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Auric Mining Limited (ASX: AWJ) (Auric or the Company) advises it has begun mobilising plant and equipment including a dry hire fleet to the Munda Gold Mine site, 5km from Widgiemooltha, Western Australia. Site preparation is underway for the imminent mining of a Starter Pit.
Highlights
- Munda Mining Proposal and Mine Closure Plan approved.
- Starter Pit site preparation commenced.
- Munda will be mined by Auric, in its own right, with Auric employees.
- Grade control drilling on a 5m x 5m pattern completed.
- Contracts executed for mining fleet hire, drill and blast and key suppliers.
- Mine camp for 12 people established near Munda.
Management Comment
Managing Director, Mark English, said: “This is a milestone moment for Auric. Our whole team is full of optimism and excited to commence the Munda Gold Mine Starter Pit.
“Munda is our major asset; containing a sizeable gold resource. We will start out conservatively with a target to mine 125,000 tonnes of ore, producing around 6,100 ounces of gold at a projected AISC of A$2,635 per ounce.
“We are right on schedule and have mobilised all the necessary machinery and infrastructure. Earth works have commenced, we will begin mining in a few days.
“The Starter Pit will take us approximately six months to complete.
“The project is another significant step, both in our ambition to become a substantial gold producer in the district, and to develop Munda to its full potential.” said Mr English.
Photo 1: MHM Contracting 40-tonne Moxy dump trucks on site at Munda Gold Mine.
The Munda Starter Pit Mining Proposal and Mine Closure Plan have been approved by the WA Government’s Department of Energy, Mines, Industry Regulation and Safety (DEMIRS).
Survey mark-out of the pit crest, haul road, waste dump, ROM pads and site office has been completed.
Auric has executed a contract to dry hire the mining fleet from MHM Contracting Pty Ltd. The fleet will be operated by Auric employees.
A grade control program over the Starter Pit extents for those holes accessible from surface on a 5m x 5m pattern has also been completed. A total of 428 holes for 14,670m were drilled by Kalgoorlie-based Total Drilling Services. Results have been received allowing the mine geologists to define near surface ore blocks in advance of mining. Further grade control drilling on a 5m x 5m pattern will be undertaken as mining exposes new benches.
The Company will commence mining the Starter Pit this week, where it is estimated 125,000 tonnes of ore will be extracted at an estimated grade of 1.8g/t Au at an AISC of A$2,635 per ounce (Tables 2 and 3). The Starter Pit will take approximately six months to complete.
Click here for the full ASX Release
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
Auric Mining
Investor Insight
Given its quick transition from ASX listing to gold production in just three years, and a significant exploration upside at its world-class assets in Western Australia's prolific goldfields, Auric Mining is well-worth a good deal of consideration for sophisticated investors.
Overview
Auric Mining Limited (ASX:AWJ) is a gold exploration and mining company based in Western Australia. In three-and-a-half years since its ASX listing, Auric has become a gold producer in this premier jurisdiction.
Since incorporation, it has moved from zero to 250,000 ounces of gold resources and zero to 282 square kilometers of tenements. Auric Mining is in the company of some of the biggest gold projects in the Goldfields, including the St Ives Gold Mine, Karora Resources’ Higginsville Operations & Beta Hunt Mine, all multi-million-ounce mines.
Besides gold, there are numerous precious metals being mined in the area with world-class deposits of nickel, lithium and rare earths. Auric is gold-focused and has the potential to become a significant producer in the region.
The Jeffreys Find Pit as of 16 July 2024
Partnering with Auric in its Jeffreys Find Project is BML Ventures of Kalgoorlie (BML), a well-known and adept Kalgoorlie contractor. BML is a specialist mining contractor. It has particular expertise in shallow, open-pit mining with short duration projects in The Goldfields.
The Jeffreys Find Project commenced in May 2023 and is due for completion in the first quarter of 2025. The joint venture is partially exploiting 47,000 ounces of gold resources.
Gold ore on the ROM Pad at Jeffreys Find, Norseman. Ore was hauled to Coolgardie for milling in 2023.
