Australian gold producer Auric Mining Limited (ASX: AWJ) (“Auric” or the “Company”) has delivered a major upgrade to the Munda Gold Deposit in Western Australia, increasing the in situ Mineral Resource by 32% to 192,000 ounces of gold following highly successful mining at the Munda Starter Pit.
The updated Mineral Resource estimate now stands at 4.20 million tonnes at 1.43 g/t gold for 192,000 ounces, despite the depletion of approximately 10,000 ounces through recent mining activities. Including remaining stockpiles, the broader Munda Project resource totals 4.26 million tonnes at 1.42 g/t gold for 194,000 ounces.
The announcement highlights the growing scale and economic potential of Munda as Auric advances plans for a combined Munda open pit and Burbanks Processing Plant development.
Figure 1: Munda Starter Pit highlighting 5m by 5m grade control drilling and labelled gold intercepts exceeding 100 g x m/t, alongside displayed resource drill holes. [Source: Auric Mining Limited]
Munda Resource Upgrade Marks Major Milestone
Auric stated that mining from the Munda Starter Pit substantially improved the Company’s understanding of the gold system and confirmed the robustness of the mineral resource model.
The revised resource estimate reflects updated modelling methods, less conservative treatment of high-grade intercepts, and stronger reconciliation data from actual production results.
The Company reported that gold production from the Starter Pit significantly exceeded expectations. Auric produced 8,886 ounces of gold compared with the original budget estimate of 6,100 ounces, while an additional approximately 2,900 ounces remain stockpiled for future processing.
Managing Director Mark English said the updated resource demonstrates the growing value of the Munda asset.
“We are delighted with the increase in the gold resource. Munda continues to exceed all our expectations. It continues to develop and is now a very sizeable gold resource and asset.”
He added:
“The results from the Munda Starter Pit are outstanding. The main purpose of the initial mining was to test the resource model and increase our understanding of the gold mineralisation at Munda. Encouragingly, the recovered gold production far exceeded initial estimates.”
Table 1: May 2026 in situ Mineral Resource estimate for the Munda Gold Deposit. [Source: Auric Mining Limited]
Table 2: December 2024 Mineral Resource estimate for the Munda Gold Deposit. [Source: Auric Mining Limited]
High-Grade Drilling Results Strengthen Confidence
One of the most significant aspects of the announcement was the exceptional grade control drilling completed on a 5m by 5m spacing during Starter Pit mining.
Several drill holes returned extraordinary gold grades, including:
- MGCR1022: 14m at 115.67 g/t Au
- MGCR0996: 10m at 40.31 g/t Au
- MGCR0998: 6m at 66.44 g/t Au
- MGCR1006: 14m at 14.51 g/t Au
- MGCR0686: 9m at 21.05 g/t Au
- MGCR0950: 4m at 46.88 g/t Au
These high-grade intercepts validated Auric’s geological interpretation and demonstrated the presence of strong gold mineralisation within the broader lower-grade system.
The Company explained that Munda’s mineralisation contains rare but extremely high-grade zones distributed within a broader halo of disseminated gold. Grade control drilling helped Auric better understand how these high-grade zones contribute to mineable gold inventory.
Figure 2: Cross sections 360390mE, 360470mE, and 360510mE displayed from the top left in clockwise sequence. [Source: Auric Mining Limited]
Production Reconciliation Supports Resource Reliability
Auric reported strong reconciliation between grade control estimates and actual production outcomes from the Starter Pit.
The Company mined approximately 144,000 tonnes at an average grade of 2.34 g/t gold for 10,900 ounces. This result exceeded the May 2026 grade control estimate by 6% in both grade and contained ounces.
Auric also noted that production estimates totalled approximately 8% more contained gold than the updated block model estimates within the mined volume, further supporting the reliability of the revised resource model.
The Company believes these reconciliation outcomes strengthen confidence in future mining projections and provide a strong foundation for larger-scale development plans.
