BML expects to receive an additional $3m to $4m in cash after the remaining gold is sold.

Wedoany.com Report-Feb 25, Auric Mining has completed gold sales exceeding $105 million from its stage one and stage two operations at the Jeffreys Find Gold Mine, situated near Norseman, Western Australia. The mine operates under a joint venture with BML Ventures, based in Kalgoorlie.

Stage two mining yielded 17,901 ounces of gold, generating $72.04 million so far, while stage one in 2023 produced $29.28 million. Processing of stage two gold occurred at various sites, including the Greenfields Mill and the Three Mile Hill Plant in Coolgardie, spanning 2024 and extending into early 2025. The peak gold price reached A$4,625 ($2,943) per ounce, with an average of A$4,024 per ounce.

Auric Mining managing director Mark English stated: “The first ore was shovelled at Jeffreys Find in May 2023. In just a couple of years this short-life mine has now generated more than $100m in gold sales for the Project. Before starting we estimated a gold price of A$2,600 an ounce. Who could have envisaged that we would be selling gold at more than A$4,600 an ounce. By any measure it’s a brilliant result. However, not all the money is in the bank yet. We are expecting millions more in surplus cash to be received. We are expecting millions more in cash over the next few months.”

Around 60,000 tonnes of ore are stockpiled on the run-of-mine Pad at Jeffreys Find. BML is nearing the completion of talks to process this ore at a local toll mill in the coming months. Auric Mining anticipates an additional $3 million to $4 million in cash from these sales.

Per the joint venture terms, BML handles all mining, transport, and milling expenses. After gold sales, direct costs are subtracted, and the remaining proceeds are divided equally between the partners. English noted: “Our partner BML is negotiating a toll milling agreement for a parcel of up to 60,000t, which is currently on the ROM Pad at the mine site. When everything is completed, we will get the final picture on just how successful the Jeffreys Find Gold Mine has been. Our JV agreement with BML Ventures stipulates that only after all the gold has been sold and all costs have been paid is the final surplus cash distribution paid. We’ve just received a further $1.5m as an interim payment from BML which brings us to $8.1m in total for stage two payments.”

BML projects that stage two will deliver a cash surplus of $11 million to $12 million for Auric Mining. Last December, Auric Mining entered a conditional deal to purchase the Burbanks gold processing facility near Coolgardie, Western Australia, signaling further expansion plans.