Auric Mining has made a significant stride in its operations by finalizing a crucial toll treatment and ore purchase agreement with Black Cat Syndicate. This partnership guarantees the processing of 125,000 tonnes of gold ore from Auric’s Munda starter pit in Western Australia’s Southern Goldfields at Black Cat’s Lakewood Mill in Kalgoorlie.
The deal comes at a pivotal time for Auric as mill space in the greater Kalgoorlie region is reported to be in high demand. By securing this agreement, Auric ensures vital production continuity, allowing the company to capitalize on the lucrative opportunities presented by the current soaring gold prices.
Mark English, the managing director of Auric Mining, expressed his enthusiasm about the agreement, stating,
“This toll milling agreement gives us a commercial home for our Munda ore and paves the way to realize significant cash flow in the very near term.”
With an estimated yield of about 6100 recovered ounces of gold at a grade of 1.8 grams per tonne (g/t), Auric stands to generate potential gross revenue exceeding $28 million based on the current robust gold price trend.
The commencement of processing is scheduled for September at Black Cat’s Lakewood facility, conveniently located approximately 100 kilometers from Auric’s project site. Processing all ore from the pit is expected to conclude by February next year. This strategic move not only secures processing capabilities for Auric but also mitigates potential bottlenecks that could delay market entry amid rising gold prices.
Furthermore, this development underscores Auric’s commitment to optimizing its mining operations and capitalizing on prevailing market conditions. The company’s forward-thinking approach positions it favorably within the competitive landscape of Australian gold mining.
Looking ahead, with additional campaigns planned following the initial phase, Auric aims to maximize its output from Munda and leverage its success to further advance its mining portfolio. The company’s recent asset acquisition from WIN Metals solidifies its operational control over essential resources and services critical for sustainable mining practices.
English highlighted that these strategic moves align with Auric’s growth trajectory as it aims to establish itself as a prominent player in Australia’s gold mining sector. With a clear focus on operational efficiency and financial stability, Auric is poised for substantial growth driven by prudent decision-making and strategic partnerships like that with Black Cat Syndicate.
In conclusion, Aurora Mining’s collaboration with Black Cat Syndicate marks a significant milestone in its journey towards becoming a self-sustained gold mining operator. By securing key partnerships and optimizing its operational capabilities, Aurora is well-positioned to navigate challenges while maximizing opportunities presented by favorable market conditions.
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