Aurelia Metals has completed a Pre-Feasibility Study for its New Occidental Tailings Retreatment Project, declaring a maiden Ore Reserve and outlining strong economics and a clear path to production at its Peak Operation in NSW.
- Maiden Ore Reserve of 2.3Mt at 0.64g/t Au declared
- Pre-Feasibility Study forecasts 32,000oz gold production over 10 years
- Project leverages existing Peak processing plant with $3.3M capital
- Robust economics with post-tax NPV8 of A$42M and IRR of 258%
- Feasibility study underway for FY28 production start
Tailings Project Unlocks New Gold Source at Peak
Aurelia Metals (ASX:AMI) has unveiled a maiden Ore Reserve and Mineral Resource for its New Occidental Tailings Retreatment Project, marking a significant expansion of its gold production options at the Peak Operation in central west New South Wales. The Pre-Feasibility Study (PFS) completed in mid-2026 reveals a 2.3 million tonne Ore Reserve grading 0.64 grams per tonne gold, alongside a Mineral Resource of 2.6 million tonnes at 0.65g/t Au.
The project targets two dry-stacked tailings stockpiles, relics from processing campaigns in the late 1980s, situated about 3 kilometres northwest of the Peak processing plant. Aurelia plans to reclaim and retreat these tailings through the existing Peak plant, utilising the recently installed tertiary ball mill and carbon-in-leach (CIL) circuit.
Strong Economics Back Low-Capital Upgrade
The PFS outlines compelling economics with a post-tax Net Present Value (NPV8) of A$42 million and an Internal Rate of Return (IRR) of 258%, based on a conservative average gold price of A$5,017 per ounce. Capital expenditure is modest at $3.3 million, covering the installation of a feed trommel, minor roadworks, and associated plant upgrades.
Operating costs are estimated at around $20 per tonne, aided by the strategy of processing tailings concurrently with lead-zinc ore campaigns, thus avoiding displacement of higher-value fresh ore. The project is forecast to produce approximately 32,000 ounces of saleable gold over a decade, adding a meaningful new revenue stream with low incremental costs.
Environmental and Operational Benefits
Beyond economics, the project promises environmental upside by relocating tailings from their current sites to the Peak Tailings Storage Facility (TSF). This shift simplifies rehabilitation efforts, cutting estimated closure costs at New Occidental from $5.2 million to $2.6 million. The project also aligns with Aurelia’s broader Cobar region strategy, enhancing operational flexibility and production optionality.
Managing Director Bryan Quinn highlighted the tailings project as a prime example of value extraction from existing infrastructure. He noted that the tertiary ball mill, sourced from the Dargues operation, plays a pivotal role in enabling the retreatment alongside base metal processing, keeping capital and operating costs low.
Pathway to Production and Approvals
The project has been gated into feasibility, with detailed engineering, metallurgical test work, and permitting scheduled for the first half of FY27. Construction is planned for the second half of FY27, targeting first production in FY28. Aurelia has engaged with Cobar Shire Council, the consent authority, which has expressed support for the proposed approval pathway.
Mining lease tenure extends to 2033 with expectations for renewal to cover the project’s lifespan. The haulage route from the tailings stockpiles to the Peak plant is established, requiring only minor upgrades. Ausenco Services Pty Ltd has delivered engineering design and trade-off studies underpinning the project’s low capital footprint.
Technical Confidence in Resource and Reserve
The Mineral Resource and Ore Reserve estimates have been independently reviewed and comply with JORC 2012 standards. Drilling programs in 2023 and 2025 achieved approximately 20x20 metre spacing, providing an Indicated classification for most of the resource. Metallurgical testing, including a 23,000 tonne bulk sample processed through the Peak plant, supports recoveries around 60%, with stress testing down to 53% recovery still delivering positive project economics.
The project’s modest capital and operating costs reflect extensive use of existing infrastructure, including the Peak plant’s milling and CIL circuits. The addition of a wet trommel, dewatering cyclone, and trash screen will facilitate processing of tailings material, ensuring minimal disruption to ongoing base metal operations.
Bottom Line?
Aurelia’s New Occidental Tailings project offers a low-capital, environmentally beneficial gold boost, but its success hinges on upcoming feasibility outcomes and permitting progress.
Questions in the middle?
- How will metallurgical recovery rates hold up across the full tailings stockpiles beyond bulk sample results?
- What are the key risks in securing timely development approvals from Cobar Shire Council and other regulators?
- Could the project’s low capital intensity model be replicated at other tailings sites within Aurelia’s portfolio?