Munda Gold Mine Starter Pit Underway

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.

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