What's Happening?
Aurelia Metals has completed a Prefeasibility Study (PFS) for its New Occidental Tailings Retreatment Project at the Peak operation in Central West New South Wales. The company has declared a maiden mineral resource of 2.6 million tonnes at 0.65 grams
per tonne gold for two dry-stacked tailings stockpiles. These stockpiles, located 3 kilometers northwest of the Peak processing plant, support an ore reserve estimate of 2.3 million tonnes at 0.64 grams per tonne gold. The project is expected to produce 32,000 ounces of saleable gold over a 10-year period. The PFS indicates compelling economics with a net present value of $42 million post-tax and an internal rate of return of 258%, based on an average gold price of $5,017 per ounce. The project capital expenditure is estimated at $3.3 million, with $2.7 million allocated for plant items and $0.6 million for road improvements and preparation work.
Why It's Important?
The declaration of a maiden tailings resource by Aurelia Metals is significant as it highlights the potential for economic recovery of gold from tailings, which are often considered waste. This project not only promises to add substantial value to Aurelia's operations but also demonstrates the viability of tailings retreatment as a sustainable mining practice. The high internal rate of return and net present value suggest strong financial prospects, which could attract further investment and interest in similar projects. Additionally, the project aligns with broader industry trends towards maximizing resource efficiency and minimizing environmental impact.
What's Next?
Aurelia Metals plans to advance the project to a Feasibility Study in the first half of FY27, focusing on more metallurgical testing, detailed engineering, and obtaining necessary permits. Construction is anticipated to commence in the second half of FY27, with production targeted to begin in FY28. The company will also be participating in the Noosa Mining Conference, which could provide opportunities for further engagement with investors and industry stakeholders.
