Auric Mining's integrated Scoping Study outlines a $138 million capital plan to restart mining at Munda and upgrade Burbanks processing plant, targeting first gold in early 2028 with robust economics and scalable infrastructure.
- 600,000tpa Burbanks plant upgrade with $94.3M EPCM cost
- Munda open pit mining 2.77Mt at 1.75g/t Au for 155,000 ounces
- Peak funding requirement $145M with 2.3-year payback
- All-in sustaining cost $2,843/oz and EBITDA $437M at A$5,750/oz gold
- Processing facility designed for future expansion to 1.2Mtpa
Auric Mining’s Integrated Plan Targets Standalone Gold Production
Auric Mining Limited (ASX:AWJ) has unveiled a comprehensive integrated Scoping Study for its Burbanks and Munda projects in Western Australia’s Goldfields, laying out a clear strategy to become a standalone gold producer. Central to the plan is the re-establishment and upgrade of the Burbanks processing facility to a nominal 600,000 tonnes per annum (tpa) capacity, paired with the restart of open pit mining at the Munda gold deposit.
The study estimates a capital expenditure of A$138 million to bring Burbanks back online and develop the Munda open pit, with a peak funding requirement of A$145 million. Auric aims to deliver first gold by early 2028, subject to securing financing and regulatory approvals.
Robust Economics Backed by Starter Pit Performance
Mining at Munda is planned over 32 months, targeting 2.77 million tonnes at a grade of 1.75 grams per tonne gold (g/t Au) for approximately 155,000 ounces. The processing plant at Burbanks, currently a non-operational 180,000tpa CIL facility, will be upgraded to handle this throughput, with design scalability to 1.2Mtpa.
The project’s financial metrics are compelling: at a base case gold price of A$5,750/oz, Auric forecasts A$812 million in revenue, an EBITDA of A$437 million, and an all-in sustaining cost (AISC) of A$2,843 per ounce. Payback is expected within 2.3 years of production start. These figures incorporate a metallurgical recovery of 89.5%, validated by processing 126,000 tonnes from the recently completed Munda Starter Pit, which outperformed expectations and bolstered confidence in the project’s technical assumptions.
Strategic Control of Processing Capacity in Goldfields Region
Burbanks’ location approximately 87 kilometres from Munda gives Auric strategic control of scarce regional processing infrastructure. This ownership eliminates reliance on third-party plants, a significant advantage in a region with limited gold treatment capacity. The upgraded plant’s scalable design positions Auric to capture future organic growth and potential acquisitions, capitalising on Auric’s 521 square kilometres of highly prospective tenements.
The company’s Managing Director, Mark English, highlighted that Burbanks provides a platform not just for Munda’s feed but for a larger gold business, with exploration and regional consolidation opportunities on the horizon.
Technical and Environmental Foundations for Development
The study incorporates detailed mine design, scheduling, and geotechnical parameters based on extensive recent drilling and operational data. Approximately 93% of the mine plan’s feed is classified as Indicated Mineral Resources, with the remainder as Inferred, acknowledging the inherent geological uncertainties.
Environmental and heritage considerations are well advanced. Munda’s recent mining activity and Burbanks’ long operational history mitigate many environmental risks. Auric is progressing necessary permits, including a Native Vegetation Clearing Permit and groundwater extraction licence upgrades, with approvals targeted within six months following submissions in late 2026.
Execution Timeline and Funding Outlook
Construction of the Burbanks processing plant is scheduled to commence early 2027, following final regulatory approvals. Mining at Munda is expected to begin approximately three months prior to plant commissioning to build processing stocks. Commissioning and ramp-up will span eight weeks, aiming for steady-state production shortly after first gold.
Auric assumes funding availability based on its strong cash position, management’s track record, and the supportive gold price environment. However, the company cautions there is no certainty that capital will be secured on acceptable terms, and equity dilution remains a possibility.
Upside Potential and Growth Opportunities
The Munda deposit remains open along strike and at depth, with drilling underway since July 2026 targeting resource extensions. Auric’s extensive landholding and exploration programs could add further feed sources for Burbanks, enhancing long-term production. The processing plant’s design allows straightforward upgrades to 1.2Mtpa, addressing regional processing capacity constraints.
Additionally, Auric is pursuing the acquisition of the Lindsays Gold Project, which could add near-term ounces and complement the integrated operation. The company also sees potential for regional consolidation given fragmented ownership and undeveloped deposits nearby.
Investors should note the study’s Scoping Study status, with ±25% accuracy and inclusion of Inferred Resources, which carry geological risk. The project’s success depends on securing funding, timely approvals, and managing operational risks including labour, equipment availability, and cost escalation.
Bottom Line?
Auric’s integrated Burbanks and Munda plan offers a financially robust pathway to standalone gold production, but hinges on securing $145 million funding and navigating regulatory milestones ahead of a targeted 2028 start.
Questions in the middle?
- Will Auric secure the necessary $145 million capital on terms that preserve shareholder value?
- Can ongoing drilling at Munda convert Inferred resources and extend mine life beyond the initial 32 months?
- How will Auric leverage Burbanks’ scalable processing capacity to capture regional consolidation opportunities?