Auric Mining has upgraded its Munda gold resource by 32% to 192,000 ounces and released a robust integrated scoping study for its $145 million Burbanks-Munda development, positioning the company for standalone gold production.
- Munda Mineral Resource increased 32% to 192,000oz gold
- Integrated Burbanks processing plant and Munda open pit project with $145M peak funding
- Major drilling programs underway to extend and refine Munda resource
- New CEO Gareth Solly appointed with transition plan for Managing Director
- Strong cash position of A$38 million supports 8.9 quarters of funding
Significant Resource Upgrade at Munda
Auric Mining (ASX:AWJ) has reported a 32% increase in its Munda gold deposit Mineral Resource, now estimated at 4.20 million tonnes grading 1.43 g/t for 192,000 ounces of gold, despite mining depletion of around 10,000 ounces from the Starter Pit. This upgrade follows the Starter Pit outperforming expectations by 46%, producing 8,886 ounces against a budget of 6,100 ounces, which validated the higher-grade zones identified in detailed grade control drilling spaced at 5m by 5m.
The resource remains open along strike and at depth, with ongoing drilling programs targeting infill and extensions. A large reverse circulation (RC) drilling campaign of 135 holes for 12,900 metres commenced post-quarter, alongside geotechnical diamond drilling to refine pit wall parameters ahead of Ore Reserve estimation in the second half of 2026. Grade control drilling, planned to start in August, aims to reduce grade uncertainty with approximately 89,000 metres targeted.
Integrated Scoping Study Highlights Robust Economics
Following the resource upgrade, Auric released an integrated Scoping Study for the combined development of the Munda open pit and the Burbanks processing facility. The study outlines a 600,000 tonnes per annum carbon-in-leach (CIL) plant at Burbanks, located 87 kilometres from Munda, designed to process 2.7 million tonnes of mineralised material at 1.75 g/t gold, yielding approximately 141,000 recovered ounces over 56 months.
Key financial metrics include a capital cost of A$137 million, peak funding requirement of A$145 million, an all-in sustaining cost (AISC) of A$2,843 per ounce, and an EBITDA of A$437 million based on a gold price of A$5,750 per ounce. The project targets first gold production in early 2028, with mining expected to start ahead of mill commissioning to build processing stocks. The plant is designed with expansion potential to 1.2 million tonnes per annum, positioning Burbanks as a strategic regional processing hub.
Leadership and Operational Advancements
The company has strengthened its leadership with the appointment of Gareth Solly as Chief Executive Officer and Executive Director, effective 18 May 2026. Solly brings over 20 years’ experience in the Western Australian gold sector, notably transforming Black Cat Syndicate into a 100,000-ounce-per-annum producer. A formal transition will see Solly become Managing Director by December 2026, with founding MD Mark English moving to Executive and Finance Director roles to maintain continuity and financial discipline.
Operationally, Scott Bailey was appointed Processing Manager in April 2026 to oversee the redevelopment of the Burbanks processing facility. Bailey’s experience includes roles at Black Cat Syndicate, KCGM, and Ramelius, with a track record of delivering projects ahead of schedule and under budget.
Exploration and Regional Growth Pipeline
Exploration continues across Auric’s portfolio, with 127 aircore holes drilled for 3,675 metres at Chalice West and Loded Dog, and 31 RC holes for 4,047 metres at Amorphous and Foote’s Find prospects. Assay results are pending and further drilling is planned for the September quarter in the Higginsville, Widgiemooltha, and Spargoville areas.
Auric also holds interests in the Lindsay’s Gold Project near Kalgoorlie, though transfer of some tenements remains subject to Wardens Court decisions. The company maintains a broad tenement base in the Widgiemooltha-Norseman region, including the Munda, Burbanks, Chalice West, and Spargoville projects.
Financial Position and Funding Outlook
Auric ended the quarter with a cash balance of A$38 million and no debt, supported by A$4.1 million in gold sales from Munda during the quarter and year-to-date distributions from the Jeffreys Find joint venture. Operating cash outflows included production costs of A$1.24 million and staff costs of A$1.996 million. Investing activities primarily related to exploration and evaluation spending of A$1.56 million.
The company’s estimated funding runway stands at 8.9 quarters based on current cash flows and expenditure levels. Financing options for the Burbanks-Munda project remain under consideration, including equity, debt, and royalties, with no final decisions announced.
Bottom Line?
Auric Mining’s upgraded resource and integrated project plan set a clear path to standalone production, but execution risks around financing and construction remain critical in the near term.
Questions in the middle?
- How will Auric structure financing to fund the $145 million Burbanks-Munda development?
- What impact will ongoing drilling results have on extending the Munda resource beyond current estimates?
- How quickly can Auric ramp up processing capacity at Burbanks to support regional growth?