Meanwhile, Auric has fired the starter’s gun at Munda, launching a small pit aimed at pulling in a fast $5.3 million by mining 6100 ounces of gold before October.
The move is more than just a quick payday. By stripping waste rock at a 7.6:1 ratio while gold prices are red hot, Auric is setting itself up for lower future costs and a buffer against price swings. The early dig will also give management a crucial window into the broader orebody before it shifts the gears into full-scale production.
Beneath the surface a bigger picture is starting to emerge. Munda hosts 3.65 million tonnes at 1.23 grams per tonne (g/t) gold for 145,000 ounces at a 0.5g/t cut-off. Drop that cut-off to 0.2g/t, and the tally swells to 189,000 ounces.
A 2023 Minecomp scoping study, based on what now looks like a conservative US$2600 (A$3975) per ounce gold price, modelled a higher-grade 1.716Mt resource at 2.2g/t. The numbers reveal that processing could churn out a mouth-watering $76.9 million in surplus cash flow. With bullion prices now on a tear, that potential haul only looks richer.
Auric is already sharpening its plans for the much larger pit, with the big dig slated to fire up in 2026.
The timing of the deal could hardly be better. With gold hovering near record highs, Auric’s decision to mop up these assets looks shrewd. The transaction may have cost $1.4 million, but the operational security and efficiency it delivers could prove far more valuable down the line.
With the groundwork now firmly in place, Auric Mining looks poised to transform Munda into a serious gold-producing force in the WA Goldfields.
By securing critical infrastructure, streamlining ownership and locking in mineral rights – all while gold prices remain sky-high – the company has de-risked its operation and set the stage for a major production ramp-up that could deliver outsized returns for years to come.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
