The Conversation (0)
Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to present the range of outcomes of a Scoping Study for open-pit mining and third-party toll treatment of the Munda gold deposit, (Munda or the Project) which is located 98km south of Kalgoorlie in Western Australia.
The positive results of this Scoping Study justify further work to refine material inputs and enhance project economics for the Munda gold deposit.
Important Note
The Scoping Study referred to in this announcement has been undertaken to determine the viability of open pit mining and third-party toll treatment of the Munda gold deposit within the Widgiemooltha Gold Project. It is a preliminary technical and economic study of the potential viability of the Project. It is based on low level technical and economic assessments that are not sufficient to support estimation of ore reserves. Further evaluation work and appropriate studies are required before Auric will be in a position to estimate any ore reserves or to provide any assurance of an economic development case.
The Scoping Study is based on the material assumptions outlined below. These include the availability of funding. While Auric considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.
To achieve the outcomes indicated in this study funding of the order of $4.7 million to $9.7 million will likely be required. Investors should note that there is no certainty that Auric will be able to raise working capital when needed. It is also possible working capital may only be available on terms that may be dilutive to or otherwise affect the value of Auric’s shares.
It is also possible that Auric could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the Project. If it does, this could materially reduce Auric’s proportionate ownership of the Project.
Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.
Highlights
- A single third-party processing plant operating under a toll treatment agreement was considered. This processing plant is located approximately 82km from Munda. A range of outcomes were defined based on gold price.
- At gold prices from AUD$2,400 to AUD$2,800/oz, the Production Target for the Project ranges from approximately:
- 1.67Mt at 2.2g/t producing 112.0koz gold, to
- 2.18Mt at 1.9g/t producing 129.1koz gold.
- The Production Target generates an undiscounted accumulated cash surplus after payment of all working capital costs, but excluding pre-mining capital requirements, of approximately $54.7M to $101.4M.
- Mining is contemplated over an approximately 3-year period (13 calendar quarters).
- Pre-mining capital and start-up costs are estimated to be approximately $0.8M to $1.7M.
- Working capital requirements of approximately $3.9M to $8.1M were estimated based on a Stage 1 starter pit design which would have a mine life of less than 3 months.
- Sensitivity of the Base Case scenario to gold price was assessed. Results suggest that project economics are robust for a broad range of gold prices.
Auric’s Managing Director Mark English commented:
“The Scoping Study highlights the value and viability of the Munda Gold Deposit.
We now have a roadmap to plan gold mining at Munda. There is still more to be done, but this Scoping Study provides us with a high level of confidence to proceed to mining.
The independent Scoping Study highlights significant accumulated cashflow for the Munda Project. The adopted base case scenario at AUD $2,600 per ounce details mining approximately 1,716Mt to generate an accumulated undiscounted cashflow surplus of $76.9 million, a terrific outcome for Auric. We will continue the planning and development requirements quickly.”
Figure 1. Munda Gold Deposit Location Plan.
Executive Summary
Auric commissioned Minecomp Pty Ltd, a Kalgoorlie based consulting firm with extensive experience evaluating mining projects in the Eastern Goldfields, to undertake a Scoping Study evaluating potential open pit mining at Munda and ore processing via toll treatment at an existing plant.
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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.