Stage One is now complete and Auric has commenced its second gold milling campaign for 2024 of 150,000 dry metric tonnes from the Jeffreys Find gold mine on 24 July 2024.
Success for Auric at Jeffreys Find means the company is self-funding for 2024 and able to sustain its exploration and development activity without need for additional capital raising. Auric now has a road map for five years of continuous mining and profits.
Grade control drilling at Munda was completed in January 2024
Auric’s primary focus continues to be on the company’s flagship asset - The Munda Gold Project.
To date almost 200,000 ounces of gold resources have been identified at Munda, the asset being part of the wider Widgiemooltha Gold Project, encompassing 22 tenements.
Munda is one of the largest deposits in the Widgiemooltha area having the potential to become a significant gold project.
In mid-year 2023 the company released to the ASX a third-party scoping study on the economics and potential of open-pit mining at Munda.
The scoping study estimates the mining of up to 120,000 ounces of gold over a three-year mine life. It is envisaged gold ore would be toll-processed at a nearby Coolgardie Mill. The study projects free cash profits of between $50 million and $100 million, based on various gold prices.
Production from Munda could commence in the fourth quarter of 2024.
Auric also announced the execution of a binding term sheet for the partial purchase of Win Metals' nickel and lithium rights within the Munda gold project area including seven tenements or applications. Auric further plans to mine a trial pit at Munda Gold potentially in Q1 2025.
Auric is also planning to progress its Spargoville Project, where it has tenements ideally positioned along strike from the Wattle Dam gold mine, a prolific mine which produced 268,000 ounces of gold at 10 g/t, between 2006 and 2013.
An experienced and savvy management team leads Auric Mining towards its vision of becoming a significant gold producer in Western Australia. With the three directors owning approximately 17 percent of the company, they are focused and motivated for success.
Auric Mining’s board of directors: Mark English, Managing Director; Steve Morris, Chair; and John Utley, Technical Director
Steve Morris, non-executive chairman, has more than 25 years of experience in financial and natural resources markets.
Mark English, managing director, has a 40-year career as a chartered accountant and is at ease with all facets of running a public company on the ASX including major equity and debt raisings.
John Utley, technical director, has 35 years of experience in gold exploration and development.
This range of expertise offers a high level of confidence that the company will achieve its goals.
Company Highlights
- Auric Mining is a publicly listed company with a market cap of around $13m.
- Its flagship asset is the 200,000-ounce Munda Gold Project at Widgiemooltha, just 100 kms from Kalgoorlie. It has an aim to begin production in 2024 before more intensive mining from 2025 onwards.
- During 2023 the focus was on mining at its Jeffreys Find Gold Mine, near Norseman. Stage One mining between May and November 2023 produced 9,741 ounces of gold, creating almost $30 million in gross revenue.
- A final reconciliation saw surplus cash of $9.5 million generated. Auric banked $4.78 million, being 50% of the surplus cash as agreed with its JV partner, BML Ventures of Kalgoorlie.
- Auric has commenced the second gold milling campaign for 2024 of 150,000 dry metric tonnes from the Jeffreys Find gold mine.
- The company executed a binding term for the partial purchase of Win Metals' nickel and lithium rights within the Munda Gold Project area further improving the pathway to mining a trial pit at Munda gold project, potentially in Q1 2025.
- As an explorer, Auric has accumulated 282 square kilometers of tenure as it looks to find and mine a million ounces of gold between Kalgoorlie and Norseman.
- The area hosts some of the richest mineral deposits and mines in the world. In addition to gold, Auric also has opportunities for discovery of lithium, rare earths and nickel.
- Auric has three main projects: The Munda Gold Project which is part of the Widgiemooltha Gold Project; Jeffreys Find Gold Mine; The Spargoville Project.
- The company has a board and leadership team with a track record of delivering success for shareholders, particularly in discovering and bringing to production gold projects.
