Auric Mining Ltd (ASX:AWJ) is set for a “very lucrative” year at the Jeffreys Find gold joint venture after executing a toll milling agreement with the Greenfields Mill at Coolgardie to process a minimum of 300,000 tonnes of ore.
This is considerably more than the 175,000 tonnes extracted and toll milled from Jeffreys Find in 2023 which realised almost $10 million in total surplus cash for the joint venture with BML Ventures Pty Ltd of Kalgoorlie.
Mining from early March
Equipment will be mobilised to the mine site from this week with mining expected to get underway at the beginning of March and the first parcel of ore expected at the Greenfields Mill in mid-April.
Managing director Mark English said: “Last year our partners extracted 175,000 tonnes of ore from Jeffreys Find Gold Mine and we achieved a great result for the joint venture with almost $10 million total surplus cash generated.
"With a contract to process a minimum of 300,000 tonnes in 2024 at the Greenfields Mill, it should be a very lucrative year for Auric.”
Auric’s joint venture partner BML Ventures has executed a contract with FMR Investments Pty Ltd to toll mill a minimum of 300,000 tonnes of ore at the Greenfields Mill, Coolgardie during 2024 with the project due to conclude in early 2025.
Multiple campaigns
“We are delighted that mining will recommence shortly. There will be multiple processing campaigns throughout the year for Stage Two of the project with BML Ventures Pty Ltd contracted to put the first parcel through the mill in April 2024.
“Stage One of the project produced 9,741 ounces of gold which averaged 1.86 g/t. Jeffreys Find is straightforward mining and we know what to expect.
"Our level of confidence is high that Stage Two will produce substantially more ounces, compared to 2023."
Auric pays contribution
Auric has paid $1 million as a working capital contribution to BML in 2024. Apart from that payment, BML is incurring and paying all additional mining costs and expenses.
After completing this final phase of mining the two partners will subtract all costs before splitting the surplus cash proceeds on a 50:50 basis.
Auric Mining is expecting to receive first cash in the last quarter of 2024 and further cash in the first quarter of 2025.
The company’s shares are trading 8.7% higher on the ASX this morning at $0.125.