Jeffreys Find has estimated mineral resources of 1.21 million tonnes grading 1.22 grams per tonne for 47,900 ounces of gold.

The deposit is thick at surface, remains open at depth and has never been mined.

Mineralisation at the deposit is associated with a moderately southwesterly dipping banded iron formation unit made up of magnetite-grunerite chert and bounded by sandstones, siltstones, cherts and limestones.

Metallurgical testwork showed the ore was prime for conventional carbon-in-leach processing, with a scoping study confirming the viability of open pit mining and third-party toll treatment of the prospective gold deposit.

Under the scope of the agreement between Auric and BML, mining will take place in two stages with a starter pit then final pit.

BML will be responsible for all mining-related capital and working costs and will use its mining fleet to extract ore and deliver it to one of the nearby gold processing plants in the region.

This includes costs and payments for haulage, staff, equipment and contractors.

Auric will be responsible for all permitting costs and for building a site access road.

Once costs have been taken out any surplus cash is to be split 50:50 between Auric and BML.

Auric managing director Mark English said pre-mining activities relevant to mine planning and permitting would start including geotechnical drilling, a hydrological study and ore and waste-rock geochemical studies, a fauna and vegetation survey and a heritage survey.

He said a pre-mining grade control program would also be carried out to assist with mine planning.

"This agreement with BML represents a substantial step in Auric's growth," English said.

"The skills and resources that BML bring to the project will enhance Jeffreys Find development, benefiting both companies while limiting Auric's downside risk to zero."