Auric Mining has kicked off the year with a successful first gold pour from its second toll-treatment campaign at the Munda gold mine near Kalgoorlie, delivering 1,147 ounces of gold worth approximately $8 million. The material was processed at Black Cat Syndicate's Lakewood Mill, 80km north of Kalgoorlie.
The company is moving quickly to capitalize on strong gold prices, with management targeting the next gold pour next week and forecasting at least three more pours from this campaign. The full treatment of 125,000 tonnes across both campaigns since October is expected to be completed by month's end.
The toll-treatment arrangement with Black Cat allows Auric to generate cash from the Munda starter pit without the cost of building a full-scale plant. The first campaign delivered 2,718 ounces before Christmas, and the second is forecast to add 3,745 ounces, bringing the total to 6,400 ounces – worth over $45 million at current gold prices.
This far exceeds original projections based on a gold price of $3,500 per ounce. With spot prices now around $7,100 per ounce and all-in sustaining costs of about $2,635 per ounce, net cash could reach $28 million, significantly higher than the initial $5.3 million free cash flow estimate.
The company plans to use data from the starter pit to de-risk expansion toward the main Munda deposit, which contains 145,000 ounces of gold grading 1.23 grams per tonne. A 2023 scoping study by Minecomp, based on a $2,600 gold price, outlined a 1.716-million-tonne operation at 2.2 g/t capable of generating $76.9 million in undiscounted surplus cash.
Auric believes the starter pit has proven the viability of the Munda system, acting as a commercial pilot run. With processing ongoing and a buoyant gold market, the company is positioning for a strong run through 2026 and an improved balance sheet.
