Source : THE AGE NEWS
Auric Mining has pulled the trigger on another gold acquisition near Coolgardie, snapping up the 102,000-ounce Union Jack gold project in a deal that boosts its global resource inventory by a hefty 51 per cent to 301,000 ounces and strengthens its strategy of becoming a fully integrated gold producer.
The company has signed binding agreements to buy the project for an upfront $6.6 million in cash and $3 million in Auric shares, with further milestone payments tied to future resource growth. The deal hands Auric control of an initial inferred resource of 3.12 million tonnes grading 1.02 grams per tonne (g/t) gold for 102,000 ounces.
Importantly, Union Jack sits just 15 kilometres by road from Auric’s Burbanks processing plant, putting it firmly within trucking distance and dovetailing neatly with the company’s strategy of snapping up mineable ounces that could ultimately feed its planned processing hub.
The project has all the hallmarks of a classic Goldfields opportunity, with a raft of historic mine shafts and shallow workings, leaving a solid 102,000 ounces at surface with plenty of potential for modern exploration to delve deep. The company says its current resource is based on just 241 drill holes and, importantly, remains open along strike and at depth.
‘The Union Jack Project dovetails perfectly with our strategy of acquiring near-term gold production assets within trucking distance.’
Auric Mining managing director Mark English
Past drilling has already delivered some eye-catching hits, including 17m at 4.57g/t gold, 15m at 4.22g/t and 10m at 4.72g/t from shallow depths. Deeper holes have also hinted at underground potential, returning results such as 16m grading 4.34g/t from 184m.
Auric plans to waste little time, with a substantial drilling campaign set to begin following settlement as it works to both infill and expand the resource ahead of fast-tracked mining studies.
Auric Mining managing director Mark English said: “The Union Jack Project dovetails perfectly with our strategy of acquiring near-term gold production assets within trucking distance of the Burbanks Mill. It’s so close we could almost wheelbarrow the gold! This is a material and compelling opportunity, and too good to pass up, adding substantially to the ounces we already control in the region.”
The company has a solid track record of turning projects into cash, having generated over $112 million in gold sales from its now-concluded Jeffreys Find mine and banking serious cash from the starter pit at its Munda gold project near Widgiemooltha.
At the centre of the plan sits the company’s wholly owned Burbanks processing plant near Coolgardie. Auric is currently evaluating refurbishment and expansion options that could lift throughput capacity from 180,000 tonnes per annum to as much as 500,000tpa, giving it greater control over its production pipeline and reducing reliance on third-party mills.
With Union Jack now in the fold, Auric is steadily assembling the ingredients of a genuine Goldfields production business. If upcoming drilling adds more ounces and converts resources into reserves, the company may not have to wait long before ore from another mine heads down the road to Burbanks.
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