Aurelia Metals has successfully extended high-grade mineralisation at its Federation Mine by approximately 70 metres and discovered a new polymetallic lens, the Harley Lens, signalling further growth potential in the Nymagee District.
- Federation West mineralisation extended down-dip by ~70m
- Discovery of new high-grade Harley Lens
- High-grade mineralisation intersected near current workings
- Lancelot prospect downgraded but remains prospective
- Lyell aircore drilling identifies preliminary anomalies for follow-up
Federation Mine Breakthrough with Underground Drilling
Aurelia Metals (ASX:AMI) has marked a significant milestone with the completion of its first underground exploration drilling program at the Federation Mine in western New South Wales. This program extended the high-grade Federation West mineralisation by roughly 70 metres down-dip, a substantial step that confirms the deposit’s potential to grow beyond previously known boundaries.
Adding to the excitement, the drilling uncovered the Harley Lens, a new polymetallic lens located further northwest of Federation West. The Harley Lens spans approximately 140 metres down-dip and 70 metres along strike, with promising grades including up to 29.5% zinc and 15.8% lead over a 1-metre interval. This discovery underscores the evolving geological understanding of Federation and hints at further undiscovered mineralisation in the district.
High-Grade Hits Close to Current Operations
Notably, the underground program intersected high-grade zones within 1.8 metres of current mine workings, delivering immediate value. One standout intercept from drillhole FDR0395 returned 5.5 metres at 31.8% zinc and 16.5% lead, material that has been prioritized for mining. Andrew Graham, Aurelia’s Chief Development and Technical Officer, highlighted that these results "reaffirm the strong likelihood of continued discovery as we progress the mine and better understand the orebodies." This proximity to existing workings could translate into near-term production upside.
Regional Prospects Show Mixed Results
While Federation continues to impress, exploration at the Lancelot and Lyell prospects in the Nymagee District yielded more subdued outcomes. Two drillholes at Lancelot intersected narrow intervals of elevated but immaterial gold and copper, with graphite identified as the cause of a strong chargeability anomaly. Despite downgrading Lancelot’s immediate prospectivity, Aurelia maintains some optimism given the unexplained surface geochemical anomalies.
The Lyell prospect underwent an extensive aircore drilling campaign, with 142 holes drilled to test basement geochemistry. Although initial results were immaterial, three geochemically anomalous zones were identified, warranting further investigation. Percussion drilling is planned to test these targets by the end of FY26, with additional work scheduled for FY27.
Strategic Exploration and Future Drilling Plans
Aurelia plans to transition underground rigs back to resource infill drilling at Federation before commencing exploration drilling at Federation East in the latter part of FY26. Surface aircore drilling will expand the geochemical dataset around Federation, aiding in the detection of any significant offsets. Geophysical surveys and structural modelling are also slated for FY27 to refine targeting efforts, particularly around the Dominion mineralisation located 800 metres southeast of Federation.
These developments come on the heels of the company’s recent operational and financial progress, including a production ramp-up at Federation that boosted profits by 26% earlier this year, following a substantial $150 million financing package secured to support growth ambitions. This financial backing provides Aurelia with the means to aggressively pursue exploration and development in the Cobar Basin region.
Bottom Line?
Federation’s new discoveries and extensions could reshape Aurelia’s resource base, but the structural complexity and early-stage prospects like Lyell require careful follow-up to translate potential into production.
Questions in the middle?
- How will the Harley Lens discovery influence Aurelia’s resource estimates and mine planning at Federation?
- What impact might the proximity of high-grade mineralisation to current workings have on near-term production schedules?
- Can further drilling at Lyell and Lancelot convert preliminary anomalies into economically viable deposits?