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Western Australian gold producer, explorer and developer with world-class deposits
Mithril Silver and Gold Returns 11.5m @ 8.61 g/t Gold, 57.6 g/t Silver from 44.5 Metres in Hole T2DH25-006 at Target 2 Area, Copalquin Property, Mexico
Exploration Progress Update
Drilling at Target 2 (Las Brujas) has returned excellent results, with shallow holes over a 200-metre strike length intersecting very high-grade gold and silver within a broad, near-surface structure. Hole T2DH25-006 returned 11.5m @ 8.61 g/t gold, 57.6 g/t silver from 44.5m, including 3.85m @ 25.33 g/t gold, 128 g/t silver from 46.65m including 0.85m @ 109.5 g/t gold, 325 g/t silver from 46.65m. Follow-up drilling ~80 metres down dip is planned for the next phase.
Momentum Building Across the Copalquin District – Multiple Targets Advancing (Figure 2)
- Exciting Progress at El Peru (Target 2 Extension): The first phase of drilling at El Peru, 400 m east of Las Brujas, has been completed. Multiple shallow drillholes have shown further extension of the mineralized footprint of this emerging high-grade zone (samples dispatched).
- Eastern District Activity Ramps Up: A second exploration camp has been established to support aggressive mapping and target generation at Targets 2 and 3, highlighting our commitment to unlocking the eastern potential of the district.
- High-Potential for additional Discovery at Target 5 – El Apomal: A new target has been defined at the historic El Apomal workings. A 130-metre underground adit has been dewatered, mapped, and sampled (assays pending), and a surface vein has been traced over 300 metres — a compelling new drill target developing.
- District-Scale Potential Confirmed: Over 1,000 metres of vertical relief between Target 2 and Target 5 across 5 km demonstrates the immense scale and structural complexity of the Copalquin district, underscoring its potential to host a large, multi-target mineralized system.
- Resource Expansion Underway at Target 1: Deep drilling at the El Refugio structure continues to intercept the targeted zone, with samples dispatched for assay. Drilling success here will directly contribute to an upcoming Target 1 resource update.
“We’re advancing on multiple fronts across the Copalquin district, with strong drill results at Las Brujas, exciting new potential at El Apomal, and ongoing success at our flagship Target 1 resource area,” said John Skeet, CEO and Managing Director. “The scale of this system is becoming increasingly evident, with multiple mineralized zones across the district. With drilling, mapping, and sampling all in full swing, we’re well positioned to continue building momentum and unlock significant value through discovery and resource growth.”
COPALQUIN GOLD-SILVER DISTRICT, DURANGO STATE, MEXICO
Figure 1 Copalquin District location map, locations of mining and exploration activity and local infrastructure
With 100 historic underground gold-silver mines and workings plus 198 surface workings/pits throughout 70km2 of mining concession area, Copalquin is an entire mining district with high-grade exploration results and a maiden JORC resource. To date there are several target areas in the district with one already hosting a high-grade gold-silver JORC mineral resource estimate (MRE) at the Target 1 area (El Refugio-La Soledad)1 and a NI 43-101 Technical Report filed on SEDAR+, supported by a conceptional underground mining study completed on the maiden resource in early 2022 (see ASX announcement 01 March 2022 and metallurgical test work (see ASX Announcement 25 February 2022). There is considerable strike and depth potential to increase the resource at El Refugio and at other target areas across the district, plus the underlying geologic system that is responsible for the widespread gold-silver mineralisation.
With the district-wide gold and silver occurrences and rapid exploration success, it is clear the Copalquin District is developing into another significant gold-silver district like the many other districts in this prolific Sierra Madre Gold-Silver Trend of Mexico.
Click here for the full ASX Release
This article includes content from Mithril Silver and Gold, 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.
Exceptional Lithium Intercept Extends Red Mountain Discovery Further to the North
Key Highlights
- Outstanding lithium mineralisation returned in assays for diamond drill-hole RMDD003, which intersected:
- 32.4m @ 3,260ppm Li from 57.2m, including 8.6m of ultra high-grade mineralisation @ 5,060ppm Li from 67.7m;
- 13.8m @ 1,330ppm Li from 39.6m; and
- 23.3m @ 1,610ppm Li from 94.4m to end-of-hole
- RMDD003 marks the highest-grade lithium intercept recorded to date at Red Mountain.
- Mineralisation successfully extended 630m north of previous northernmost intersection in hole RMDD002.
