Auric Mines 8,886 Ounces at A$7,178/oz, 46% Above Budget
Auric Mining has delivered a standout performance at its Munda Starter Pit, producing 46% more gold than budgeted and generating a net cash position of A$43.5 million. The results suggest a larger, higher-grade gold resource than previously estimated.
- Produced 8,886 ounces of gold, 46% above budget
- Gold sold at an average price of A$7,178 per ounce
- Net cash and receivables total A$43.5 million (ex GST)
- Grade and recovery exceeded expectations at 2.46g/t and 89.5%
- Indications of a larger, higher-grade gold deposit at Munda
Strong Finish at Munda Starter Pit
Auric Mining Limited (ASX:AWJ) has announced a highly successful conclusion to its mining activities at the Munda Starter Pit, delivering 8,886 ounces of gold; 46% above the initial budgeted target of 6,100 ounces. This impressive output was achieved with an average gold grade of 2.46 grams per tonne, surpassing the predicted 1.80 grams per tonne, and a recovery rate of 89.5%, well above the forecasted 83.3%. These results highlight the operational efficiency and quality of the ore extracted during the campaign.
Financial Outcomes and Market Impact
The gold produced was sold at an average price of A$7,178 per ounce, contributing to a robust net cash position of A$43.5 million, excluding GST, after all mining, haulage, and processing costs were accounted for. This strong cash flow underscores Auric’s ability to generate near-term value for shareholders and positions the company well for future development phases.
Implications for Auric’s Growth Strategy
Managing Director Mark English described the results as “icing on the cake,” noting that the campaign’s success exceeded all expectations. The superior grade and recovery rates suggest that the Munda deposit is larger and richer than previously understood, reinforcing Auric’s ambition to evolve into a significant, integrated gold producer. The company’s partnership with Black Cat Syndicate Ltd., which processed the ore at its Lakewood Mill, has proven effective in maximising returns from the mining campaign.
Looking Ahead
While the Munda Starter Pit campaign has wrapped up on a high note, the Munda Main Pit remains a major opportunity for Auric. The encouraging results from the starter pit provide a strong foundation for further exploration and development, potentially unlocking additional value. Investors and analysts will be watching closely for upcoming updates on resource expansion and production plans.
Bottom Line?
Auric’s stellar Munda results set the stage for a promising next chapter in gold production and growth.
Questions in the middle?
- How extensive is the larger, higher-grade gold resource indicated at Munda?
- What are Auric’s plans and timelines for developing the Munda Main Pit?
- How will Auric manage capital expenditure and operational scaling following this strong cash flow?
