgrades and expanded mining operations.
Additional Financial Gains and Operational Details
Beyond the Munda success, Auric recently concluded its Jeffreys Find joint venture with a final distribution of $2.2 million, bringing its total cash share to nearly $16.5 million. The company also noted that an estimated 18,000 tonnes of ore remain on the run-of-mine pad for potential future treatment, adding to its resource base.
Mark English expressed enthusiasm about the results, stating, "What a superb finish it has been for our maiden mining of Munda. This includes sale of all the bullion produced from our second campaign for a fantastic average price of A$7,178 per ounce." With these achievements, Auric Mining demonstrates robust operational efficiency and market acumen, positioning itself for continued growth in the gold mining sector.
