Auric Mining Limited Announces Updated Resource Estimates for Munda Gold Deposit
AWJ (AWJ) Share Update December 2024 Monday 9th
Auric Mining Updates Munda Gold Deposit Resource Estimates
Auric Mining Limited (ASX: AWJ) has released an updated estimate of gold resources for its Munda Gold Deposit, marking a significant step forward in the company's mining plans.
Instant Summary:
- Updated resource estimate at 3.65Mt at 1.23g/t for 145,000 oz Au.
- Incorporates new data from 10m x 10m spaced drilling.
- Resource model to optimize starter pit mining near surface gold mineralization.
- Estimates reported within an optimal pit shell at $AUD3,200/oz.
Resource Update Details
Auric Mining Limited has announced a significant update in the resource estimates for the Munda Gold Deposit. The new estimates, conducted by Matrix Resource Consultants Pty Ltd, indicate a total of 3.65 million tonnes at a grade of 1.23 grams per tonne, amounting to 145,000 ounces of gold. These figures are based on a 0.5g/t cut-off grade and incorporate data from recent infill drilling conducted on a 10m x 10m grid.
The updated model aims to optimize a starter pit mining operation, focusing on near-surface gold mineralization. The estimates are constrained within an optimal pit shell, calculated at a gold price of $AUD3,200 per ounce, reflecting reasonable prospects for economic extraction.
Comparison with Previous Estimates
Compared to the previous estimates released in January 2022, the current figures show a slight reduction in grade, attributed to a more conservative treatment of high-grade outliers. The updated estimates reflect a more precise understanding of the deposit's geology, aided by the additional drilling data.
Geological and Drilling Insights
The Munda Gold Project is located on mining lease M15/87, approximately 5km west of Widgiemooltha. It has undergone several phases of exploration since the 1960s, with the most recent drilling by Auric involving 361 shallow infill holes. The drilling database includes information from various companies over the years, with Auric's recent efforts significantly enhancing the understanding of the deposit.
Gold mineralization at Munda is hosted predominantly within basalts, with mineralization controlled by structural intersections. The recent drilling has confirmed the presence of high-grade gold zones against a backdrop of lower-grade mineralization, necessitating a cautious approach in resource modeling.
The updated resource estimates for the Munda Gold Deposit are likely to have a positive impact on Auric Mining's stock, as they indicate a clear path towards initiating mining operations. The focus on optimizing a starter pit suggests a strategic approach to resource extraction, which could enhance investor confidence in the company's operational capabilities.
Investor Reaction:
Analysts are likely to view the updated estimates favorably, as they demonstrate Auric Mining's commitment to advancing its projects with detailed geological data and strategic planning. The conservative approach to high-grade outliers may be seen as a prudent measure to ensure reliable resource estimates.
Conclusion:
Investors should keep an eye on Auric Mining's progress as it moves towards starting mining operations at Munda. The updated resource estimates provide a solid foundation for future developments, and the company's strategic planning could yield positive results for stakeholders.