Auric to Process 125,000 Tonnes of Munda Ore at Lakewood Mill Starting October
Auric Mining has finalized a crucial toll milling and ore purchase agreement with Black Cat Syndicate, enabling processing of up to 125,000 tonnes of ore from its Munda Starter Pit. This milestone sets the stage for gold production commencing in October 2025 and expected cash flow in the final quarter of the year.
- Toll milling and ore purchase agreement executed with Black Cat Syndicate
- Up to 125,000 tonnes of Munda Starter Pit ore to be processed at Lakewood Mill
- Milling scheduled to begin October 2025 with up to three campaigns
- Projected production of approximately 6,100 ounces of gold after recovery
- Completion of Starter Pit mining expected by November 2025, with proceeds by February 2026
A Critical Processing Partnership
Auric Mining Limited has taken a decisive step forward in its Munda Gold Mine development by signing a toll milling and ore purchase agreement with Black Cat Syndicate Ltd. This agreement, executed on 4 July 2025, allows Auric to process up to 125,000 tonnes of ore from its Starter Pit at Black Cat’s Lakewood Mill near Kalgoorlie, Western Australia.
The arrangement is a pivotal milestone for Auric, as it effectively removes a major bottleneck in the mining and processing chain. With mining already underway following the first blast at Munda, the ability to send ore to a nearby, established mill means Auric can now confidently plan to monetize the gold contained within the Starter Pit.
Production and Financial Outlook
The Starter Pit is expected to yield approximately 125,000 tonnes of ore at an estimated grade of 1.8 grams per tonne, translating to around 6,100 ounces of recoverable gold. Mining operations are anticipated to conclude by October or November 2025, with milling campaigns commencing in October and potentially continuing through to January 2026.
Managing Director Mark English highlighted the significance of the deal, noting that it completes the essential framework to finish mining, processing, and selling the gold from the Starter Pit. Auric expects substantial cash inflows in the fourth quarter of 2025, with final proceeds anticipated by the end of February 2026.
Strategic Implications and Next Steps
Beyond the immediate benefits, this agreement positions Auric well for the next phase of its Munda project. Once Starter Pit operations are complete, the company plans to advance detailed planning and scoping studies for the larger Munda Main Pit, targeting work commencement around the second quarter of 2026.
The partnership with Black Cat is also notable for its mutual benefits, providing Black Cat with additional mill throughput while giving Auric a reliable processing solution close to its mining operations. This synergy could set a precedent for future collaborations in the region.
While the announcement is optimistic, it carries the usual forward-looking caveats. Market watchers will be keen to see how Auric manages operational execution and whether the projected gold recoveries and cash flows materialize as planned.
Bottom Line?
Auric’s toll milling deal unlocks near-term gold production and cash flow, setting a foundation for Munda’s next growth phase.
Questions in the middle?
- What are the detailed financial terms and margins of the toll milling agreement with Black Cat?
- How will Auric manage operational risks to meet the tight milling schedule starting October 2025?
- What are the timelines and capital requirements for advancing the Munda Main Pit development?
