Auric locks in crucial Kalgoorlie toll treatment deal with Black Cat
With mill space in the greater Kalgoorlie region reportedly tighter than a drum, the deal locks in crucial production for Auric, positioning the company to cash in a quick 6100 ounces in a soaring gold price environment.
Auric forecasts the ore will yield about 6100 recovered ounces of gold at a grade of 1.8 grams per tonne (g/t). Based on the current gold price, still hovering above $5000 an ounce and up more than 30 per cent this year alone, the potential gross revenue would exceed $28 million for the $30 million market-cap company.
The agreement marks one of the company's most significant steps and the final piece of the puzzle for Auric's Munda pit, where mining operations are already in full swing following a recent first blast and the start of overburden removal.
The company expects to extract 125,000t of ore grading a handy 1.8g/t gold, for a conservatively calculated 6100 ounces after recovery at Munda.
'This toll milling agreement gives us a commercial home for our Munda ore and paves the way to realise significant cash flow in the very near term.'
Auric Mining managing director Mark English
Processing is set to kick off in September at Black Cat's 1.2-million-tonne-per-annum Lakewood facility, about 100 kilometres up the road from the project, with the pit and all ore expected to be processed by February next year.
The deal is a strategic triumph for the company in the desert mining region, where mill capacity is scarcer than water. By locking in Lakewood's processing power, Auric sidesteps a critical bottleneck, ensuring its gold hits the market without delay to capitalise on the $5000-plus per ounce Australian gold price.
Auric Mining managing director Mark English said: 'T his toll milling agreement gives us a commercial home for our Munda ore and paves the way to realise significant cash flow in the very near term… Having a home for the Munda ore will enable us to monetise all the ounces from the starter pit.'
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