The $650,000 infrastructure cost of haul roads, site offices, and environmental management systems have also been included in the $4.86m million initial cash outlay.
With $4.3 million in the bank as of the end of September and a big payday due shortly from completing mining operations at the company’s Jeffreys Find mine near Norseman, Auric should be well placed to cover the initial working capital requirements without having to rely on any additional funding.
Auric Mining managing director Mark English said: “This work is another key part of the process in mining Munda. We have a lot of confidence in our approach and the key inputs that have been used. The starter pit is designed to provide a better understanding of the deposit before aiming to go into full production in 2026”
According to the company, its sensitivity analysis highlighted the project’s exposure to gold prices as the primary driver of the mines’ profitability, followed by processing and mining costs. It also emphasised its resilience, being able to still turn a profit even if the gold price declined 25 per cent from current levels.
Given the proposed starter pit overlaps an existing pit on a current mining lease, the company believes pending approvals for vegetation clearing and additional permits will proceed smoothly, allowing it to proceed with mining in the new year.
Auric is wasting no time with its plans to move into full time mining operations at Munda now that Jeffreys Find is winding up and it has one eye on the larger production scenario at Munda post the starter pit.
A recently released scoping study on the broader Munda deposit outlined a cashflow surplus of A$76.9 million under a base-case scenario using an assumed gold price of US$2600 (A$4006) per ounce.
In the current high gold price environment and with a mineral resource of 4.3 million tonnes at 2 grams per tonne gold for 273,600 ounces, it’s perhaps not surprising that Auric sees Munda as a prize definitely worth chasing.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
