However, with gold now soaring 50 per cent higher and hitting all-time highs last week at $5204 per ounce, the estimated cashflow figure pales in comparison and is likely to become significantly bigger.
Auric Mining managing director Mark English said: “Munda is our major asset containing a sizeable gold resource. We are right on schedule and have mobilised all the necessary machinery and infrastructure. Earthworks have commenced.”
The starter pit is expected to wrap up in about six months, after which Auric says the company plans to roll out pit optimisation and mine planning for a significantly bigger dig with eyes firmly fixed on full-scale production by 2026.
Using a 0.5g/t cut-off, Munda hosts a mineral resource of 3.65 million tonnes at 1.23g/t for a total of 145,000 ounces of gold. At a lower cut-off of 0.2g/t gold the indicated and inferred resource jumps to 189,000 ounces.
A 2023 scoping study on Munda undertaken by Kalgoorlie-based consulting firm Minecomp found that using a base case gold price of $2600 per ounce, the mine would be able to produce 1.716Mt of ore at 2.2g/t to deliver a hefty $76.9M in undiscounted surplus cash flow.
Hot on the heels of producing more than $100M in revenues from the company’s once unloved Jeffreys Find mine near Norseman, Auric is now cashed up and appears ready to make its mark as a fully owner-operated mining company at Munda – and thus become a substantial gold producer in the district.
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