Auric Mining Boosts Munda Gold Resource by 32% with Strong Starter Pit Results
Auric Mining has upgraded its Munda Gold Deposit resource by 32% to 192,000 ounces, supported by high-grade drilling and production that outperformed expectations. The deposit remains open for expansion, with a scoping study underway to integrate mining with the Burbanks Processing Plant.
- Munda resource increased 32% to 192,000 oz gold
- Starter Pit production 46% above budget validates model
- High-grade grade control drilling confirms resource upgrade
- Resource constrained by AUD$7,000/oz pit shell
- Scoping study underway for combined Munda-Burbanks development
Resource Upgrade Driven by Mining and Drilling Insights
Auric Mining Limited (ASX:AWJ) has announced a significant 32% increase in the estimated Mineral Resource at its Munda Gold Deposit, now pegged at 4.20 million tonnes at 1.43 grams per tonne for 192,000 ounces of gold. This upgrade comes despite the depletion of approximately 10,000 ounces from recent mining, underscoring the deposit's robust potential.
The re-estimation incorporates data from the Munda Starter Pit, where grade control drilling revealed spectacular high-grade intercepts, such as a 14-metre section grading 115.67 g/t gold. These findings support a less conservative treatment of high-grade samples in the updated resource model, which also reflects more selective mining practices. The resource remains open along strike and at depth, with further drilling planned to extend and infill the deposit.
The resource upgrade is underpinned by production results that exceeded expectations by 46%, with 8,886 ounces produced versus a budgeted 6,100 ounces, plus around 2,900 ounces stockpiled for future processing. This strong performance from the Starter Pit validates the resource model's reliability and suggests the current estimates remain conservative compared to actual production outcomes. The production success has also bolstered Auric's cash reserves, providing a financial foundation to advance the broader Munda and Burbanks operations.
Economic Parameters and Pit Shell Expansion
The updated Mineral Resource is constrained within an optimised pit shell generated at a gold price of AUD$7,000 per ounce, more than double the AUD$3,200 per ounce used for the 2024 estimates. This higher gold price assumption extends the resource pit shell to approximately 980 metres in strike length, 400 metres in width, and 200 metres in depth, about 50 metres deeper than previously considered. This adjustment reflects improved economic prospects for eventual extraction.
Mineral Resources at various cut-off grades are reported, with the 0.5 g/t cut-off showing the combined in situ resource plus stockpiles at an estimated 4.26 million tonnes at 1.42 g/t for 194,000 ounces. Metallurgical recoveries averaged 89.5% during Starter Pit processing campaigns, slightly above the 83% assumed in earlier studies. These parameters are feeding into a scoping study assessing the integrated development of the Munda open pit and the Burbanks Processing Plant, a key step toward Auric’s ambition to become a fully integrated mining house.
Geological and Drilling Foundation for Resource Confidence
The Munda deposit is hosted mainly within basaltic and ultramafic rocks, with gold mineralisation controlled by the intersection of a south-easterly dipping shear and layering subparallel to the basalt-ultramafic contact. The deposit’s mineralisation style is characterised by rare but very high-grade zones within a broad lower-grade halo, a pattern confirmed by the detailed 5 m by 5 m grade control drilling undertaken during mining.
The extensive drilling database, comprising 759 reverse circulation and 144 diamond holes totaling over 80,000 metres, includes significant infill drilling by Auric on a 10 m by 10 m pattern. The resource estimation utilised Multiple Indicator Kriging (MIK) with block support correction, a method well suited to the deposit’s style and open pit mining selectivity. The updated model benefits from a variance adjustment reflecting smaller selective mining units compared to the 2024 model, aligning with the finer scale grade control data.
The reconciliation between the model estimates and actual Starter Pit production shows tonnage and grade variances within acceptable ranges, further supporting the model’s robustness. Auric’s Managing Director, Mark English, highlighted the deposit’s growth potential and the company’s growing self-mining capability that has generated substantial cash reserves, enabling progress toward larger-scale operations.
Environmental Considerations and Next Steps
Environmental assessments indicate no significant impediments to mining, though the presence of a threatened flora species near the mining area will require careful management as operations expand. Auric is planning additional drilling to further define and grow the resource, with the ongoing scoping study expected to clarify the pathway for combined pit and processing plant development.
Recent operational success at Munda, including a Munda Starter Pit Outperforms and Auric’s strategic moves to accelerate growth with a Gareth Solly CEO Appointment, position the company well for the next phase of development. The resource upgrade adds weight to Auric’s ambition to scale production, complementing plans to leverage the Burbanks facility and expand in the Kalgoorlie region, as outlined in their Burbanks Facility and Kalgoorlie Expansion strategy.
Bottom Line?
The Munda resource upgrade validates Auric’s mining model and cash position, but the path from scoping study to sustained production growth will require navigating geological complexity and environmental stewardship.
Questions in the middle?
- How will further drilling impact the resource classification and potential underground mining options?
- What are the key risks in integrating Munda operations with the Burbanks Processing Plant?
- How will Auric manage environmental sensitivities around threatened flora during expansion?
