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Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to announce that a toll milling agreement was executed on 30 March 2023 between FMR Investments Pty Ltd (FMR)and BML Ventures Pty Ltd (BML). The agreement provides for toll milling of ore from the Jeffreys Find gold deposit at FMR’s Greenfields Mill 3km east of Coolgardie.
Highlights
- Toll treatment agreement executed with Greenfields Mill at Coolgardie.
- Decision to Mine agreed between Auric and BML.
- Mine budgeting and detailed planning commenced.
- Equipment being mobilised for mining start in early April 2023.
With the toll milling agreement finalised, Auric and BML have executed the Decision to Mine notice. Equipment mobilisation and detailed mine planning has commenced.
“This is an important stage in Auric’s growth to be generating cash within the next six months with negligible downside to Auric is a terrific result.” said Managing Director Mark English. “The cash generated will be used to advance our exploration projects and Munda gold deposit – Our timing is perfect with the surging Australian gold price.”
Mining
The Jeffreys Find gold deposit will be mined in conjunction with BML, a local mining contractor. Importantly for Auric, BML incurs and pays all on-going and working capital costs in mining the gold resources. The net cash surplus, after payment of all mining and processing costs, will be split 50:50 between Auric and BML.
The mining is planned in 2 stages: a starter pit and final pit. The agreement includes provision for an interim split of surplus cash following completion of the starter pit1.
The toll milling agreement with FMR will cover mining of the starter pit. Approximately 150,000t of ore will be delivered to the Greenfields mill in three parcels. The current mine plan points to early June for first delivery of ore.
The starter pit will be mined from April through to July. It is expected that all processing will be completed and gold delivered to the Perth Mint by end of September 2023.
Numerous mining related activities have been completed or are being undertaken:
- A Small Mine – Mining Proposal has been approved by DMIRS. This allows for the start of mining.
- Grade control drilling is complete and the results are being used for detailed mine planning.
- The Full Mine – Mining Proposal is being assessed by DMIRS.
- A haul road has been formed with ongoing work required to compact and sheet the haul road as mining progresses.
- Equipment is being mobilised.
Figure 1. Mark English, Managing Director at Jeffreys Find.
Processing
FMR’s Greenfields Mill has a long history as a toll milling facility and appropriate procedures for processing ore from multiple clients. FMR will be paid a fee for processing the ore from Jeffreys Find. The gold produced by the mill will be further refined at the Perth Mint.
This article includes content from Auric Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
AWJ:AU
High grade Massive Sulphide Intercepts Confirmed at Oval
HIGHLIGHTS:
- OVD027 confirms the continution of high grade massive sulphide from OVD0211 with an intercept of 6.1 metres of 4.16% Cu, 3.51% Ni, 0.G3g/t E3, and 0.13% Co from G8.2 metres encountered between broader high grade zones of:
- A dense disseminated intercept - 26.2 metres of 0.44% Cu, 0.52% Ni, 0.12g/t E3, and 0.03% Co from 72.0 metres and
- A net textured intercept - 15.3 metres of 1.15% Cu, 0.79% Ni, 0.35g/t E3, and 0.04% Co from 104.3 metres;
- A high grade broad intersection is confirmed at the central part of the Oval area by OVD026. It includes a massive sulphide intercept in hole OVD026 of 1.8 metres of 3.21% Cu, 3.32% Ni, 0.6Gg/t E3, and 0.14% Co from 105.0 metres within broader mineralisation of:
- 19.8 metres of 1.23% Cu, 0.98% Ni, 0.36g/t E3, and 0.05% Co from 91.2 metres.
OVD026 is located 100 metres northwest of the previously announced 8.8 metres of massive sulphide identified in drillhole OVD021.
On completion of the Phase 2 exploration work and receipt of all assays, Managing Director Gan-Ochir Zunduisuren, commented:“The 2024 Phase 1 and 2 drilling and exploration programs have confirmed the broad presence of high-grade mineralisation in the Oval gabbroic intrusion. The grades intercepted in some of the drillholes are exceptional and may be indicative of broader potential over a larger area, given Oval is a greenfields discovery.
The 2025 exploration program will focus on obtaining information on the size/metal content potential of the Oval Cu-Ni-PGE mineral system as well as targeting the possible deeper magmatic sources at Oval. Broader exploration is also planned at potential extensions of Oval and nearby look-a-like prospects. We look forward to updating shareholders on progress, with drilling expected to commence in around 8 weeks”.
Summary of Phase 2 exploration drilling at Oval Cu-Ni-PGE project
The Company’s recent drilling work has predominantly focused on finding high-grade mineralisation in the olivine-amphibole gabbro at the Oval project. The multiple intercepts of massive sulphide mineralisation with different ratios of metal contents throughout the Oval gabbroic intrusion is highly encouraging for the presence of one or more deeper sources of high grade mineralisation in the opinion of ABM.
Figure 1. Plan view of drillhole locations on high resolution magnetics map (RTP)
Drillhole OVD02c
Drillhole OVD026 was designed to test the Down-Hole Electromagnetic (DHEM) conductor plate identified as OVD007_L2_B (reinterpretation of OVD007_L2_A2 by Southern Geoscience Consultants), which exhibits a conductance of 1,000 siemens. The drilling intersected a total of 1G.8 metres of mineralisation with 1.23% Cu, 0.G8% Ni, 0.36g/t E3, and 0.05% Co from G1.2 metres including;
- 4.8 metres of @ 0.45% Cu, 0.43% of Ni, 0.14g/t E3, and 0.02% Co of dense disseminated mineralised gabbro from 91.2 metres,
- 6.6 metres of @ 1.56% Cu, 0.G0% Ni, 0.50g/t E3, and 0.04% Co of net textured mineralisation from G6.0 metres,
- 2.4 metres of @ 1.52% Cu, 1.3G% Ni, 0.43g/t E3, and 0.07% Co of semi massive sulphide mineralisation from 102.6 metres,
- 1.8 metres of @ 3.21% Cu, 3.32% Ni, 0.6Gg/t E3, and 0.14% Co of massive sulphide mineralisation from 105.0 metres, and
- 4.2 metres of @ 0.57% Cu, 0.45% of Ni, 0.21g/t E3, and 0.02% Co of dense disseminated mineralised gabbro from 106.9 metres (Table 1 provides a detailed breakdown of mineralisation intervals).
OVD026 is located in the Oval area, which is approximately 100 metres northwest of the previous intersection identified in drillhole OVD0213. This intercept may represent an extension of the known massive sulphide mineralisation in the Oval area and highlights the potential for further expansion of massive sulphide zones within the broader prospect area (Figures 1 and 3).
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This article includes content from Asian Battery Metals PLC, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
