Aureka Limited (ASX: AKA) has secured a three-year binding toll milling agreement with the owners of the Wedderburn Gold Processing Mill. This agreement provides the company with a flexible processing pathway for ore extracted from any of its nominated projects across its Victorian portfolio, which includes the St Arnaud project, the Irvine Gold Project, and the Jubilee prospect.

The deal is structured on a cost-plus-margin basis, allowing Aureka to potentially fund capital upgrades to the mill if required to accommodate specific production volumes or metallurgical needs. These upgrades could involve the addition of crushing circuits, leaching infrastructure, or enhanced gravity separation systems. The company views this collaboration as a strategic step to improve mill utilization and reduce unit costs for both parties.

"After our recent JORC increase to 455koz and production licence application at Comstock, it is pleasing to now lock in a project agnostic processing option for Aureka's projects. We have worked extremely well with the team at Core Prospecting and the potential to add Comstock ore to the feed at the Wedderburn Mill should boost utilization and lower unit costs for all parties."

— James Gurry, Aureka Managing Director

For the near-term, Aureka is positioning the Comstock gold and silver asset within the St Arnaud project as its first production target. The project is located approximately 45km from the Wedderburn facility, making it a primary candidate for processing. To advance this objective, the company plans to undertake detailed metallurgical studies to confirm the suitability of the facility's current gravity and flotation circuits for the specific mineralisation found at Comstock. Further clarity on reserved mill capacity will emerge as the company completes its ongoing feasibility studies.

The agreement also establishes a long-term framework for the company's broader exploration assets. Aureka intends to conduct a concept study to assess whether processing ore from the earlier-stage Irvine Gold Project—situated 135km from the mill—could be economically viable. This evaluation forms part of a wider effort to integrate the company's diverse portfolio of Victorian assets with existing regional processing infrastructure.

Read the full announcement: Aureka Signs Toll Milling Agreement