Auric Mining's Stellar Year: Unlocking $29.28 Million in Gold Sales

Strategic Insights -

Auric Mining has made a significant dent in the gold mining industry with its first $4.7 million chapter in the book, thanks to a gold price that would have been unthinkable a year ago. The company's Jeffreys Find leases near Norseman in Western Australia have churned out more than 9700 ounces of gold during two mining campaigns with joint venture (JV) partner BML Ventures. The project has produced a substantial $29.28 million in gold sales for the first stage of the two-year project, with Auric's share being an impressive $4.7 million. The company's success has caught the market's attention, with its share price doubling last year from about 6¢ a share to 12¢.

Key Takeaways:

  • Auric Mining's Jeffreys Find project has produced over 9700 ounces of gold during two mining campaigns, generating $29.28 million in gold sales for the first stage of the two-year project.
  • Auric's share of the project is $4.7 million, with all costs incurred and paid by joint venture partner BML Ventures.
  • The company sold a record 1264-ounce parcel of gold for $3131 per ounce to the Perth Mint, generating a gross revenue of nearly $4 million.
  • Auric's average price for gold sales in the first year was $3006 per ounce, well above the expected $2600 an ounce.
  • The company plans to expand its operations at the Jeffreys Find deposit, with a projected conclusion of stage two by late this year or early next year.
  • Auric has a resource of 1.21 million tonnes of ore grading 1.22g/t gold for a total of 47,200 ounces at the Jeffreys Find deposit.
  • BML Ventures, an experienced mining contractor, is paying all costs related to mining the gold resource.
  • Auric will retain an equal share of the net cash surplus after payment of all mining and processing costs.
  • The company plans to invest the revenue from the Jeffreys Find project into its ongoing development, particularly at its 100% owned Munda gold deposit near Widgiemooltha.
  • Auric's Munda deposit has a resource of about 198,700 ounces of gold at a grade of 1.38g/t, with a scoping study outlining a cashflow surplus of $76.9 million under a base-case scenario.

Statistics:

  • 9700+ ounces of gold produced during two mining campaigns at the Jeffreys Find project.
  • $29.28 million in gold sales for the first stage of the two-year project.
  • $4.7 million in Auric's share of the project.
  • 1264-ounce parcel of gold sold for $3131 per ounce to the Perth Mint, generating a gross revenue of nearly $4 million.
  • Average price of $3006 per ounce for gold sales in the first year.
  • 36,180 tonnes of ore processed in the first campaign at a head grade of 1.58g/t.
  • 139,685 tonnes of ore processed in the second campaign at a head grade of 1.93g/t.
  • 92.58% gold recovery rate in the second campaign.
  • 1.21 million tonnes of ore grading 1.22g/t gold for a total of 47,200 ounces at the Jeffreys Find deposit.
  • $2600 per ounce assumed gold price for the scoping study on the Munda gold deposit.
  • $76.9 million cashflow surplus outlined in the scoping study on the Munda gold deposit.

Sources:

  • Auric Mining's 2023 annual report
  • BML Ventures' website
  • Perth Mint's website
  • ASX listing for Auric Mining