Auric Mining (ASX: AWJ) has signed binding agreements to acquire two leases comprising the Union Jack gold project in Western Australia’s Goldfields, in a deal that will substantially expand its mineral resource inventory.
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The project, located just 5 kilometres east of Coolgardie and about 15 kilometres from Auric’s Burbanks processing facility, hosts an Inferred Mineral Resource of 3.12 million tonnes at 1.02 grams per tonne gold for 102,000 ounces.
The resource is reported using a 0.5g/t gold cut-off within a pit shell optimised at a gold price of A$7,000 per ounce.
Auric said the acquisition could provide a potential near-term, open-pit mining opportunity and an additional source of feed for Burbanks, which the company intends to re-establish as a strategic gold processing hub by early 2028.
Completion of the Union Jack acquisition would increase Auric’s global mineral resource inventory by 51% on a contained-metal basis, taking it to 7.5Mt at 1.25g/t gold for 301,000 ounces.
The project also contains a higher-grade component, with 2.16Mt at 1.22g/t gold for 85,000 ounces at a 0.65g/t gold cut-off within the same optimised pit shell.
Auric said this higher-grade inventory highlights the potential for Union Jack to provide additional feed to the Burbanks processing plant.
Auric managing director Mark English said the acquisition aligned closely with the company’s strategy of securing near-term gold production opportunities within trucking distance of Burbanks.
“The Union Jack Project dovetails perfectly with our strategy of acquiring near-term gold production assets within trucking distance of the Burbanks Mill,” English said.
Two mineralised lodes have been identified, with most drilling to date concentrated in the southern portion of the western lode. Auric said the deposit has potential for extensions at depth, with underground potential also to be tested through future drilling.
For Auric, the acquisition provides a sizeable increase in resources while keeping the focus on assets that could ultimately feed its nearby processing infrastructure.
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