Auric Mining (ASX:AWJ) has posted ‘positive’ results from a recently completed Scoping Study within the Widgiemooltha Gold Project in Western Australia.
The company says the study highlights the value and viability of the Munda gold deposit.
Auric commissioned Kalgoorlie-based consulting firm Minecomp to conduct the Scoping Study, which evaluated the potential for open-pit mining at Munda and ore processing via toll treatment at an existing plant.
The study forecasts a total project mine life of 3 years, with processing time potentially longer dependent on mill availability.
Auric says this is estimated to give an undiscounted accumulated cash surplus after payment of all working capital costs of $76.9 million.
The processing plant considered for this study is located near Coolgardie, 82km from Munda. Auric says it will soon be toll milling ore from its Jeffreys Find gold deposit under the terms of a toll milling agreement.
A range of outcomes was defined based on the gold prices.
At gold prices of between $2,400 and $2,800 per ounce, the production target for the project ranges from 1.67 million tonnes (Mt) @ 2.2g/t Au producing 112,000 ounces of gold to 2.18Mt @ 1.9g/t Au producing 129,100 ounces of gold.
Commenting on the Scoping Study results, Auric Mining Managing Director Mark English says: “We now have a roadmap to plan gold mining at Munda. There is still more to be done, but this Scoping Study provides us with a high level of confidence to proceed to mining.
“this Scoping Study provides us with a high level of confidence to proceed to mining”
The independent Scoping Study highlights significant accumulated cashflow for the Munda Project. The adopted base case scenario at $2,600 per ounce details mining approximately 1,716 million tonnes to generate an accumulated undiscounted cashflow surplus of $76.9 million, a terrific outcome for Auric.”
Auric Mining is a gold explorer and developer based in Western Australia. The company had $1.318 million in cash and cash equivalents as of 31 March 2023, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Auric Mining Ltd
