Auric Mining (ASX:AWJ) moves into production at Munda, marking transformational milestone

Auric Mining has taken a decisive step forward, transitioning from an exploration-focused junior into an active gold producer, with mining now underway at the Munda Starter Pit in Western Australia.

Managing Director Mark English describes the development as a “transformational step” for the company, which is targeting a low-cost, five-month production campaign expected to yield 6,100 ounces of gold.

The initial operation at Munda represents a key test case for Auric’s production credentials and broader development strategy, with early results already validating the company’s shift from discovery to delivery.

A Clear Production Plan with Immediate Returns

Auric Mining is currently advancing its first phase of mining at the Munda Gold Project, aiming to extract 125,000 tonnes of ore at a grade of approximately 1.8 grams per tonne (g/t) of gold.

Over a five-month period, the Starter Pit is projected to produce around 6,100 ounces of gold—an important cash-generating step for the company and a springboard for further development at the site.

Mining operations have commenced in the weathered free-dig zone, with the first blast scheduled within two weeks.

English notes that this milestone will allow the company to access fresher, higher-grade material at depth, accelerating the build-up of ore stockpiles ahead of processing.

“This is the first major production step for Munda,” English said. “As we move into higher-grade zones, stockpiles will build quickly ahead of processing.”

Auric is executing the campaign with cost control in mind, targeting an all-in sustaining cost (AISC) of A$2,635 per ounce.

While higher than typical long-term targets for mid-tier producers, the AISC remains competitive in the context of a short-term, development-phase operation—particularly one that is entirely self-funded.

Fully Funded Through Prior Success

Unlike many early-stage miners reliant on equity raises or debt facilities, Auric has opted for a conservative and sustainable approach.

The Munda Starter Pit is fully funded from cash flows generated by the company’s successful campaign at the Jeffreys Find Gold Mine, reflecting Auric’s commitment to capital discipline.

“This approach avoids shareholder dilution and ensures financial flexibility,” English said. “The use of internally generated capital reflects our disciplined strategy. It enables us to move confidently through development phases without relying on external fundraising.”

Such a model not only conserves shareholder value but also sets a precedent for how Auric intends to advance its broader portfolio—through reinvestment of earnings and judicious capital management.

A Gateway to a Long-Term Production Profile

While the Starter Pit is limited in scale, it marks the beginning of a longer-term vision for Munda.

The project currently hosts an estimated total resource of 145,000 ounces of gold. According to English, plans are already being formulated for the development of the Munda Main Pit, with a targeted commencement date in 2026.

“This is not a one-off operation,” he said. “The Starter Pit is the entry point to a longer-term production strategy that will see Munda become a consistent gold producer over the next five years.”

Such continuity is key to Auric’s evolution from an explorer into a producer with predictable output and growing shareholder returns.

The company’s ability to deliver on this phased development plan will be closely watched by the market over the next 12 to 24 months.

Delivering Tangible Shareholder Value

For Auric’s shareholders, the commencement of mining at Munda marks a moment of tangible progress.

With ore now being stockpiled and a path to first revenue in sight, the company has clearly crossed an operational threshold.

“It’s a transformational step—from explorer to producer,” English said. “This moment validates our strategic decisions, demonstrates our ability to execute, and sets the foundation for long-term value creation.”

Indeed, the market often views the shift to first production as a de-risking event—proof that a company can move beyond exploration success and into operational performance.

Auric has achieved that with minimal dilution and a clear roadmap for future development.

Next Steps

With the Starter Pit now operational, Auric’s immediate focus will be on executing the first blast within the next fortnight to access deeper, higher-grade ore zones.

As mining progresses, the company expects to build ore stockpiles rapidly to support a continuous processing schedule.

Maintaining cost discipline remains a priority, with Auric targeting an AISC of A$2,635 per ounce.

In parallel, early planning and permitting work for the larger Munda Main Pit—slated to commence in 2026—will begin, laying the groundwork for a sustained production profile.

Auric’s strategy of phased development, self-funded growth, and strong cost awareness positions it well in a volatile gold market.

As gold prices remain elevated and investor appetite strengthens for near-term producers, the company appears well placed to capitalise on its momentum.

For now, the attention turns to execution: moving dirt, building stockpiles, and bringing revenue in the door—one truckload at a time.

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