Auric Mining Ltd Gets Set To Bank More Cash From Jeffreys Gold Mine, WA

Auric Mining Limited (ASX: AWJ) will generate more cash from the second-stage mining of the Jeffreys Find Gold Mine near Norseman, WA. While a short mine life, Auric progressed from tenement acquisition to IPO to cash flows in just three years.

The joint venture with BML Ventures Pty Ltd of Kalgoorlie (BML) produced a total of 9,741 ounces of gold in two campaigns, with all ore processed at the Greenfields Mill, Coolgardie.

The previous mining saw Auric receiving $4.7 million, being its share of total surplus cash distributions.

The company acquired Jeffreys Find from Mincor Resources Ltd (ASX: MCR) in September 2020.

New agreement

 A toll milling agreement was executed with Greenfields Mill, Coolgardie to process a minimum of 300,000 tonnes of ore in 2024.

Mining will commence in early March 2024. The first parcel of ore is expected at Greenfields Mill in mid-April 2024.

Auric paid $1.0 million as a working capital contribution to BML in 2024.

Apart from that payment, BML is incurring and paying all additional mining costs and expenses.

After completing this final phase of mining the two partners will subtract all costs before splitting the surplus cash proceeds on a 50:50 basis.

Cash from the mining is expected in the last quarter of 2024 and further cash in the first quarter of 2025.

The Jeffreys Gold Mine is due to conclude in early 2025.  It has a short but highly profitable project life.

Cash generative

Auric banked $4.5 million cash in the December 2023 quarter.

The second stage will boost its cash coffers further after costs.

The next project is likely to be a Scoping study to assess the potential for open pit mining of the Munda Gold Deposit underway.

Continued exploration focuses on expanding the resources of 200,000 ounces at an average of 1.4 g/t gold.

While low-grade gold, Auric, and BML had success with the low-grade Jeffrey’s Mining.

With a market cap of a tick over $13 million, around $4 million in the bank with more to come, savvy management, and cash to burn, Auric sets itself apart from the pack and looks set to run.

 

 

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