Auric Mining outlines a bold growth plan centered on Kalgoorlie, targeting 25,000–30,000 ounces of gold production from 2028 with a new processing facility and multiple project acquisitions.
- Plans 25,000–30,000 ounces production from January 2028
- Acquisition and upgrade of Burbanks processing facility underway
- Munda Gold Mine resource expansion and Stage 2 development progressing
- Lindsay’s Project acquisition to add near-term open pit mining
- Strong financials with $67 million market cap and $49 million cash plus real estate
Accelerating Gold Production with Burbanks Mill Acquisition
Auric Mining (ASX:AWJ) is positioning itself as a fully integrated gold mining house in Western Australia’s prolific Kalgoorlie region, with a clear production target of 25,000 to 30,000 ounces of gold commencing January 2028. Central to this ambition is the acquisition of the Burbanks Gold Processing Facility near Coolgardie, purchased for $4.4 million, which provides a significant infrastructure advantage including power, water, and granted mining leases.
The company has already appointed Scott Bailey as Processing Manager and initiated technical studies, aiming to deliver a scoping study for a 500,000 tonnes per annum plant by the end of May 2026. Auric’s strategy to "own the infrastructure, own the cash flow" reflects a push to accelerate development timelines and reduce capital outlay by leveraging existing assets.
Munda Gold Mine: From Starter Pit to Full-Scale Operation
Munda remains Auric’s flagship asset, with a current mineral resource estimate of 145,000 ounces. The recent completion of the Starter Pit delivered 8,886 ounces of gold, exceeding budget by 46%, with a reconciled head grade of 2.46g/t and 89.5% mill recovery. This robust performance has bolstered confidence in the deposit’s scale and grade, underpinned by numerous high-grade drill intersections such as 46 metres at 8.4g/t and 1 metre at 321g/t gold.
Looking ahead, Auric plans extensive resource drilling, environmental and geotechnical studies, and mine development permit applications throughout 2026. The company intends to transition to full pit mining by 2027, feeding ore into the Burbanks facility once operational. This staged approach aligns with Auric’s recent financial success, including a near doubling of net profit to $5.2 million in 2025 and strong cash generation from gold sales, as detailed in their near doubling of net profit announcement.
Expanding the Footprint: Lindsay’s and Other Projects
The acquisition of Lindsay’s Project, subject to settlement and tenure resolution, promises to add near-term open pit mining potential with seven tenements including the partially mined Parrot Feathers deposit. The $4 million purchase includes a mix of cash, shares, and royalties, with mining activities targeted to commence in late 2027.
Additional exploration targets include the Spargoville Project, where prospects like Fugitive and Anomaly 37 show promising drill results up to 12.1g/t gold, and the Loded Dog Tenements near Higginsville, featuring historic gold deposits and recent assays exceeding 10g/t. The Chalice West tenements, adjacent to the former Chalice Gold Mine which produced over 670,000 ounces, also offer significant exploration upside with planned drilling programs in 2026.
Financial Strength and Experienced Leadership
Auric’s market capitalization stands at $67 million with $49 million in cash and real estate assets, supported by zero hedging and a modest $3 million undrawn debt facility. The company has steadily grown revenue from $4.8 million in 2023 to $20.6 million in 2025, alongside net profit after tax rising from $1.3 million to $5.2 million over the same period.
The board combines deep mining expertise and financial market experience. Managing Director Mark English, with a 45-year resources career, leads strategy and corporate development, while Technical Director John Utley brings 40 years of exploration and development knowledge, including international experience. Non-Executive Chairman Steven Morris adds financial market acumen and governance experience, having served on other ASX-listed company boards.
Looking Toward 2028 and Beyond
Auric’s strategic priorities for 2026 to 2028 focus on finalising the Burbanks facility decision by May 2026, expanding the board and management team, completing the Lindsay’s acquisition, and commencing full-scale mining at Munda and Lindsay’s by late 2027. The company aims to grow its combined resource base to 500,000 ounces by the end of 2028 through exploration and acquisitions.
The integrated vision of controlling mining and processing operations aims to elevate Auric from a junior producer to a mid-tier gold mining house. However, as with all forward-looking plans, execution risks remain, particularly in permitting, capital expenditure, and resource expansion. The company’s recent operational outperformance and financial growth provide a solid platform, but the transition to full production and the ramp-up of the Burbanks facility will be critical milestones to watch.
Bottom Line?
Auric Mining’s move to integrate processing and expand its Kalgoorlie footprint sets a clear path to production growth, but execution on facility build and resource expansion will test its ambitions.
Questions in the middle?
- Will the Burbanks processing facility be operational on schedule to support 2028 production targets?
- Can Auric successfully resolve tenure and settlement issues to fully integrate Lindsay’s Project?
- How will ongoing exploration results at Spargoville and Loded Dog influence resource growth plans?