Western Australia-based gold explorer and developer Auric Mining (ASX:AWJ) has produced and sold 1,721 ounces of gold for $5.057 million from its first toll milling campaign.
The $5.36 million market capitalisation says it sold the gold from its Jefferys Find mine at an average price of $2,939 per ounce.
Auric Mining reports as part of the first toll milling campaign, up to 36,180 dry tonnes were processed at a reconciled head grade of 1.58 grams per tonne (g/t) gold for 1,721 ounces of gold at a calculated recovery of 93.04%.
This head grade reconciles ‘well’ with the estimated mine grade for the ore parcel, according to Auric.
Shares in Auric Mining have spiked 31.71% to $0.054 as of 12:45pm AEST on Friday 25 August.
The company notes it has now completed the first stage of mining at Jeffreys Find. According to Auric, about 145,000 tonnes of ore remains to be processed, with haulage of the ore from the project to the Greenfields Mill ongoing.
At this rate, Auric Mining announces the next toll milling campaign is scheduled to begin in early September 2023 and will see all remaining ore processed. This is expected to take 6 to 7 weeks.
Final mining is expected to be completed by the end of 2024/early 2025.
Auric says it budgeted for a gold price of $2,600 per ounce for the project, but ‘substantially higher’ gold prices of around $2,950 per ounce have placed the company and its joint venture partner, BML Ventures, in a more favourable position.
Commenting on the gold sales, Auric Mining Managing Director Mark English says: “This is a tremendous result for Auric, we couldn’t be happier.
Nevertheless, it’s just the start. The second parcel of approximately 145,000 tonnes will be processed by the Greenfields Mill commencing early September 2023 in one batch, which is also terrific news. We now have confirmation of grade and plant recovery. With a gold price at around AUD$2,950/ounce, Auric will soon receive a substantial cash flow injection.
This first phase of mining is playing out well. Jeffreys Find will be very profitable for Auric and BML Ventures Pty Ltd.”
“This is a tremendous result for Auric, we couldn’t be happier. Nevertheless, it’s just the start.“
Auric Mining is an explorer and developer focused on establishing a gold mining enterprise of ‘significant’ scale.
The company’s main assets are the Widgiemooltha Gold Project, which comprises the wholly owned Munda Gold Project, along with the Jeffreys Find Gold Project in Western Australia.
Write to Adam Drought at Mining.com.au
Images: Auric Mining
