Unlike Jeffreys Find, Munda is fully owned by Auric and marks a significant move away from its joint venture model and into sole-operated production. The company has contracted its own dry-hire mining fleet from MHM Contracting and hired Kalgoorlie-based Total Mining Services for all the grade control drilling and blasting services.
Auric has already kicked off mining at a starter pit and expects to pull out a total of 125,000t at 1.8 grams per tonne (g/t) for a maiden 6100-ounce gold haul for US$2635 (A$4000) per ounce.
When it first crunched the numbers, Auric based its projections on a conservative US$3500 (A$5351) gold price – enough to deliver a tidy $5.3 million in free cash. Now that gold is soaring past the $5400 an ounce mark, Munda’s opening act could deliver far more than expected, setting Auric up for a significantly bigger early payday. The initial pit, which is part of a larger resource, is expected to be wrapped up next month.
Beyond the starter pit, Munda is also flexing some serious gold muscle beneath the surface.
At a 0.5g/t cut-off, the overall Munda deposit hosts 3.65 million tonnes grading 1.23g/t for a healthy 145,000 ounces of gold. If the cut-off is dropped to 0.2g/t, the resource swells to 189,000 ounces across the indicated and inferred categories.
Kalgoorlie-based Minecomp put Munda under the microscope in a 2023 scoping study and came away impressed. Using a conservative $2600 per ounce gold price, the study fired up a mineable resource of 1.716Mt at a hefty 2.2g/t, pointing to a mouth-watering $76.9 million in undiscounted surplus cash flow.
With Jeffreys Find now in the rear-view mirror and Munda roaring into life, Auric Mining has shifted gears from JV passenger to solo driver, armed with fresh cash, a proven model and a rising gold price wind at its back.
If the early numbers are any guide, the company’s next chapter could shine even brighter, cementing its transformation from small-cap explorer to a fully-fledged WA gold producer.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
