Aurelia Metals (ASX:AMI) has completed a Prefeasibility Study (PFS) for the New Occidental Tailings Retreatment Project at its Peak operation in Central West New South Wales.
The company has declared a maiden mineral resource of 2.6 million tonnes @ 0.65 grams per tonne gold for the two dry-stacked tailings stockpiles. The stockpiles, located 3km northwest of the Peak processing plant, also support an ore reserve estimate of 2.3Mt @ 0.64g/t gold.
Aurelia estimates project capital expenditure at $3.3 million, of which $2.7 million covers plant items (including a feed trommel and associated equipment), plus $0.6 million for road improvements and prep work. The company expects to produce 32,000 ounces of saleable gold over 10 years.
The PFS delivers 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 installation of the tertiary ball mill from Dargues […] creates the opportunity to process the tailings material concurrently with lead-zinc ore processing campaigns, at low incremental capital and operating costs,” CEO Bryan Quinn says.
The tailings will be processed in parallel with the 1.1–1.2 million tonnes per annum of fresh ore feeds through Peak’s carbon-in-leach circuit. Operating costs are modelled at about $20 per tonne under the life-of-mine cost model.
Processing a 23,000-tonne bulk sample through the Peak plant showed that grinding the tailings before leaching has lifted recoveries. Current testwork recommends 63.3% recovery, though the financial model uses a conservative 60%.
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 permits.
Construction would then follow in the second half of FY27, with production targeted to begin in FY28.
The company will be attending the Noosa Mining Conference, held 22 to 24 July, at Pepper Noosa Resort, Noosa Heads, Queensland.
Mining.com.au is an official media partner of this year’s conference.
Write to JC Villarba at Mining.com.au
Images: Aurelia Metals
