Auric Mining (ASX:AWJ) has completed settlement on the Union Jack Project for $6.5 million cash and $3 million in shares, subject to shareholder approval.
The acquisition adds a granted mining lease containing an inferred mineral resource estimate of 3.12 million tonnes (Mt) at 1.02 grams per tonne gold (Au) for 102,000 ounces.
Spanning 89 hectares, Union Jack sits east of Coolgardie, Western Australia, 15km from the company’s Burbanks processing facility. The project directly abuts the Great Eastern Highway and offers near-term open pit mining potential to feed the Burbanks processing plant.
The purchase increases Auric’s total mineral resource inventory by 51% to 7.5Mt @ 1.25g/t Au for 301,000 ounces across its combined projects, including Munda and Jeffreys Find.
Previous drilling at Union Jack returned ‘high-grade’ intersections including 17m @ 4.57g/t Au from 24m, 15m @ 4.22g/t Au from 62m, and 5m @ 9.64g/t Au from 10m.
Managing Director Mark English says the granted mining lease fits the company’s strategy of acquiring near-term gold production assets “within trucking distance of the Burbanks Mill”.
“There was simply no way we could pass on such a strategic purchase including adding to the ounces we already control in the region,” English says.
“With its potential near-term, open pit mining prospects, the drill rigs are booked for next month, particularly appreciating Union Jack could be advanced as an additional source of feed for our Burbanks mill marked for reopening [in] early 2028.”
The company plans to commence a major drilling program in November aimed at infilling and expanding the mineral resource ahead of mining studies and production scheduling.
At a higher 0.65g/t Au cut-off within an optimised pit shell, Union Jack contains 2.16Mt @ 1.22g/t Au for 85,000 ounces. Approximately 16% of the mineralisation is weathered material with 84% fresh rock.
Auric Mining is an Australian gold explorer and developer operating in WA’s Goldfields.
Write to Paula Fabe at Mining.com.au
Main image: Auric Mining
