The two initial stages of production at the Jeffreys Find gold mine in Western Australia have generated more than $100 million in gold sales for owner Auric Mining (ASX: AWJ).

As of 21 February, Auric had sold a total of 17,901 ounces of gold valued in excess of $72m from Stage 2 mining through the company’s joint venture partner BML Ventures of Kalgoorlie.

Stage 1 mining in 2023 earned Auric $29.28m, with Stage 2 on target to deliver a cash surplus of up to $12m.

Rising gold price

Auric managing director Mark English said the rising gold price had benefited the project.

“Before starting, we estimated a gold price of $2,600/oz, so who could have envisaged that we would be selling gold at more than $4,600/oz?,” he said.

“By any measure, it is a brilliant result.”

Auric confirmed there were approximately 60,000 tonnes of ore left on the run-of-mine pad at Jeffreys Find and BML is in negotiations with a local toll mill for this to be processed in the coming months.

JV agreement

Under the terms of Auric’s joint venture (JV) agreement at Jeffreys Find, BML is the project’s miner, operator, and manager and incurs all mining, haulage, milling costs and related expenses.

After the sale of the gold, Auric and BML subtract all direct costs before splitting the surplus cash proceeds on a 50:50 basis.

BML pays interim surplus cash distributions to Auric as per their agreement.

Cash distribution

Auric received a $1.5m distribution on 21 February, taking the total amount paid to date for Stage 2 to $8.1m.

Further cash distributions of as much as $4m will follow the final sale.

BML has confirmed that Auric’s share of Stage 2 surplus cash will be in the range of $11m to $12m.

Mr English said the project had been a “defining experience” for Auric.