Aurelia Metals Limited (ASX: AMI) has announced a highly encouraging update on the Mineral Resource Estimate and Ore Reserves Estimate for its Peak Gold Mines, Hera Mine, and Nymagee Project in NSW.
Overall, the company reported an increase in Aurelia Group Mineral Resources by 21% to 17.7Mt while the Group Ore Reserves increased by 19% to 4.4Mt.
In Hera, the company reported an upgrade in Mineral Resource with 94% in Measured and Indicated classification, while the Ore Reserve was reported to increase by 460kt after mining depletion.
In Peak, the company reported a Maiden resource at Kairos (Peak Deeps) of 1Mt high grade Mineral Resource that is open at depth. AMI said that the Lead and zinc dominant Mineral Resources increased by 51%, while Peak Ore Reserve increased by 259kt after mining depletion.
The company reported that the Mineral Resource upside from infill and extensional drilling at Chronos and Kairos were completed subsequent to 2019 Mineral Resource Estimate. AMI said that an update for these areas will be reported in FY 2020.
The company also outlined the Production Targets for Peak Gold Mines and Hera Mine.
Mineral resource and ore reserve estimates of three projects
Aurelia said that the Mineral Resource and Ore Reserve Estimates for Peak Gold Mines, Hera Mine, and Nymagee Project were completed in accordance with the guidelines of the JORC Code (2012 Edition) and reported as at 30 June 2019.
AMI said that the updated Mineral Resource and Ore Reserve Estimates for Hera gold-lead-zinc-silver project include results from infill and extensional drilling and are inclusive of mining depletion during the period.
AMI reported that the updated Peak Gold Mines Mineral Resources and Ore Reserves have included resource delineation drilling undertaken over the past year and assume completion of a mill upgrade to cater for lead and zinc processing in early 2020.
AMI said that the Nymagee Resource Estimate includes results from additional drilling and metallurgical test work studies undertaken over the past year.
The Hera Project is located five kilometres south of Nymagee, New South Wales.
For Hera project, the company reported Total Mineral Resource of 2,061kt with A$227/tonne NSR, 1.8 g/t Au, 2.8% Pb, 4.2% Zn, and 34 g/t Ag.
The Hera Ore Reserve Estimate was reported to be 1,577kt, with A$225/tonne, with A$218/tonne NSR, 1.9 g/t Au, 3.0% Pb, 4.5% Zn, and 34 g/t Ag.
The company said that the 2019 Ore Reserve Estimate for Hera project represents a 41% increase in tonnage against the previous Ore Reserve including mining depletion in the reporting period.
The updated Ore Reserve Estimate represents a 13% decrease in contained gold, a 47% increase in contained lead, a 45% increase in contained zinc and a 112% increase in contained silver.
Aurelia said that the increase in contained lead, zinc, and silver in the Ore Reserve has resulted from conversion of the Upper North Pod Mineral Resource from Inferred to Indicated.
The company said that a production target of 1,724kt has been estimated for Hera from the Mineral Resource Estimate 2019 of 2,061kt.
A total of 1,577kt is contributed from Measured and Indicated Mineral Resources, representing 91% of ore tonnes in the Production Target (9% classified as Inferred Mineral Resources).
Peak gold mines
The Peak operates two distinct underground mines, each with a number of separate deposits.
The company noted that the Peak Group Mineral Resources are estimated from independent models including Chronos, Perseverance, Peak, Kairos (Peak Deeps), Chesney, New Cobar–Jubilee, and Great Cobar.
For Peak gold mines, the company reported Total Mineral Resource of 14,210kt with A$213/tonne NSR, 1.5 g/t Au, 1.4% Cu, 0.9% Pb, 1.1% Zn, and 9 g/t Ag.
The Peak Gold Mines Ore Reserve Estimate was reported to be 2,834kt, with A$225/tonne NSR, 2.0 g/t Au, 1.1% Cu, 1.8% Pb, 1.9% Zn, and 15 g/t Ag.
The 2019 Ore Reserve Estimate represents an increase in tonnage over the previous estimate (allowing for mining depletion) of 259kt (10% increase). This increase includes the addition of 180kt in Ore Reserves from Kairos, 103kt from Chesney, 198kt from Chronos Pb/Zn, and 45kt from Peak Pb/Zn.
The company said that several factors have contributed to changes in the Mineral Resource Estimate of Peak gold mines, like the discovery of additional high grade mineralization at Kairos (Peak Deeps) and Chronos, and updated NSR parameters to align with current metallurgical performance.
The company said that a Production Target of 3,989kt has been estimated for Peak gold mines from the 2019 Mineral Resource Estimate of 14,210Kt. This represents a conversion of 28% of the Mineral Resource to the Production Target.
Nymagee is considered a structurally controlled Cobar-style deposit located five kilometres north-east of the Company’s Hera Mine.
For Nymagee, the company reported Total Mineral Resource of 1,454kt with A$205/tonne NSR, 2.2% Cu, 0.8% Pb, 1.4% Zn, and 18 g/t Ag.
A comparison between the 2018 Mineral Resource Estimate and the 2019 Estimate shows a 62% reduction in Mineral Resource tonnes, a 35% reduction in contained copper metal, a 63% reduction in contained lead metal, and a 67% reduction in contained zinc metal.
No production target has been estimated for Nymagee.
Aurelia group estimate
The company reported that the Aurelia Group Mineral Resource Estimate is 17,720kt, with A$214/tonne NSR, 1.4 g/t Au, 1.3% Cu, 1.1% Pb, 1.5% Zn, and 13 g/t Ag.
Meanwhile, the Ore Reserve Estimates for Aurelia Group are 4,410 kt, with A$223/tonne NSR, 1.9 g/t Au, 0.7% Cu, 2.2% Pb, 2.8% Zn, and 22 g/t Ag.