Auric Mining (ASX: AWJ) has commenced the second gold milling campaign for 2024 of 150,000 dry metric tonnes from the Jeffreys Find Gold Mine near Norseman in WA.
At the commencement of toll milling at the Greenfields Mill, Auric’s joint venture partner, BML Ventures Pty Ltd of Kalgoorlie (BML), had delivered 75,600 tonnes of ore to the Mill.
BML is mining on an around-the-clock basis with around 27,000 tonnes of ore on the ROM Pad at Jeffreys Find, awaiting transport to Greenfields.
Milling will take place across approximately six weeks and conclude in early September 2024.
BML is planning to mine up to 400,000 tonnes this year and into early 2025 with 300,000 tonnes contracted to be processed by Greenfields.
Further gold milling campaigns are scheduled later in 2024.
Auric is expected to receive its first surplus cash distribution from the JV in late August and further distributions in September 2024.
“We have the good fortune of pouring gold just as the price firms. It happened last year when the price went to $3,000 an ounce, this year it’s around $3,600 an ounce,” Auric Managing Director, Mark English, said.
“The ever-increasing gold price will result in Auric and our joint venture partner generating cash surpluses well in excess of what we had budgeted and anticipated.
“150,000 tonnes is a sizeable parcel of ore for this campaign. While it will take six weeks or so to mill, we expect it to generate well in excess of $25 million through gold sales for the joint venture.
“The mill contract is to process 300,000 tonnes in 2024. This 150,000 tonnes parcel will be the largest for Stage 2 of mining of Jeffreys Find. That leaves an additional 120,000 tonnes for milling at Greenfields towards the end of 2024.
“Jeffreys Find will be a substantial cash producer for Auric in 2024. We are on target to receive our first distribution within about a month,” Mr English said.
The joint venture is between Auric and BML. BML are the miners, operators and managers of the Jeffreys Find Gold Project. BML incur and pay all mining, trucking, milling costs and related expenses. After sale of the gold the partners subtract all costs before splitting the surplus cash proceeds on a 50:50 basis. Surplus cash distributions are paid to BML and Auric after agreement between the partners.
