Auric estimates that for every $100 added to the gold price, the joint venture’s total revenue will jump a further $300,000, with much of that dropping to the bottom line after processing costs.
Now that its Jeffrey’s Find project is mostly in the rear-view mirror, Auric is using its cash windfall to move onto a new development at the company’s Munda gold project, near Widgiemooltha in Western Australia.
‘Our total assets increased by 62% to $21.6 million in 2024…’
Auric Mining managing director Mark English
Extensive drilling and groundwork are already underway at site with work expected to start shortly to mine a 125,000-tonne starter pit grading 1.8 grams per tonne (g/t) for 6100 ounces of the yellow metal, which should generate $5.3M in quick cash.
By taking a strategic approach of a starter pit to unlock Munda’s full potential the company expects to gain a deeper understanding of the geology at site and pave the way for a more efficient mining strategy to develop a bigger 140,000-ounce orebody.
By removing the costly overburden material during a high gold price environment, Auric hopes to lower its overall future mining costs, thereby putting the full-scale operation – due to start in 2026 – on a firmer footing, even in a fluctuating market.
Unlike the past two years where it has operated in partnership with BML, Auric now has the funding to go it alone and take full control of Munda, which means the company will have full exposure to the upside from operations going forward.
Auric has a “strike while the iron is hot” attitude to its development plans during these heady days of booming gold prices to push the production pipeline well past Jeffrey’s Find and Munda.
The company has just wrapped up due diligence on its acquisition of the Burbanks gold plant near Coolgardie – a 180,000 tonne-per-annum operation – having secured a deal for $4.4M.
Hot on the heels of that move, Auric also snapped up the Lindsay gold project in WA’s Eastern Goldfields for $4M in a mix of cash and shares. The acquisition includes the mine-ready Parrot Feathers deposit, which hosts 18,000 mine-ready ounces of gold.
Auric is not slowing down. The company sees exploration potential in its Loded Dog tenements, which offers a promising package of eight licences near Westgold Resources’ massive 2.8M-ounce Higginsville gold operation.
In a major win during the year, Auric signed an all-in-one landmark native title agreement with the Ngadju People covering 102,000 square kilometres and almost all the company’s exploration grounds. The deal streamlines future project approvals and will deliver tangible economic benefits for the Ngadju community.
With the company now free of its joint venture obligations and heavily leveraged by the booming gold price from its latest acquisitions – gold is at an all-time high of $4960 per ounce – Auric appears to be setting itself up for an exciting 2025 as one of WA’s next mid-tier gold success stories.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