- Hole ends in lithium, with mineralisation remaining open down-dip to the east and along strike to the north.
- Assays pending from five other recently completed drill- holes.
To hear CEO Matt Healy discuss this ASX Release click here
The thick zones of lithium mineralisation encountered in the northernmost drill-hole at Red Mountain highlight the increasing scale of the project, with strong lithium mineralisation now intersected in all drill- holes spanning a north-south strike extent of over 5.6km and surface sample geochemistry indicating further potential to the north, south and west of the current drilled extents7, 9 (Figure 3).
Of particular significance in hole RMDD003 is the high-grade nature of the mineralisation. The nearest drill-hole is RMDD002, which intersected 32.1m @ 2,050ppm within a broader 86.9m intersection at 1,470ppm Li from 18.3m. The high-grade zone in RMDD002 has persisted north to RMDD003, and increased in grade significantly to over 3,000ppm lithium.
Assays are pending for the other five holes drilled as part of the April diamond drilling campaign.
Astute Chairman, Tony Leibowitz, said:
“Our 2025 exploration campaign is off to a fantastic start, with exceptional assays returned for the first step-out diamond hole, RMDD003. We are impressed by the thickness and grade of the mineralisation, with the high-grade intercept returned from this hole showing that the previously identified high-grade zone extends for a considerable distance to the north.
“This provides further indication that Red Mountain is unfolding as a lithium discovery of significance in North America. With mineralisation now defined by drilling over a strike length of almost 6 kilometres, we are looking forward to seeing what the remaining drill-holes will deliver. The information obtained from this round of drilling should put us on a clear trajectory to advance Red Mountain towards a maiden JORC Mineral Resource Estimate later this year.”
Background
Located in central-eastern Nevada (Figure 4) adjacent to the Grand Army of the Republic Highway (Route 6), which links the regional mining towns of Ely and Tonopah, the Red Mountain Project was staked by Astute in August 2023.
The Project area has broad mapped tertiary lacustrine (lake) sedimentary rocks known locally as the Horse Camp Formation2. Elsewhere in the state of Nevada, equivalent rocks host large lithium deposits (see Figure 4) such as Lithium Americas’ (NYSE: LAC) 62.1Mt LCE Thacker Pass Project3, American Battery Technology Corporation’s (OTCMKTS: ABML) 15.8Mt LCE Tonopah Flats deposit4 and American Lithium (TSX.V: LI) 9.79Mt LCE TLC Lithium Project5.
Astute has completed substantial surface sampling campaigns at Red Mountain, which indicate widespread lithium anomalism in soils and confirmed lithium mineralisation in bedrock with some exceptional grades of up to 4,150ppm Li2,8 (Figure 3).
A total of 13 RC and diamond drill holes have been drilled at the project for a combined 1,944m, prior to this current drilling program. These campaigns were highly successful, intersecting strong lithium mineralisation in every hole9.
Scoping leachability testwork on mineralised material from Red Mountain indicates high leachability of lithium of up to 98%, varying with temperature, acid strength and leaching duration, and proof of concept beneficiation test-work has indicated the potential to upgrade the Red Mountain mineralisation10,11.
Figure 1. RMDD003 interpretative cross-section, lithium geochemistry and (25-35m off-section) rock chip samples
Results
Hole RMDD003 successfully intersected three zones of lithium mineralised clay-bearing mudstones and sandstone, separated by narrow zones of unmineralised rocks (Figure 1). The intersections are as follows:
- 13.8m @ 1,330ppm Li / 0.71% LCE from 39.6m to 53.4m;
- 32.4m @ 3,260ppm Li / 1.74% LCE from 57.2m to 89.6m; and
- 23.3m @ 1,610ppm Li / 0.86% LCE from 94.4m to End-of-hole (117.7m).
The best grades were developed in the most clay-rich zones (Figure 2). An internal very high-grade zone of 8.6m returned a grade of 5,060ppm Li, with a maximum single sample grade of 5,660ppm Li from 69.2-70.7m (227-232ft), which is the drill sample with the highest lithium grade achieved to date at the project.
Click here for the full ASX Release
This article includes content from Astute Metals NL, 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.