Auric Mining Unveils Positive Scoping Study for Burbanks Processing Restart and Munda Gold Mining in WA Goldfields

Burbanks Processing Facility Recommissioning as Strategic Asset

Auric Mining's plan to recommission the Burbanks processing plant secures vital gold treatment infrastructure in a region with constrained processing capacity. Situated roughly 87 kilometres from the Munda deposit, Burbanks offers control over a facility designed for a nominal throughput of 600,000 tonnes per annum. The plant has been engineered to handle all material from Munda over a 56-month operation, with scalability options to upgrade processing capacity to 1.2 million tonnes per annum through straightforward modifications.

The capital cost for re-establishing Burbanks at 600,000 tonnes per annum is estimated at $94.3 million, completed to prefeasibility study accuracy of ±15% by Interquip Pty Ltd, an engineering, procurement, and construction management firm. Owner’s costs are separately estimated at $35.8 million with ±25% accuracy by Auric Mining using supplier and contractor quotes. This dual estimation approach reflects the extensive engineering completed on the Burbanks infrastructure for the integrated project.

Munda Gold Deposit Mining Strategy and Resource Profile

The mining plan for Munda focuses on a single large open pit targeting 2.77 million tonnes of mineralised material at 1.75 g/t gold, containing 155,844 ounces. The pit is designed to recover 141,254 ounces at an 89.5% recovery rate, including 76,000 tonnes of existing stockpiles grading 0.81 g/t for 1,980 ounces. The mineral resource is predominantly robust with 93.1% classified as Indicated and the remainder as Inferred. Mining is planned over 32 months using conventional owner-operated equipment, with an overall strip ratio of 11:1.

Capital costs for the Munda open pit are estimated at $7.5 million with ±25% accuracy, covering office and camp upgrades, clearing, and topsoil stockpiling. Recent mining activities at the Munda Starter Pit and existing infrastructure bolster confidence in these estimates. Additional studies are ongoing, but prior mining experience enhances the reliability of current capital projections.

Starter Pit Operation Validates Munda Grade and Recovery

Auric Mining’s Starter Pit operation at Munda extracted approximately 202,000 tonnes at 1.84 g/t gold. Of this, 126,000 tonnes at 2.46 g/t were processed at third-party plants. Gold from the Starter Pit sold at an average price of A$7,178 per ounce. These results exceeded expectations and informed updates to the mineral resource model and mining parameters used in open pit designs.

This outperformance provides strong confidence in the integrated project’s profitability assumptions. The real mining data on grade, recovery, and processing have been incorporated into the scoping study, reducing technical risks compared to reliance on historical or purely geological data.

Capital and Working Capital Requirements

The integrated Burbanks and Munda project requires peak funding estimated at $145 million. Working capital needs are projected at $17.4 million, covering four months of mining and haulage to build processing stockpiles before mill startup, plus commissioning and ramp-up costs at Burbanks. This is partially offset by expected gold revenue of about $9.3 million during commissioning from initial processing.

Capital estimates reflect different accuracy levels: Burbanks plant costs at prefeasibility level, and Munda open pit and owner’s costs at scoping study level. The company has not disclosed the timing or source of funding required to start the project. Investors should note this uncertainty.

Robust Project Economics at A$5,750/oz Gold

Financial modeling based on a gold price of A$5,750 per ounce shows the project generating $812 million in revenue with an all-in sustaining cost of $2,843 per ounce. The payback period is estimated at 2.3 years, with total EBITDA projected at $437 million and average annual EBITDA around $94 million. This cash flow is intended to support future feed source expansion through exploration and acquisitions.

Sensitivity analyses indicate strong economic resilience across a range of gold prices and cost scenarios, suggesting viability even if costs rise or gold prices decline from the base case.

Strategic Positioning in WA Goldfields Processing Market

Auric Mining’s control of the Burbanks facility strategically positions it within the Western Australia Goldfields, a historically prolific gold region currently facing processing capacity constraints. The Widgiemooltha Gold Project, including Burbanks and Munda, lies about 87 kilometres from Coolgardie. The study highlights regional processing limitations as a competitive advantage, with Burbanks enabling value extraction from Munda and serving as a platform for future organic growth or acquisitions.

Once operational, Burbanks could process additional feed beyond Munda, sourced from Auric’s exploration or third-party operators. This infrastructure control offers operational leverage supporting the project's long-term sustainability. Investors should monitor exploration updates and any toll processing or feed acquisition agreements.

Competent Person Statement and Mineral Resource Basis

The scoping study is founded on a Mineral Resource Estimate prepared by a Competent Person under the JORC 2012 code, complying with ASX listing rules. The production target includes approximately 93% Indicated and 7% Inferred Mineral Resources over the first 56 months. The company cautions that Inferred Resources carry low geological confidence and that further exploration is needed to upgrade resources or confirm production targets.

This preliminary technical and economic assessment does not support ore reserve estimation. Further evaluation and studies are required before confirming economic viability. The study’s assumptions on funding and other factors carry uncertainty, and outcomes are not guaranteed. Full details and the Competent Person statement are available in the company’s JORC disclosures.

Capital Raising and Funding Risks

Auric Mining will need to secure capital to advance the project. There is no assurance that funding will be available on acceptable terms, and capital raising could dilute shareholder value. The peak $145 million funding requirement is substantial and must be met prior to or during early project stages.

The company also notes potential alternative strategies such as sale, partial sale, or joint venture of the project, which could reduce Auric’s ownership. Shareholders should watch for capital raising announcements and strategic transaction updates. The company advises against making investment decisions based solely on the scoping study due to inherent uncertainties.

Technical Accuracy and Development Outlook

Capital cost estimates vary by project component and study stage. The Burbanks plant estimate of $94.3 million has ±15% accuracy at prefeasibility level, reflecting near-complete engineering by Interquip Pty Ltd. Munda open pit and owner’s costs of $7.5 million and $35.8 million respectively have ±25% accuracy at scoping study level, pending further technical and permitting work.

The integrated study is classified as a Scoping Study, highlighting the need for additional technical, permitting, and development work at Munda. Burbanks is closer to construction readiness. Upcoming milestones include further technical studies, permitting progress, and capital raising announcements. Investors should track updates on engineering appointments and regulatory approvals for both Burbanks and Munda.