Join our daily newsletter At The Bell to receive exclusive market insights
- Burbanks provides pathway to establishing a standalone integrated gold producer
- Project provides strategic control of critical processing infrastructure
- Positive outcome from recent mining of Munda starter pit
- Larger singular open pit has been considered in the study
Auric Mining (ASX:AWJ) has obtained positive outcomes from an integrated Burbanks and Munda scoping study that supports the re-establishment of the Burbanks processing facility and the restart of mining at the Munda gold deposit, located in the Goldfields region of Western Australia.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The explorer’s MD, Mark English, said the re-establishment of Burbanks provides a pathway to establishing a standalone integrated gold producer.
“This study is another important step in Auric’s evolution. It shows a clear pathway to becoming a standalone gold producer, with Munda providing the initial feed and Burbanks giving us control of a strategically important processing facility in the Goldfields,” Mr English said today.
“Just as importantly, this is not simply a single-mine opportunity. Burbanks gives Auric a platform for continued growth. With strong forecast cash flow, a scalable plant design and 521km2 of prospective ground, we see a real opportunity to build a much larger gold business over time through exploration success, resource growth and potential regional consolidation and acquisitions.”
The quality and profitability of the Munda deposit was tested through the mining of a starter pit. A total of 202K tonnes of mineralised material at 1.84 grams per tonne was mined, of which 126K tonnes at 2.46 g/t was treated in conventional third-party gold plants. All gold produced was sold at an average price of $7,178/ounce.
“The starter pit has given us valuable operating experience and added confidence in Munda. We now have a strong base from which to progress the next stage of approvals, development and execution while continuing to grow the pipeline of future feed for Burbanks,” Mr English told shareholders.
Burbanks has been redesigned to target a nominal 600,000 tonnes per annum (tpa) throughput rate, allowing it to process all available material from Munda over a period of 56 months. The plant is also designed to be scalable to 1.2 million tpa through a series of simple upgrades in the future.
Mr English said re-establishment of Burbanks provides a pathway to establishing a standalone integrated gold producer, initially sourcing mineralised material from the Munda gold deposit.
He added that the Burbanks facility, located approximately nine km south of Coolgardie and 87 km from Munda, provides Auric with strategic control of critical processing infrastructure in a region with limited available gold treatment capacity, positioning the company to unlock value from Munda while also creating a platform to capture future organic and inorganic opportunities.
The Munda gold deposit has a current JORC 2012 resource estimate of 4.3M tonnes at 1.42 g/t for 194K ounces, of which 84% is classified as Indicated.
Within the study, approximately 93% of material to be processed is classified as Indicated, with seven percent being Inferred resources.
AWJ was steady at 21.5¢ with a mkt cap of $40.22M.
Join the discussion: See what HotCopper users are saying about Auric Mining Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
-1200x645-380x200.jpg)
