Auric Mining Launches Extensive Gold Milling Campaign at Greenfields Mill
AWJ (AWJ) Share Update November 2024 Thursday 28th
Auric Mining Commences Major Gold Milling Campaign
Auric Mining Limited (ASX: AWJ) has announced the commencement of a significant gold milling campaign at the Greenfields Mill in Coolgardie, marking a pivotal moment in their 2024 operations.
Instant Summary:
- 142,000-tonne milling campaign started at Greenfields Mill, Coolgardie.
- Campaign expected to last approximately 7 weeks.
- Over 53,000 tonnes at FMR Mill prior to processing.
- 85,000 tonnes ready for haulage at Jeffreys Find.
- First gold sales anticipated soon.
- Cash distributions expected in December 2024.
Campaign Overview
Auric Mining Limited has commenced a major gold milling campaign at the Greenfields Mill, located in Coolgardie. The campaign, which began on 28 November 2024, involves processing 142,000 tonnes of high-grade ore from the Jeffreys Find Gold Mine. This operation is expected to run for approximately 7 weeks, concluding by the end of January 2025.
The milling campaign is a collaborative effort between Auric Mining and their joint venture partner, BML Ventures Pty Ltd. BML is responsible for mining, haulage, and milling operations, ensuring that the ore reaches the mill efficiently. Prior to the start of milling, over 53,000 tonnes of ore were already positioned at the FMR Mill, with an additional 85,000 tonnes ready for transport from the Jeffreys Find site.
Gold Production and Sales
During the campaign, gold pours will occur weekly at the Greenfields Mill. The refined gold will be sold at The Perth Mint, with the first sales expected imminently. This is a crucial phase for Auric Mining, as it promises to deliver the highest number of gold ounces for the year.
The joint venture aims to process a total of 300,000 tonnes of ore from Stage Two of the project. Additionally, BML has secured a contract with the Three Mile Hill Plant to process up to 120,000 tonnes, bringing the total expected output to over 420,000 tonnes by Q1 2025.
Financial Implications
The financial structure of the joint venture allows for cash disbursements to Auric Mining after the sale of gold. BML covers all operational costs, and the surplus cash is split equally between the partners. Auric anticipates receiving cash distributions starting in December 2024, with further payments extending into 2025.
The commencement of this milling campaign is likely to have a positive impact on Auric Mining's stock, as it signals increased production and potential revenue growth. The timing aligns with favorable gold prices, enhancing the financial prospects for Auric. Investors may view this as a strategic move to capitalize on current market conditions.
Investor Reaction:
Analysts are expected to react positively to the announcement, given the scale of the operation and the anticipated financial benefits. The efficient management of resources and strategic timing of gold sales are likely to bolster investor confidence in Auric Mining's capabilities.
Conclusion:
As Auric Mining embarks on this ambitious milling campaign, investors should monitor the progress and outcomes closely. The company's ability to execute this plan effectively will be crucial in maintaining and potentially enhancing shareholder value. Investors are encouraged to consider the long-term potential of Auric's strategic initiatives.