Auric secures Burbanks equipment as Munda drilling strengthens restart plan

Burbanks Plant Acquisition Moves Auric Towards Construction

Auric Mining Limited (ASX:AWJ) has spent the September quarter turning a proposed gold restart into a procurement program, buying a substantial package of second-hand processing equipment for A$1.2 million. The company estimates equivalent new equipment would cost A$15 million to A$20 million, although the saving remains an estimate rather than realised project value.

The equipment supports the planned 600,000-tonne-per-year CIL plant at Burbanks, near Coolgardie, which is intended to process ore from the Munda open pit and eventually other nearby deposits. The package includes crushing, screening, milling and materials-handling equipment, as well as spare crushers, parts and consumables. It is scheduled to be removed from New South Wales during the December 2026 quarter and installed at Burbanks ahead of construction activity planned for 2027. The acquisition follows Auric’s Burbanks plant equipment deal, which secured the same infrastructure package for the planned restart.

Scoping Study Sets 141,000-Ounce Development Target

Auric’s integrated Burbanks-Munda Scoping Study models 141,254 ounces of recovered gold over 56 months, with an all-in sustaining cost of A$2,843 per ounce at the base-case gold price of A$5,750/oz. The study forecasts A$437 million of EBITDA, pre-production capital of A$138 million and a peak funding requirement of A$145 million. Those figures are study outputs, not a completed feasibility case, and the company says further technical, permitting and development work remains.

The plan is built around mining 2.77 million tonnes at Munda grading 1.75 grams per tonne for 155,844 contained ounces, alongside existing Starter Pit stockpiles. Mining would run for 32 months, while the plant would process material over 56 months. The Burbanks design can potentially be expanded from 600,000tpa to 1.2 million tonnes per year through staged upgrades. Auric previously outlined the $145 million Burbanks-Munda plan, including the same base-case economics and early-2028 first-gold target.

Munda Drilling Supports Pit Design and Resource Growth

Four drilling programs ran at Munda during the quarter: resource-extension, grade control, geotechnical and sterilisation drilling. Western extension RC drilling returned 4 metres at 10.49g/t gold from 46 metres, while grade-control drilling inside the planned pit included 4 metres at 19.34g/t, 15 metres at 5.56g/t and 9 metres at 7.82g/t. These are individual drill intersections, not a revised resource or reserve.

The western extension program comprises 135 holes for about 12,900 metres and is testing mineralisation along strike beyond the current pit design. Around 90,000 metres of close-spaced grade-control drilling is planned over 15 months to define ore blocks to roughly 30 metres below surface. Four diamond holes totalling 580 metres have also been completed, providing the geotechnical work needed to confirm or refine the pit design. Auric said an Munda Ore Reserve was expected in October 2026, while mining remains targeted for late 2027. The results build on the Munda high-grade extension drilling reported in September.

Union Jack Adds 102,000 Ounces Near Burbanks

The Union Jack acquisition adds a second nearby feed option to the proposed Burbanks operation. The project, 5 kilometres east of Coolgardie and about 15 kilometres from Burbanks, contains an Inferred Mineral Resource of 3.12 million tonnes at 1.02g/t gold for 102,000 ounces. Completion occurred on 6 October, after the quarter ended.

The deal comprises A$6.5 million in cash and A$3 million of shares priced at A$0.24, subject to shareholder approval, plus potential milestone payments of up to A$7 million. Auric’s total Mineral Resource inventory rises 51% to 7.5 million tonnes at 1.25g/t for 301,000 ounces. The company has committed to spend A$2 million on drilling over five years and will pay a 1% gross royalty on gold produced from the mining lease. The transaction completed after Auric’s Union Jack acquisition settlement, which reported the same project as a prospective source of Burbanks feed.

Cash Position Leaves Development Funding as the Key Test

Auric held A$33.05 million in cash and cash equivalents at 30 September, after spending A$2.71 million on exploration and drilling and A$1.2 million on Burbanks plant and equipment during the quarter. The company reported A$44.8 million of revenue and A$19.3 million of net profit after tax for the half-year ended 30 June, driven by 6,168 ounces of Starter Pit production. It had no debt other than vehicle financing and remained unhedged.

That operating progress gives Auric a stronger platform than a pure exploration story, but the central execution question remains unresolved: the company’s study identifies a peak funding requirement of A$145 million, while construction, approvals, mine development and plant relocation are still ahead. The next milestones are the Munda Ore Reserve, statutory approvals, the Union Jack share issue vote and evidence that the 2027 construction timetable is holding.