Auric set for Xmas cash as 2nd mill signs on for toll treating

Auric Mining is set to bring in another grab bag of cash before Xmas by extending the existing toll-treating operation at its Goldfields-based Jeffrey’s Find project near Norseman to the nearby Three Mile Hill mill owned by Focus Minerals.

Three Mile Hill is the second mill in the vicinity to sign on for Auric’s toll treating campaign with another 142000 tonnes set to go through the Greenfields mill from the end of November.

With the gold price having recently punched through the A$4,000 an ounce mark again, the company says it is now economically viable to process more ore, including some of the lower grade ore that it initially thought it had to leave behind.

The company’s JV partner, and on-site miner BML Ventures from Kalgoorlie expects a minimum 40,000 tonnes will be milled in the first campaign although Focus says it could potentially punch through 75,000 tonnes if there are no delays . The plant has the capacity to process approximately 4,000 tonnes of ore daily.

BML has already delivered around 25,000 tonnes to Three Mile Hill, while approximately 50,000 tonnes are on the ROM Pad at Jeffreys Find awaiting haulage.

Auric says it should manage to put 420,000 tonnes of ore through both mills in total for stage two of the project when milling is concluded.

We are in a fast forward mode to complete Jeffreys Find Gold Mine.

Auric says it expects gold to be poured at Three Mile Hill within 7 days and it will divide up the spoils with BML in December.

Auric Mining managing director Mark English said:“We’re off and running at Three Mile Hill. If BML can feed the mill then the door is open to process 75,000 tonnes in this first campaign at Three Mile Hill. Haulage has been slowed down by heavy rain. A great way to start our relationship with Focus Minerals Ltd. The mill has confirmed there will be weekly gold pours for the campaign, with the first pour shortly. There are approximately 50,000 tonnes of ore on the ROM Pad at Jeffreys Find ready to haul to Three Mile Hill Plant to fulfill the initial parcel.”

Under the terms of Auric’s JV agreement with BML, the latter incurs and pays all mining, haulage, milling costs and all related expenses. After sale of the gold, BML subtracts all direct costs before splitting the surplus cash proceeds on a 50:50 basis with Auric.

Today’s announcement, which follows on the heels of some strong drill results served up at Auric’s Spargoville project near Kambalda in WA last week, found favour with punters with the share price up around 4 per cent ($0.28) heading into the close.

Meanwhile, the best numbers from the new program at the Spargoville project were 7m grading 4.88 grams per tonne (g/t) gold from 45m, with a 3-metre section going 10.36g/t from 48m. Other notable hits in the latest campaign which also married up with the supergene areas at the prospect include 2m grading 10.69g/t gold from 81m, 1m running 12.1g/t from 132m and 13m grading 1.35g/t from 58m.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au