What's Happening?
Aurelia Metals has completed 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 originally processed in the late 1980s and are now set to be reclaimed and processed through the existing Peak plant's facilities. The study has declared 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. Aurelia Metals forecasts production of approximately 32,000 ounces of saleable gold over ten years, with a capital cost estimated at A$3.3 million. The project is expected to progress to a full feasibility study, with construction activities anticipated in the second half of fiscal year 2027 and production beginning in fiscal year 2028.
Why It's Important?
The completion of the pre-feasibility study marks a significant step forward for Aurelia Metals in its efforts to extract additional value from existing infrastructure. The project is expected to generate substantial economic returns, with a post-tax net present value of A$42 million and an internal rate of return of 258%. This initiative not only highlights the potential for economic growth through resource optimization but also underscores the importance of sustainable mining practices. By reprocessing existing tailings, Aurelia Metals is minimizing environmental impact while maximizing resource utilization. The project could serve as a model for other mining operations looking to enhance profitability through innovative approaches to resource management.
What's Next?
Aurelia Metals plans to seek development approval from the Cobar Shire Council following initial discussions. The project will advance to a full feasibility study, with additional metallurgical testing, detailed engineering, and capital cost assessments planned for the first half of fiscal year 2027. Permit approvals will also be sought during this period. Construction activities are expected to commence in the second half of fiscal year 2027, with production slated to begin in fiscal year 2028. The successful implementation of this project could lead to further exploration and development opportunities within the region, potentially attracting additional investment and boosting local economies.
