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A recent Monda scoping study identified a cash flow surplus of US$76.9 million under the base case scenario using an assumed gold price of US$2,600 per ounce, which is well below today's spot price. The site is located just 3km southwest of Mincor Resources' Widgiemooltha gold project, which has a mineral resource of 4.3 million tonnes grading 2g/t gold for 273,600 ounces.
The department says four contract mining companies have provided budget pricing estimates for mining, drilling and blasting services at Munda, which will contribute to a detailed mining assessment at feasibility study level.
Mark English, Managing Director of Auric Mining, said: “The drilling program has provided guidance for mine planning, which is exactly what it was designed to do. Our next task is to refine the resource model and re-optimize the model using recently obtained costs from reputable mining contractors and the increasing price of gold. This will create a revised design For a starting pit for mining in late 2024 or early 2025.
Since launching on the ASX in February 2021, Auric has already produced more than 9,700 ounces during two mining campaigns with joint venture partner BML Ventures at the Jeffreys Find mine near the Munda project, generating total gold revenue last year of $29.28 million. The first phase of the project lasts for two years.
The company has already commenced the second phase of mining at Jeffreys Find with grade control drilling completed in January and first ore processing scheduled for mid-late April.
Auric will look to replicate the success of Jeffrey's Find at the larger Munda operation once the mine design and site scheduling are completed.
Production is expected to begin late this year or early 2025.
Is your ASX listed company doing something interesting? communication: mattbirney@bullsnbears.com.au
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