Table 3: Comparison of model estimates and Starter Pit production using a 0.75 g/t cut-off grade. [Source: Auric Mining Limited]
Resource Remains Open Along Strike and at Depth
Importantly, Auric confirmed that the Munda deposit remains open both along strike and at depth, providing additional exploration upside.
The current optimal pit shell extends roughly 980 metres along strike, reaches widths of up to 400 metres, and extends to approximately 200 metres depth.
Auric has already commenced planning for further infill and extensional drilling programs aimed at growing the resource base.
Mr English said the Company expects further drilling to continue expanding the deposit.
“We are looking forward to additional drilling, which we anticipate will continue to expand and grow the gold resource.”
The updated modelling also reflects a substantially stronger gold price environment. Auric generated the new pit shell using a gold price assumption of A$7,000 per ounce, compared with A$3,200 per ounce used in the 2024 estimate.
This change materially increased the scale of the economically viable pit shell and contributed to the overall resource growth.
Munda and Burbanks Development Strategy Gains Momentum
Auric is currently progressing a Scoping Study assessing the combined development of the Munda open pit operation alongside the Burbanks Processing Plant.
The Company views the successful Starter Pit campaign as a transformational milestone because it validated Auric’s self-mining capability while generating substantial cash reserves.
Mr English highlighted the strategic importance of these outcomes.
“The Starter Pit also enabled us to build our knowledge and experience in our self-mining capability and generate substantial cash reserves. These cash reserves will allow us to progress the greater Munda and Burbanks operation and transform the Company into a fully integrated mining house.”
The combined development strategy could position Auric as a vertically integrated gold producer with greater operational flexibility and improved project economics.
Meanwhile, metallurgical performance from the Starter Pit also exceeded expectations. Auric achieved average gold recoveries of 89.5% across two processing campaigns, outperforming earlier recovery assumptions used in the pre-feasibility study.
Geological Understanding Continues to Improve
Auric stated that Munda’s gold mineralisation occurs predominantly within basalt host rocks, with mineralisation controlled by structural intersections involving faults and shear zones.
The updated resource estimate incorporates data from decades of historical drilling combined with Auric’s more recent drilling campaigns completed between 2021 and 2024.
The Company utilised Multiple Indicator Kriging (MIK) modelling techniques with updated mining selectivity assumptions based on actual operational performance from the Starter Pit.
Auric believes the refined geological interpretation and updated modelling approach now provide a more accurate representation of the deposit’s recoverable gold inventory.
Investors’ Outlook
Auric Mining Limited (ASX: AWJ) has delivered a strong operational and resource update that materially strengthens the investment case for the Company.
The 32% increase in the Munda Mineral Resource, combined with production reconciliation outperforming expectations, demonstrates growing confidence in the scale and economic potential of the Project. The exceptionally high-grade drilling results also reinforce the quality of the mineralisation system.
The Company’s strategy to integrate Munda with the Burbanks Processing Plant could significantly enhance long-term production capability while lowering operational dependence on third parties.
Auric’s share price performance reflects improving market sentiment:
- Share Price: $0.310
- Daily Change: +5.08%
- 2026 Year-to-Date Performance: +10.91%
- One-Year Performance: +45.24%
- Outperformance vs ASX 200 (1yr): +41.28%
- Market Capitalisation: $57.06 million
Figure 3: Auric’s share price performance in the last 52 weeks
With additional drilling planned, a Scoping Study underway, growing cash reserves, and the resource still open for expansion, investors will likely continue monitoring Auric’s progress closely as the Company advances towards becoming a fully integrated Australian gold producer.
Disclaimer
This editorial was developed in collaboration with Auric Mining Limited, a Colitco client at the time of publishing. This article is for informational purposes only and does not constitute financial, investment, or legal advice, nor an offer or recommendation to buy or sell securities. The views expressed are based on publicly available information and Company announcements available as of the publication date. While reasonable care has been taken to ensure accuracy, no warranty is given regarding the completeness or reliability of the information presented. Readers should conduct their own independent research and consult a licensed financial adviser before making any investment decisions regarding Auric Mining Limited or any other securities.
Last modified: May 25, 2026
