Auric’s golden triumph at WA mine exceeds budget

Auric Mining’s Munda Starter Pit Exceeds Expectations

Auric Mining has delivered a remarkable performance at its Munda starter pit, surpassing initial expectations in several key areas. The final gold tally reached 8,886 ounces, which is 46 per cent above the original budget of 6,100 ounces. This result came with a series of positive surprises throughout the process, highlighting the potential of the Munda deposit.

The final piece of the puzzle was the gold in circuit (GIC) calculation from the fourth and final outturn of the second campaign, which added an extra 411 ounces. Campaign Two, which ran from late January to mid-February, processed 68,154 tonnes of ore at Black Cat Syndicate’s Lakewood Mill near Kalgoorlie. The campaign recovered 6,168 ounces at an impressive head grade of 3.18 grams per tonne (g/t) gold.

Improved Grades and Geological Potential

The increase in grade can be attributed to the deeper material processed during Campaign Two. This part of the starter pit contained higher gold grades, which is a significant indicator in gold mining. Typically, grades improve with depth, and this suggests that the deposit may be getting better rather than pinching out below the pit floor.

Auric Mining managing director Mark English described the results as “truly stellar.” He emphasized that the project has delivered more than expected, both in terms of ore quality and extraction efficiency.

Strong Performance on Multiple Metrics

Combined, both campaigns achieved a reconciled average head grade of 2.46g/t, which is 37 per cent higher than the predicted 1.80g/t. Additionally, mill recovery of 89.5 per cent exceeded the forecasted 83.3 per cent. This double win significantly boosted the final ounce count, showcasing the company’s ability to not only find better ore but also extract more gold from it.

There is also an additional 18,000 tonnes of starter pit ore remaining on the ROM pad at Munda, estimated to contain another 935 ounces once processed. Adding this to the 8,886 ounces already recovered, the starter pit could deliver 61 per cent more ounces than the original reserve estimate. This reconciliation result is a strong indicator of the project’s potential.

Historical Context and Exploration

The Munda gold mine is located near Widgiemooltha and Kambalda in Western Australia. It is classified as Kambalda-style, where gold and nickel occur together but in adjacent, separate zones. High-grade gold is hosted in mafic and ultramafic rocks, often appearing with subtle albite and quartz alteration.

The Munda story dates back to the 1960s when Anaconda and CRA first identified the deposit’s potential. Western Mining Corporation conducted most of the serious exploration work, followed by Resolute, which ran a small pit in the 1990s before retreating due to falling gold prices.

The site remained largely dormant until Auric entered the scene four years ago. The company quickly confirmed a JORC inferred resource and had its first gold pouring by late last year. This swift execution has been well-received by investors, and the starter pit results suggest that the best of the Munda story is still ahead.

Strategic Advantages and Financial Strength

Mark English noted that the 46% over-performance in production puts a “golden bow” on the Munda Starter Pit results. Notably, Auric achieved all of this without owning a mill. The toll-treating arrangement with Black Cat proved to be a smart and cost-effective way to unlock value from the Munda ore without the capital burden of building or buying processing infrastructure.

The cash generated from both campaigns has left Auric with $43 million in cash, bullion, and listed investments, excluding a GST refund. This war chest positions the company strongly for future developments.

Future Plans and Expansion

The data collected from the Starter Pit on grade distribution, mining behavior, and processing characteristics has provided Auric’s technical team with a valuable real-world dataset. This will inform planning for the Munda Main Pit. The company has indicated that the deposit’s resource will be remodelled to account for the localized high-grade zones that were previously difficult to capture in estimates.

With better data and a bigger pit on the horizon, Auric is well-positioned to capitalize on the Munda deposit’s potential. The starter pit story is a clean example of conservative budgeting, consistent outperformance, and real cash generation, setting the stage for even greater achievements.