What's Happening?
Aurelia Metals has finalized a pre-feasibility study (PFS) for the New Occidental Tailings Retreatment Project at its Peak operation in central-west New South Wales, Australia. The project involves reprocessing two gold-bearing, dry-stacked tailings stockpiles
located approximately 3 kilometers from the Peak processing plant. These tailings were initially processed in the late 1980s and have since been stored in stockpiles. The study has led to a maiden mineral resource estimate of 2.6 million tonnes at 0.65 grams per tonne gold and a maiden ore reserve estimate of 2.3 million tonnes at 0.64 grams per tonne gold as of April 30, 2026. Aurelia Metals anticipates producing around 32,000 ounces of saleable gold over a decade. The project's capital cost is estimated at A$3.3 million, with A$2.7 million allocated for plant upgrades, including a new wet trommel, dewatering cyclone, and trash screen. Economic modeling suggests a post-tax net present value of A$42 million at an 8% discount rate and an internal rate of return of 258%.
Why It's Important?
The completion of the pre-feasibility study marks a significant step for Aurelia Metals in optimizing its existing infrastructure at the Peak operation. By reprocessing tailings, the company aims to unlock additional value from previously processed materials, thereby enhancing resource efficiency and sustainability. The project is expected to generate substantial economic returns, with a high internal rate of return and a significant net present value. This initiative not only highlights the potential for economic gain but also underscores the importance of sustainable mining practices. The project could serve as a model for other mining operations looking to maximize resource utilization while minimizing environmental impact.
What's Next?
Aurelia Metals plans to advance the project to a full feasibility study, with development approval sought from the Cobar Shire Council. The first half of fiscal year 2027 will focus on additional metallurgical testing, detailed engineering, and capital cost assessments, alongside securing necessary permits. Construction activities are anticipated in the second half of fiscal year 2027, with production expected to commence in fiscal year 2028. The company will continue to engage with stakeholders and regulatory bodies to ensure the project's successful progression.
