Aurelia Metals Limited (ASX: AMI) has announced a positive update on the ongoing exploration and Resource upgrade work at the Federation deposit, located ten kilometres south of the Company’s operating Hera Mine in New South Wales.
The company announced that further broad, high grade intervals of base metal and gold mineralisation was intercepted during Resource upgrade drilling at Federation deposit, including 16.0m at 25.8% Pb+Zn, 2.8g/t Au & 0.4% Cu, incl. 5.15m at 44.4% Pb+Zn, 8.6g/t Au & 0.7% Cu; and 28.0m at 7.8% Pb+Zn, 0.1g/t Au & 0.3% Cu, incl. 8.7m at 17.4% Pb+Zn, 0.2g/t Au & 0.7% Cu.
AMI noted that the new results support upside Resource potential in the lower-central portion of the Federation deposit. Aurelia said that the recent drill intercepts extend beyond the mineralised zone evaluated by the Federation Scoping Study.
The company announced that a third drill rig has been mobilised to the Federation area to expedite exploration and Resource conversion activities.
The company had recently reported the February 2021 Mineral Resource Estimate (MRE) for Federation totalling 3.5Mt at 5.5% Pb, 9.8% Zn, 1.4g/t Au, 7g/t Ag & 0.3% Cu, which included a significant increase in the Indicated classification to 1.1Mt at 6.1% Pb, 10.7% Zn, 3.6g/t Au, 8g/t Ag & 0.4% Cu. Following this, AMI had commenced exploration and Resource upgrade work at the Federation deposit.
Broad, high-grade intervals of base metal and gold
The company said that substantial additional infill and extensional drilling was completed at the Federation deposit since the data cut-off for the February 2021 MRE. AMI announced that further broad, high-grade intervals of base metal and gold mineralisation were intercepted during Resource upgrade drilling.
Latest significant results included FDD110W2: 16.0 metres at 25.8% Pb+Zn, 2.8g/t Au, 16g/t Ag & 0.4% Cu from 389m, including 5.15 metres at 44.4% Pb+Zn, 8.6g/t Au, 27g/t Ag & 0.7% Cu from 389.95m; FDD107W2: 34.5 metres at 19.5% Pb+Zn, 0.5g/t Au, 10g/t Ag & 0.8% Cu from 517m, including 11.1 metres at 35.4% Pb+Zn, 0.5g/t Au, 20g/t Ag & 1.6% Cu from 529m, and 4.5 metres at 41.9% Pb+Zn, 0.5g/t Au, 12g/t Ag & 0.5% Cu from 547.5m; and FDD107: 28.0 metres at 7.8% Pb+Zn, 0.1g/t Au, 5g/t Ag & 0.3% Cu from 560m, including 8.7 metres at 17.4% Pb+Zn, 0.2g/t Au, 9g/t Ag & 0.7% Cu from 570.8m.
All significant new results received for the Federation deposit are as shown below.
Aurelia noted that the broad, high-grade intercepts in FDD107, FDD107W2, and FDD110W2 all occur within the lower central portion of the deposit and support the presence of a second steeply plunging high grade mineralised corridor.
Encouraging results from step-out drilling
The company announced that further encouraging mineralisation was intercepted in step-out drilling along strike to the northeast.
AMI said that FDD093W3 returned 20.0 metres at 5.2% Pb+Zn, 0.3g/t Au & 0.6% Cu (including 3.0 metres at 9.6% Pb+Zn, 1.4g/t Au & 1.7% Cu). The company noted that the presence of both base metals and gold in this position leaves the northeast strike of the deposit open, with further step-out drilling planned.
Mineralised zone extended
Aurelia noted that the recent Resource upgrade and extensional drilling intercepts have extended the mineralised zone beyond that evaluated by the Federation Scoping Study, offering further upside for a potential mine development.
Updates and next steps
AMI said that the near-term drilling will also test the potential for additional steeply plunging high-grade zones in the sparsely explored lower and upper southwest portions of deposit.
The company announced that a third surface rig has been mobilised to the Federation site to expedite Resource infill and extensional drilling, along with evaluation of a number of highly prospective regional targets close to the Federation deposit.
*Image Source: Aurelia Metals Limited