EXPLORATION & DEVELOPMENT

Auric sees tolling profit potential

EASTERN Goldfields minnow Auric Mining is hopeful to getting its Jeffreys Find gold deposit into production as a means of generating some quick cash before the end of 2023.

 Auric remains hopeful of rapid mine development

Auric remains hopeful of rapid mine development

The junior's scoping study for its 44,600 ounce at 1.3 gram per tonne Jeffreys Find deposit, located 45km from Norseman, Western Australia, suggests a combination of open pit mining and toll treating should generate a cash surplus assuming a A$2600/oz gold price.
 
Managing director Mark English said the project has attractive margins if it could strike a deal to use one of two third-party mills it had identified within 230km and could generate a cash surplus of $10-17 million.
 
A three-month starter pit alone would be expected to generate $4-8 million in profit. 
 
With studies, working capital requirements, and on-ground costs any development at Jeffreys Find is likely to require just $7 million to get into production, with actual start-up costs around $1 million to establish the mine.
 
The biggest single cost being around $400,000 to develop a 14.4km-long haul road from the mine to the Eyre Highway.
 
Depending on the mill, over the 12-month period it could produce 24,700oz by using the facility that is just 110km away, or 18,900oz by using the plant that is further away.
 
Head grade would be 1.5-1.6 grams per tonne.
 
Metallurgical work completed earlier this year indicated recoveries of 90-94% for fresh and oxidised ore.
 
It had had early discussions with mill owners.
 
A mining lease already covers the proposed pit, and a licence had been granted for the haul road, so the project is ready to go pending a feasibility study.
 
The cash injection from Jeffrey's Find would help test the nearby Neon prospect, study development options of its 198,700oz Munda resource, and pursue exploration at its recently secured Chalice West licence, and its other licences at Widgiemooltha and Spargoville. 
 
Auric, which started the quarter with $3 million cash remaining from its $7 million IPO in February 2021, estimates it has enough cash to get it into early 2023, when a capital raising may be required.
 
Auric shares closed yesterday at 6.5c, valuing it at $6 million. 
 
The stock has traded at 6.1-28c since listing.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.