Auric Mining (ASX:AWJ) is accelerating its push to become a fully integrated gold producer with a major deal in Western Australia.
On Monday (August 25), the company locked in a AU$4.4 million purchase of the Burbanks Mill, located 15 kilometres south of Coolgardie and near its Munda gold project. Idle since 2019, the facility comes equipped with crushing, grinding and carbon-in-leach infrastructure, giving Auric a clear path toward in-house processing.
“A major missing piece for us has always been a mill … We are delighted to now be on a clear path to purchasing this facility, which we expect to be an important piece of our longer-term future,” said Managing Director Mark English.
He added that following further work completion, the mill will assist in Auric’s increasing of operational flexibility, reduction of reliance of third-party mill arrangements and maximising benefits from future mining operations.
A day after the Burbanks mill update, Auric also published news on the progress of its acquisition of Lindsay’s gold project in Kalgoorlie, which was first announced in February.
Lindsay’s covers 33 square kilometres near Kalgoorlie and covers eight tenements and three granted mining leases.
According to the company, Lindsay’s was never completed and only 25 percent of the planned ore was extracted in 2013, the year the mine closed following a gold price drop to AU$1,295 per ounce.
The last recorded mine grade was 1.93 grams per tonne gold, while production was at 6,153 ounces.
The acquisition includes the Parrot Feathers open-pit gold mine from private companies Top Global Mining and NBC Mining, which Auric intends to commence mining from in 2025.
Auric and vendor executives met on August 25 to plan a forfeiture strategy for the key lease, with the Wardens Court hearing rescheduled from August 22 to September 5.
For the Burbanks mill purchase, settlement and completion are expected sometime in September.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
