- Auric Mining (AWJ) partners with BML Ventures (BML) to commence gold mining at the Jeffreys Find deposit near Norseman, WA
- The Jeffreys Find deposit hosts known gold mineralisation, however, it has never been mined which they company says presents a strategic opportunity
- Auric and BML will contribute to costs associated with construction, equipment and other working capital costs associated with mining
- AWJ shares end the day 11.1 per cent in the green to close at 10 cents
Auric Mining (AWJ) and BML Ventures (BML) have entered an agreement to commence gold mining at the Jeffreys Find deposit near Norseman, Western Australia.
The deposit forms part of the Jeffreys Find Project and is one of two areas where gold mineralisation has been confirmed, with the other being at the Neo prospect which lies 550 metres northwest of the deposit.
Jeffreys Find has a mineral resource estimate of 1.21 million tonnes at 1.22 grams per tonne gold for 47,900 ounces.
Auric recently completed metallurgical testwork which defined “excellent” characteristics for conventional carbon-in-leach processing and then completed a scoping study for open-pit mining and third-party toll treatment of the Jeffreys Find deposit.
The results of the study were positive which prompted the companies to proceed with the “next logical step” of progressing mining activities.
The deposit has never been mined which the company said represents an opportunity to realise its commercial potential.
Under the agreement, Auric will be responsible for all costs associated with permitting the project and with building a site access road. However, a pre-mining grade control program and diamond drilling to better optimise mining will be equally funded by both companies.
Upon a decision to mine, BML will be solely responsible for all capital costs and payment of haulage, staff, equipment, contractors, and all working capital costs associated with mining.
Auric Managing Director Mark English said the partnership is a “substantial step” in Auric’s growth.
“The skills and resources that BML bring to the project will enhance Jeffreys Find development, benefiting both companies while limiting Auric’s downside risk to zero,” he said.
“The opportunity BML presented was just too good not to proceed.”
The companies will now undertake permitting and and mine-planning activities.
AWJ shares ended the day 11.1 per cent in the green to close at 10 cents.