Auric Mining Limited (ASX: AWJ) has obtained a positive range of outcomes from a Scoping Study for open-pit mining and third-party toll treatment of the Munda gold deposit 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.
• 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 A$2,400 to A$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 three-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 three 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.
The Scoping Study highlights the value and viability of the Munda Gold Deposit.
“We now have a roadmap to plan gold mining at Munda,” Managing Director, Mark English, said.
“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 A$2,600 per ounce details mining approximately 1,716Mt to generate an accumulated undiscounted cashflow surplus of $76.9M, a terrific outcome for Auric. We will continue the planning and development requirements quickly.”
For further information please visit: https://www.auricmining.com.au/