Highlights

  • Auric Mining upgraded the Munda Gold Deposit resource by 32% to 192,000 oz Au after mining depletion adjustments.
  • Grade control drilling revealed multiple high-grade intercepts, including assays above 100 g/t gold.
  • ASX: AWJ shares rose over 3% as investors reacted to stronger-than-expected production reconciliation.

Shares of Auric Mining Limited (ASX:AWJ) attracted renewed investor interest following a significant upgrade to the Mineral Resource estimate at its Munda Gold Deposit in Western Australia. The stock rose approximately 3.39% to 0.30 AUD after the company reported a 32% increase in the in-situ resource, despite ongoing depletion from mining activities.

The update also highlighted stronger-than-expected production reconciliation from the Munda Starter Pit, reinforcing investor confidence in the deposit’s grade continuity and near-term development potential.

Munda Gold Deposit Resource Upgrade Explained

The updated Mineral Resource for the Munda Gold Deposit now stands at 4.20 million tonnes at 1.43 g/t for approximately 192,000 ounces of gold. When combined with stockpiled material, the total estimate rises to around 194,000 ounces at similar grade levels.

Importantly, this represents a 32% increase compared with the December 2024 estimate after adjusting for mining depletion of approximately 10,000 ounces. The upgrade is particularly notable because it occurred despite active extraction, indicating that new geological interpretation and grade control data materially improved confidence in the resource model.

The revision was completed by Matrix Resource Consultants, which incorporated updated mining data and revised assumptions around high-grade distribution within the orebody.

A key methodological change involved less conservative treatment of high-grade drill samples, combined with more selective mining assumptions. This adjustment reflects improved understanding of the deposit’s internal grade variability, which is a common characteristic in gold systems where coarse or nuggety distribution can influence early modelling outcomes.

Grade Control Drilling Reveals High-Grade Variability

One of the most significant aspects of the announcement was the detailed grade control drilling undertaken during mining operations. The drilling program, conducted on a tight 5 m by 5 m spacing, provided high-resolution data that significantly improved geological confidence.

Several intercepts returned exceptionally high grades, including results exceeding 100 g/t gold over multi-metre intervals. These high-grade zones sit within a broader background of lower-grade mineralisation, a geological feature that is increasingly recognised at Munda.

The company noted that such variability highlights the importance of dense grade control drilling in defining mineable ore blocks. Without this level of resolution, high-grade zones can be underrepresented or mischaracterised in broader resource models.

This combination of coarse grade distribution and localized high-grade shoots is often a key driver of reconciliation differences between modelled and actual production in gold mining operations.

Production Reconciliation Strengthens Confidence

Another key Factor influencing market sentiment was the strong reconciliation between modelled grades and actual production results from the Starter Pit.

Gold production from the initial mining phase reached approximately 8,886 ounces, compared with a budgeted 6,100 ounces. This represents a substantial uplift and suggests that the deposit may be more robust than early-stage modelling indicated.

In addition, a further ~2,900 ounces of gold have been stockpiled for future processing, providing additional near-term optionality for production planning.

The company also noted that production results were 6% higher in grade and 6% higher in contained ounces than grade control estimates at a 0.75 g/t cut-off. This level of reconciliation accuracy is often considered a positive indicator of geological consistency once mining is underway.

Resource Remains Open and Growth Potential Persists

Despite the upgrade, the Munda Gold Deposit remains open along strike and at depth, indicating that further resource growth is possible. This is particularly relevant for investors tracking expansion potential beyond the current mine plan.

Drill planning is already underway for both infill and extension targets, suggesting that the company intends to continue refining and potentially expanding the resource base.

The combination of strong production performance and open-ended geology typically supports continued exploration Investment, especially when supported by favourable gold price conditions.

Integration With Burbanks Processing Strategy

Auric Mining is also evaluating a broader development strategy involving the integration of the Munda Gold Deposit with the Burbanks Processing Plant. A scoping study is currently underway to assess the combined development potential of these Assets.

This integrated approach could allow the company to Leverage existing processing infrastructure, potentially improving project Economics and reducing Capital intensity compared with standalone development scenarios.

While no economic conclusions have been disclosed, the scoping study represents an important step in evaluating how Munda could transition from a starter pit operation into a more sustained production profile.

Conclusion

Auric Mining’s latest 32% upgrade to the Munda Gold Deposit resource marks a significant development in the company’s operational narrative. Supported by strong grade control drilling and production reconciliation, the update highlights both improved geological understanding and better-than-expected mining performance. While the resource remains open and further drilling is planned, the market reaction reflects growing confidence in the Munda project’s ability to deliver consistent production outcomes. Combined with ongoing studies into processing integration at Burbanks, the company’s near-term focus remains on translating resource strength into sustained operational performance for ASX: AWJ.