Auric Mining (ASX:AWJ) is planning to validate and infill-drill the Iron Maiden Gold Project near Norseman, Western Australia, after signing a binding term sheet to acquire the asset.
The work aims to upgrade the historical resource to JORC 2012 standards and assess its potential as future feed for Auric’s Burbanks processing facility.
Under the agreement, Auric will acquire 100% of Boomerang Mining Capital (BMC), which owns the project 5km south of Norseman and about 180km from Burbanks.
The initial consideration is $1 million in cash, alongside repayment of up to $3 million in loan funds advanced to BMC for its acquisition of the project from Accent Resources (ASX:ACS).
Auric will pay a further $1 million for each milestone where JORC 2012 mineral resources reach 150,000 ounces and 300,000 ounces.
The Iron Duke and Surprise deposits host historical resource estimates reported by Accent under the 2004 JORC Code, totalling 1.4 million tonnes (Mt) @ 1.5 grams per tonne gold (Au) for 68,500 ounces.
About 75% of the resource sits within 50m of surface, with both deposits open along strike and at depth. These estimates do not comply with the 2012 JORC Code and have not been independently validated.
Auric’s current 2012-compliant resources total 7.46Mt @ 1.25g/t Au for 301,000 ounces.
Previous drilling at Iron Duke returned 11m @ 22g/t Au from 39m, 19m @ 10.51g/t Au from 28m, and 10m @ 19.85g/t Au from 16m.
The tenements extend along the Mt Henry Shear, immediately north of Sinclair Gold’s (ASX:SGC) Mt Henry field. The nearby Lady Mary underground mine is believed to have produced more than 26,000 ounces at over 20g/t Au, with little modern exploration.
Managing Director Mark English says the project’s location between historical mines offers untested exploration upside and a potential source of feed for the company’s processing hub.
“Sitting between historical mines in Norseman and Mt Henry, the project presents immediate exploration upside and potential future feed for Burbanks,” English explains.
Auric has 30 days to complete due diligence, with either party able to terminate the term sheet if conditions remain unmet by 31 December 2026.
Work to convert the resources to JORC 2012 standards is expected to start in the March 2027 quarter and be completed within 12 months.
Auric Mining is an Australian gold producer advancing an integrated mining and processing strategy across Western Australia’s Goldfields region.
Write to JC Villarba at Mining.com.au
Main image: Auric Mining
