Auric Mining has pulled off a coup, snapping up a significant package of processing infrastructure for its Burbanks gold project for the bargain-basement price of just $1.2 million. The company says the deal was struck ata fraction of the estimated $15 million to $20 million cost of buying equivalent new equipment.

The move locks in the critical long-lead items needed to bring the company’s planned 600,000-tonne-per-annum carbon-in-leach processing plant to life. It also fits neatly into a market where miners are prioritising capital discipline. The acquisition of second-hand plants is becoming an increasingly popular method for cutting upfront costs and time, thereby de-risking project execution in the current gold cycle.

The infrastructure package acquired from a closed mine site in New South Wales is the lynchpin of this strategy. The company says the plant is in excellent condition and includes a complete three-stage crushing circuit, a fine ore bin, conveyors, material handling equipment, shedding and a milling structure with its own associated infrastructure.

Auric identified the equipment during the preparation of its July Burbanks-Munda integrated scoping study, with the purchase now securing the capital and schedule benefits that were factored into that report.

In a move that will likely trigger a sigh of relief from the maintenance planners, the deal also includes all associated spare parts and consumables. In addition, Auric has managed to secure two complete spare cone crushers and one complete spare jaw crusher, significantly bolstering the plant’s future operational reliability and likely reducing future capital and operating expenses.

The company has engaged specialist contractor Interquip to begin dismantling and relocating the plant during the fourth quarter of this year. All equipment is expected to be on-site at Burbanks, which sits 9km south of Coolgardie in Western Australia, during the first quarter of 2027, ready for reconstruction to begin. Auric is targeting a first quarter 2028 restart for the processing plant.

For $1.2 million we’ve secured a substantial package of fixed plant infrastructure for the Burbanks rebuild at a significant discount to replacement cost. Importantly, it gives Auric immediate access to high-quality, critical crushing infrastructure and locks in both capital estimates and the development timeline used in our study.

For Auric, this isn’t a developer’s roll of the dice. The company is already a profitable, cash-generating producer, recently posting a stunning $28 million net profit before tax for the half-year to June. The result was underpinned by $44.8 million in revenue and a powerful net operating cash flow of $33.8 million, generated primarily from its Munda gold mine starter pit near Widgiemooltha.

The cash flow from Munda is now being funnelled into a broader hub-and-spoke strategy, highlighted by the recent acquisition of the Union Jack gold project just north of Coolgardie. That deal boosted Auric’s global resource inventory by a hefty 51 per cent to 301,000 ounces of gold and, sitting just 15 kilometres by road from the Burbanks site, provides a key potential ore source for the new mill.

While the acquired plant supports the initial 600,000-tonne-per-annum design laid out in the scoping study, Auric says it also provides a clear platform for a potential future expansion to 1.2 million tonnes per annum.

By securing the key hardware for a song, Auric has taken a huge slice of risk off the table for its Burbanks development. With a profitable mine generating serious cash, a growing inventory of ore sources within trucking distance and now the processing plant locked in, the company appears to be systematically piecing together the key components of a new gold production hub near Coolgardie.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au