Aurelia Metals Limited reported that the NSW Government had granted Development Consent for developing Aurelia’s high-grade, polymetallic Federation Mine deposit.
According to Aurelia, Federation Mine is now one of the quickest-moving mining projects in recent NSW history, having received Development Permission three months sooner than projected.
The Federation Mine would extract high-grade zinc, lead, copper, and gold utilising modern underground mining processes during an initial eight-year lifespan with a processing capacity of 600,000 tonnes per year.
Aurelia said the mine would have a low disturbance footprint because most mining activities will occur underground and use existing infrastructure from Aurelia’s nearby Hera Mine. Ore mined in Federation will be processed at Aurelia’s two existing processing plants before being trucked to Hermidale for railing and export. Combined, these criteria result in a capital-efficient project with low development risk.
Aurelia reported that it has already finished all necessary surface and civil work at the Federation as part of an earlier approval to build the exploration decline, and 90 metres into the decline have been dug.
Aurelia intends to continue drilling to extend the mine life at Federation, which remains open in various directions, possibly expanding the deposit’s known extent.
A funding agreement for Federation Mine’s development will likely be disclosed by the end of March.
Interim CEO Andrew Graham discussed how Federation Mine would provide significant value to Aurelia’s shareholders and the communities.
“We would like to thank the NSW Government and regulatory agencies for working with us to approve Federation in such a short timeframe. We are incredibly proud this development will provide 140 skilled jobs over the initial life of mine and continue to contribute to the regional economy, and supply the metals essential for the manufacture of renewable technologies,” Graham said.
Graham added, “Federation is one of Australia’s highest grade base metals development projects, with a zinc equivalent grade of 16.7%, and will benefit from precious metal credits, which will enhance value. We anticipate that this high-value material, together with cheap capital expenditure, will result in early cashflow and speedy payback for our stockholders.”
