Auric Mining Smashes Budget with Golden Finish at WA Mine
Mining budgets are often set as targets, but rarely are they exceeded by such a significant margin. Auric Mining has concluded operations at its Munda starter pit with a final gold tally of 8,886 ounces, a result that landed an impressive 46 per cent above the original budget of 6,100 ounces. This achievement delivered a series of positive surprises throughout the mining process, showcasing the project's potential.
Final Results and Campaign Performance
The completion of the project was marked by the gold in circuit (GIC) calculation from the fourth and final outturn of the second campaign, which added an additional 411 ounces. Campaign Two, which ran from late January to mid-February, processed 68,154 tonnes of ore at Black Cat Syndicate's Lakewood Mill near Kalgoorlie. It recovered 6,168 ounces at a head grade of 3.18 grams per tonne (g/t) gold, indicating a notable step-up in quality.
The reason for this grade improvement is significant. Campaign Two focused on the bottom half of the starter pit, where deeper material revealed higher gold grades. In gold mining, encountering better grades with depth sparks geological excitement, as it suggests the deposit may be improving rather than diminishing below the pit floor.
Outperformance Across Key Metrics
Across both campaigns combined, the reconciled average head grade came in at 2.46g/t against a predicted 1.80g/t, representing a stunning 37 per cent outperformance on grade alone. Additionally, mill recovery of 89.5 per cent exceeded the predicted 83.3 per cent. This means Auric not only had better ore than expected but also extracted more gold from it than forecasted, creating an impressive double win that significantly boosted the final ounce count.
There is also an additional 18,000 tonnes of starter pit ore still on the ROM pad at Munda, estimated to contain another 935 ounces once processed. When added to the 8,886 ounces already banked, the starter pit could deliver 61 per cent more ounces than the original reserve estimate—a reconciliation result that any gold miner would celebrate.
Historical Context and Strategic Execution
Auric's Munda gold mine is located near Widgiemooltha and Kambalda in Western Australia. It is classified as a Kambalda-style deposit, where gold and nickel occur together but in separate zones. High-grade gold is hosted in mafic and ultramafic rocks, often appearing with subtle albite and quartz alteration.
The Munda story dates back to the 1960s, when companies like Anaconda and CRA first identified the deposit's potential. Western Mining Corporation conducted extensive exploration work, followed by Resolute, which operated a small pit in the 1990s before retreating due to low gold prices. The site remained largely dormant until Auric stepped in four years ago, quickly confirming a JORC inferred resource and achieving first gold production by late last year. This swift and decisive execution has captured investor interest, with the starter pit results suggesting the best of the Munda story is yet to come.
Financial and Future Implications
Mark English, managing director of Auric Mining, commented on the success, stating, "It's been a truly stellar finish for us now we have the final Gold in Circuit number. With production being 46% above budget, it puts a golden bow on our Munda Starter Pit results." Notably, Auric achieved this without owning a mill, using a toll-treating arrangement with Black Cat that proved cost-effective and avoided the capital burden of building processing infrastructure.
The cash generated from both campaigns has left Auric with $43 million in cash, bullion, and listed investments, excluding a GST refund. This financial war chest positions the company strongly for future endeavors. The data collected from the starter pit on grade distribution, mining behavior, and processing characteristics provides an invaluable real-world dataset for planning the Munda Main Pit.
The company has indicated that the deposit's resource will be remodelled to account for localised high-grade zones that were challenging to capture in earlier estimates. These zones have contributed more gold than previously understood, paving the way for a larger pit informed by better data. The Munda starter pit story exemplifies conservative budgeting, consistent outperformance, real cash generation, and a confident move into the next phase with both financial and geological advantages.
