Auric Mining (ASX:AWJ) has executed two binding agreements to acquire the Union Jack Project near Coolgardie in Western Australia, strengthening the company’s total mineral resource inventory.
The company purchased two mining leases, which together create the Union Jack Project.
Union Jack has an existing resource estimate of 3.12 million tonnes (Mt) @ 1.02 grams per tonne gold (Au) for 102,000 ounces.
Auric describes the resource as presenting a “compelling near-term, open-pit gold-mining opportunity”, expanding the company’s existing resource inventory by 51% to 7.5Mt @ 1.25g/t Au for 301,000 ounces.
The initial consideration of this acquisition comprises $6.6 million in cash and $3 million in shares payable on completion, across both agreements.
Auric will pay further milestone payments based on the growth of the JORC-compliant resource estimate, including $2 million on the definition of at least 125,000 ounces of gold; a further $2 million on definition of at least 150,000 ounces; and a final $3 million on definition of at least 200,000 ounces.
Located 5km east of Coolgardie, Union Jack comprises granted mining and prospecting leases and sits 15km from the Burbanks processing facility.
Auric says the project has the potential to “extend the Burbanks mill feed and production capacity”.
Managing Director Mark English says the project “dovetails perfectly” with Auric’s strategy to acquire near-term gold production assets within trucking distance of the Burbanks Mill.
“It’s so close we could almost wheelbarrow the gold,” English says.
“This is a material and compelling opportunity, and too good to pass up, adding substantially to the ounces we already control in the region.
“Conveniently, the project is located just 15km from Burbanks, which we intend to re-establish as a strategic gold-processing hub by early 2028.
“Union Jack is a potential near-term, open-pit mining project that could be advanced as an additional source of feed for Burbanks. It also represents a substantial step in de-risking our growth and adds to our strategy of becoming a sustainable producer.”
Meanwhile, Auric also paid a separate $100,000 to an unrelated third party as consideration for the acquisition of prospecting licence P15/6183.
This separate prospecting licence adjoins the Union Jack mining lease.
Earlier this month, Auric recorded a $28 million profit before tax for the half‑year ended 30 June 2026.
This profit is reported to be driven by ‘strong’ gold production from its Munda gold mine in Western Australia.
Auric Mining is an Australian gold producer focused on advancing the Munda gold deposit and redeveloping the Burbanks processing facility.
Write to Maddison Elliott at Mining.com.au
Main Image: Auric Mining
